NEWS RELEASE | Exhibit 99.1 |
RIVERVIEW FINANCIAL CORPORATION
REPORTS FIRST QUARTER EARNINGS FOR 2020
HARRISBURG, PA, May 4, 2020 / PRNEWSWIRE / Riverview Financial Corporation (the “Company” or “Riverview”) (NASDAQ: RIVE), today reported unaudited financial results at and for the three months ended March 31, 2020. Riverview reported net income of $633 thousand, or $0.07 per basic and diluted weighted average common share, for the first quarter of 2020, compared to a net loss of $687 thousand, or $(0.08) per basic and diluted weighted average common share, for the first quarter of 2019. The major factor impacting earnings in the first quarter of 2020 was the recognition of a $1.8 million provision for loan losses. The increase in the provision for loan losses was a result of loan growth and increases in historical loss factors primarily due to thecharge-off of one unsecured credit associated with a fraudulent borrower and in qualitative factors related to the reserve build associated with the effects ofCOVID-19 as of the balance sheet date. As the Company weighs additional information on the potential impact of this event on our overall economic prospects, coupled with our loan officers’ further assessments of the impact on individual borrowers, our delinquencies and loss estimates will be revised as needed. These revisions could have a material impact on future provisions to the allowance for loan losses and results of operations. Another major factor influencing the level of earnings in the first quarter of 2020 was the recognition of $315 thousand less of net accretion on acquired assets and assumed liabilities comparing the first quarters of 2020 and 2019. Partially offsetting the impact of these reductions to income was the recognition of a $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 results for the first three months of 2019 included the recognition of a nonrecurring executive separationpre-tax expense totaling $2.2 million, which primarily contributed to the first quarter net loss.
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 certainnon-GAAP financial measures, such as tangible book value per share and return on average tangible stockholders’ equity. Riverview believes thesenon-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Wherenon-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measures is provided in the accompanying tables. Thenon-GAAP financial measures Riverview uses may differ from thenon-GAAP financial measures other financial institutions use to measure their results of operations.
HIGHLIGHTS
| • | Total noninterest expense decreased $977 thousand, or 9.6%, during the first quarter of 2020 compared to the quarter ended December 31, 2019. |
| • | Salaries and employee benefits expense decreased $217 thousand, or 16.5% annualized, in the first quarter of 2020 compared to the fourth quarter of 2019. |
| • | Total interest-bearing fund costs declined to 0.95% for the quarter ended March 31, 2020 from 0.99% for the quarter ended December 31, 2019. |
| • | The coverage ratio, allowance for loan losses as a percentage of nonperforming assets, increased to 144.0% at March 31, 2020, an improvement from 108.9% at March 31, 2019. |
| • | The allowance for loan loss balance increased 9.8% during the first quarter of 2020 compared to 2019 year end. |
| • | Book value per share and tangible book value per share grew to $12.82 and $9.87 per share, respectively, at the end of the first quarter of 2020, representing increases of $0.42 and $0.54 per share, respectively, compared to the same period last year. |
| • | Stockholders’ equity as a percentage of total assets improved to 10.6% at the end of the first quarter of 2020 compared to 9.97% at the same period last year. Tangible stockholders’ equity as a percentage of tangible assets increased to 8.36% at March 31, 2020 from 7.69% at March 31, 2019. |
“I am truly pleased to report that our first quarter financial results tangibly demonstrate the impact of initiatives implemented during 2019. Core results reveal that a healthy pipeline of loan applications in process in the last quarter of 2019 resulted in loan growth, net during the 1st quarter of 2020 totaling $35.3 million, or 17%, annualized. Much of this activity is the result of our branch and resource reallocation strategy, entering new growth markets throughout 2019,” said Brett D. Fulk, President and Chief Executive Officer. Fulk went on to say “additionally, we experienced anon-interest expense reduction totaling $977 thousand compared to the previous quarter, and increasednon-interest income, excluding gains or losses on the sale of assets, by $262 thousand when comparing to the same period one year ago. All of these results will have the desired annual impact on our core earnings and operating results as our strategic initiatives intended.”
“Having said that,” continued Fulk, “we will not be immune from the impact theCovid-19 pandemic will have on our customers and the communities we serve. While it is impossible to know the totality of the impact this pandemic and the virtual economic shut down will have on our institution at this time, I am confident we entered this crisis well positioned with excellent asset quality, adequate liquidity, and being a well-capitalized institution. Our credit exposure to high risk industries or segments of the economy as a result of the current pandemic is either low or manageable, given our past adherence to strict underwriting guidelines. Our employees have been phenomenal in their support of our efforts to both maintain operations as an essential business for the benefit of our customers and communities, while doing everything in our power to help ensure their safety and the safety of our customers. We truly are all in this together, and I have no doubt we will come through this pandemic just fine given the spirit of the American people and the hard work and dedication of all front line essential workers, whom we are truly thankful for!”
COVID-19 Initiatives:
| • | Approximately one third of our work force is currently working from home. |
| • | Strategic temporary closure of offices, successfully consolidating customer traffic into nearby offices or online and/or mobile banking applications. |
| • | Operating lobby hours by appointment only, conducting business primarily through drive up facilities in all locations that remain open. |
| • | Providing payment relief to borrowers experiencing financial stress due toCovid-19, including loan payment modifications for periods up to 6 months under guidelines established by regulatory agencies, avoiding a significant increase in troubled debt restructure classifications for eligible customers. |
| • | Waiving late charges on loans and overdrafts on deposit accounts, upon request, for customers experiencingCovid-19 related financial hardship. |
| • | Permitting penalty free early withdrawals from Certificates of Deposits, within certain parameters. |
| • | Permitting customers to exceed the maximum monthly transaction count fornon-demand deposit accounts subject to Regulation DD, as permitted by the temporary removal of this monthly limit by regulatory agencies. |
| • | Created a low cost, unsecured consumer loan program for customers experiencing financial hardship as a direct result ofCovid-19. |
| • | Participated in the CARES Act Approved Paycheck Protection Program administered by the SBA as an SBA approved 7(a) lender in both rounds of program funding, successfully delivering PPP loan approvals to every eligible bank customer that applied for PPP funding with Riverview Bank. |
| • | Established teams, working in various shifts or cycles to avoid contact one with another, helping to ensure the safety of our employees and continuity of service to our customers. |
| • | Providing latex gloves and masks for all customer contact employees to help ensure the safety of both our customers and employees. |
| • | Implementation of appropriate cleaning and sanitization protocols throughout the organization. |
| • | Donated $15,000 to the Central PA Food Bank, which services multiple local food banks throughout our footprint. |
| • | Eliminated all Riverview Bank ATM fees during the current crisis. |
INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the three months ended March 31, decreased $984 thousand to $8,846 thousand in 2020 from $9,830 thousand in 2019. The decrease intax-equivalent net interest income was primarily attributable to a decline in thetax-equivalent loan yield and the realization of lower levels of loan accretion from purchase accounting marks. Thetax-equivalent net interest margin for the three months ended March 31, 2020, decreased to 3.60% from 3.86% for the comparable period of 2019. Thetax-equivalent net interest margin for the three months ended March 31, excluding purchase accounting marks would have been 3.53% in 2020 and 3.67% in 2019. Thetax-equivalent yield on the loan portfolio decreased to 4.64% in 2020 compared to 5.02% in 2019. Thetax-equivalent loan yield excluding the loan accretion would have been 4.58% in the first three months of 2020 compared to 4.82% for the same period last year. The actions taken by the Federal Open Market Committee in March 2020 to reduce its target federal funds rate by 150 basis points also impacted the loan portfolio yield as it had a corresponding adverse effect on our floating and adjustable rate loans. Investments yielded 2.85% on atax-equivalent basis in the first quarter of 2020 compared to 3.10% for the same period last year. For the three months ended March 31, the cost of deposits decreased 11 basis points to 0.90% in 2020 from 1.01% in 2019. Loans, net averaged $874.4 million in 2020 and $886.8 million in 2019. Average investments totaled $82.0 million in 2020 and $108.3 million in 2019. Average interest-bearing liabilities decreased to $807.9 million in 2020 from $842.6 million in 2019.
The provision for loan losses totaled $1,800 thousand for the quarter ended March 31, 2020, compared to $583 thousand for the same period in 2019. The increase in the provision for loan losses was a result of loan growth and increases in historical loss factors primarily due to thecharge-off of one unsecured credit associated with a fraudulent borrower and in qualitative factors related to the reserve build associated with the effects ofCOVID-19 as of the balance sheet date.
For the quarter ended March 31, noninterest income totaled $2,930 thousand in 2020, an increase of $1,119 thousand from $1,811 thousand in 2019. The increase was primarily attributable to recognizing a $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. Service charges, fees and commissions increased $328 thousand as a result of recognizing a $130 thousand loan swap fee and reaping the benefits of implementing strategic initiates to enhance service fee income in the fourth quarter of 2019. Trust and wealth management income declined for the first quarter of 2020 by $47 thousand and $27 thousand, respectively, when compared against the first quarter of 2019 due primarily to the impact ofCOVID-19.
Noninterest expense decreased $2,752 thousand, or 23.0%, to $9,212 thousand for the three months ended March 31, 2020, from $11,964 thousand for the same period last year. The decrease was primarily due to $2.2
million in nonrecurring expense from an executive separation agreement recognized in the first quarter of 2019. Net occupancy expense increased $91 thousand, or 8.4%, to $1,180 thousand for the first quarter of 2020 from $1,089 thousand for the same period last year. Higher costs related to building and equipment maintenance and repairs caused the increase. Other expenses decreased $227 thousand or 7.5% to $2,817 thousand in the first quarter of 2020 compared to $3,044 thousand for the same period last year. The decrease is a result of implementing cost savings initiatives in the latter part of 2019.
BALANCE SHEET REVIEW
Total assets, loans, net, and deposits totaled $1.1 billion, $887.4 million, and $958.5 million at March 31, 2020. For the three months ended March 31, 2020, total assets, loans and deposits increased $37.1 million, $35.3 million and $18.0 million, respectively. All major segments of the loan portfolio increased in the first quarter of 2020. Business lending, including commercial and commercial real estate loans, increased $23.1 million while retail lending, including residential mortgages and consumer loans, increased $1.5 million for the three months ended March 31, 2020. For this same period, construction lending increased $10.7 million. Loans increased due to originations in new and existing markets in the first quarter of 2020 from the addition of loan officers hired in the latter part of 2019. Total investments decreased to $68.4 million at March 31, 2020, compared to $91.2 million at December 31, 2019 as a result of security sales. Total deposits increased $18.0 million in 2020, as noninterest-bearing deposits increased $1.2 million, while interest-bearing deposits increased $16.8 million. As a percentage of total deposits, noninterest-bearing deposits amounted to 15.5% at March 31, 2020 and 15.7% at December 31, 2019.
Stockholders’ equity totaled $118.4 million, or $12.82 per share, at March 31, 2020, $118.1 million, or $12.81 per share, at December 31, 2019, and $113.5 million, or $12.40 per share, at March 31, 2019. The increase in equity in the three months ended March 31, 2020 was due primarily to a change in accumulated other comprehensive income and the issuance of common share under the Company’s ESPP, DRP and 401K plans. Tangible stockholders’ equity per common share increased to $9.87 at March 31, 2020, compared to $9.33 at March 31, 2019. Dividends declared for the first quarter of 2020 amounted to $0.075 per share representing a dividend yield of 4.6% based on the Company’s closing market price on March 31, 2020.
ASSET QUALITY REVIEW
Nonperforming assets were $5.7 million, or 0.65% of loans, net, and foreclosed assets at March 31, 2020 compared to $5.1 million or 0.60% at December 31, 2019. Adjusting for accruing restructured loans, nonperforming assets were $3.1 million, or 0.35% of loans, net and foreclosed assets at March 31, 2020, and $2.4 million, or 0.28%, at December 31, 2019. The allowance for loan losses equaled $8.3 million, or 0.93%, of loans, net, at March 31, 2020, compared to $7.5 million, or 0.88%, at December 31, 2019. Adding accounting marks for purchased credit impaired loans to the allowance for loan losses would result in a ratio of 1.04% as a percentage of loans, net at March 31, 2020. The coverage ratio, the allowance for loan losses as a percentage of nonperforming assets, was 144.0% at March 31, 2020 versus 148.0% at December 31, 2019. Excluding accruing restructured loans, the coverage ratio would be 267.5% at March 31, 2020. Loanscharged-off, net of recoveries, for the three months ended March 31, 2020, equaled $1,065 thousand, compared to $445 thousand for the same period last year.
The economic slowdown associated withCOVID-19 is expected to have an overall adverse impact on loan portfolios, especially those segments associated with hospitality restaurant and entertainment industries. This segment represented approximately 8.0% of our total loans, net at March 31, 2020. The severity of the effect ofCOVID-19 on our operations and loan portfolio is difficult to determine at this time. Similar to most financial institutions, we are anticipating delinquency levels to heighten in the near term. This level of increase may not be as severe as originally expected based on recent actions to allow granting of loan modification regarding deferrals of loan payments to borrowers without requiring the loans to be classified as nonperforming assets. In addition, the recently issued Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which includes the Paycheck Protection Program (“PPP”), a $349 billion loan program which offers small businesses and self-employed individuals 100% guaranteed loans and loan forgiveness to stay in business during theCOVID-19 pandemic should help to mitigate our delinquency levels. The PPP loans are to be used primarily for employment-sustaining
payroll costs and benefits, as well as other significant costs including the small businesses’ rent, mortgage, and utilities. Riverview is a Small Business Administration (“SBA”) lender and is participating in the PPP program. Offsetting these positive influences is the fact that most states, including the Commonwealth of Pennsylvania, have placed significant restrictions onnon-essential businesses as well as enforcing social distancing. The longer these restrictions are in place the more severe the effects of the economic slowdown will be and the greater the negative consequences for our loan customers which, in turn, could adversely affect the Company’s financial condition, liquidity and results of operations.
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/.
SOURCE: Riverview Financial Corporation
Contact: Scott A. Seasock, CFO at 717.827.4039 orsseasock@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. Most recently in December 2019, a novel strain of coronavirus surfaced in Wuhan, China, and has 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 Forms10-K and10-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.
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 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 months ended March 31, 2020 and 2019, 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)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| 2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||
Key performance data: | ||||||||||||||||||||
Per common share data: | ||||||||||||||||||||
Net income (loss) | $ | 0.07 | $ | 0.14 | $ | 0.25 | $ | 0.16 | $ | (0.08 | ) | |||||||||
Core net income (1) | $ | 0.00 | $ | 0.13 | $ | 0.25 | $ | 0.16 | $ | 0.12 | ||||||||||
Cash dividends declared | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.10 | $ | 0.10 | ||||||||||
Book value | $ | 12.82 | $ | 12.81 | $ | 12.77 | $ | 12.62 | $ | 12.40 | ||||||||||
Tangible book value (1) | $ | 9.87 | $ | 9.83 | $ | 9.75 | $ | 9.58 | $ | 9.33 | ||||||||||
Market value: | ||||||||||||||||||||
High | $ | 13.60 | $ | 12.50 | $ | 11.68 | $ | 11.44 | $ | 13.00 | ||||||||||
Low | $ | 5.25 | $ | 11.10 | $ | 9.90 | $ | 10.50 | $ | 10.90 | ||||||||||
Closing | $ | 6.47 | $ | 12.49 | $ | 11.68 | $ | 10.50 | $ | 11.50 | ||||||||||
Market capitalization | $ | 59,757 | $ | 115,116 | $ | 107,252 | $ | 96,261 | $ | 105,278 | ||||||||||
Common shares outstanding | 9,236,039 | 9,216,616 | 9,182,565 | 9,167,670 | 9,154,599 | |||||||||||||||
Selected ratios: | ||||||||||||||||||||
Return on average stockholders’ equity | 2.14 | % | 4.28 | % | 7.62 | % | 5.00 | % | (2.46 | )% | ||||||||||
Core return on average stockholders’ equity(1) | (0.04 | )% | 4.09 | % | 7.76 | % | 5.00 | % | 3.93 | % | ||||||||||
Return on average tangible stockholders’ equity(1) | 2.77 | % | 5.59 | % | 9.97 | % | 6.61 | % | (3.27 | )% | ||||||||||
Core return on average tangible stockholders’ equity(1) | (0.05 | )% | 5.33 | % | 10.16 | % | 6.61 | % | 5.23 | % | ||||||||||
Tangible stockholders’ equity to tangible assets(1) | 8.36 | % | 8.61 | % | 8.28 | % | 8.04 | % | 7.69 | % | ||||||||||
Return on average assets | 0.23 | % | 0.46 | % | 0.81 | % | 0.51 | % | (0.25 | )% | ||||||||||
Core return on average assets(1) | 0.00 | % | 0.44 | % | 0.82 | % | 0.51 | % | 0.39 | % | ||||||||||
Stockholders’ equity to total assets | 10.60 | % | 10.94 | % | 10.57 | % | 10.33 | % | 9.97 | % | ||||||||||
Efficiency ratio(2) | 82.49 | % | 84.24 | % | 69.11 | % | 79.90 | % | 100.74 | % | ||||||||||
Nonperforming assets to loans, net, and foreclosed assets | 0.65 | % | 0.60 | % | 0.66 | % | 0.56 | % | 0.68 | % | ||||||||||
Net charge-offs to average loans, net | 0.49 | % | (0.12 | )% | 0.43 | % | 0.05 | % | 0.20 | % | ||||||||||
Allowance for loan losses to loans, net | 0.93 | % | 0.88 | % | 0.80 | % | 0.79 | % | 0.74 | % | ||||||||||
Earning assets yield (FTE)(3) | 4.39 | % | 4.54 | % | 5.31 | % | 5.07 | % | 4.73 | % | ||||||||||
Cost of funds | 0.95 | % | 0.99 | % | 1.05 | % | 1.07 | % | 1.06 | % | ||||||||||
Net interest spread (FTE)(3) | 3.44 | % | 3.55 | % | 4.26 | % | 4.00 | % | 3.67 | % | ||||||||||
Net interest margin (FTE)(3) | 3.60 | % | 3.74 | % | 4.46 | % | 4.20 | % | 3.86 | % | ||||||||||
| (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)
| Three Months Ended | Mar 31 2020 | Mar 31 2019 | ||||||
Interest income: | ||||||||
Interest and fees on loans: | ||||||||
Taxable | $ | 9,782 | $ | 10,688 | ||||
Tax-exempt | 245 | 230 | ||||||
Interest and dividends on investment securities: | ||||||||
Taxable | 535 | 740 | ||||||
Tax-exempt | 37 | 69 | ||||||
Dividends | ||||||||
Interest on interest-bearing deposits in other banks | 89 | 231 | ||||||
Interest on federal funds sold | ||||||||
Total interest income | 10,688 | 11,958 | ||||||
Interest expense: | ||||||||
Interest on deposits | 1,789 | 2,073 | ||||||
Interest on short-term borrowings | 5 | |||||||
Interest on long-term debt | 123 | 134 | ||||||
Total interest expense | 1,917 | 2,207 | ||||||
Net interest income | 8,771 | 9,751 | ||||||
Provision for loan losses | 1,800 | 583 | ||||||
Net interest income after provision for loan losses | 6,971 | 9,168 | ||||||
Noninterest income: | ||||||||
Service charges, fees and commissions | 1,381 | 1,053 | ||||||
Commissions and fees on fiduciary activities | 213 | 260 | ||||||
Wealth management income | 220 | 247 | ||||||
Mortgage banking income | 108 | 106 | ||||||
Life insurance investment income | 193 | 187 | ||||||
Net gain (loss) on sale of investment securitiesavailable-for-sale | 815 | (42 | ) | |||||
Total noninterest income | �� | 2,930 | 1,811 | |||||
Noninterest expense: | ||||||||
Salaries and employee benefits expense | 5,056 | 7,510 | ||||||
Net occupancy and equipment expense | 1,180 | 1,089 | ||||||
Amortization of intangible assets | 170 | 194 | ||||||
Net cost of operation of other real estate owned | (11 | ) | 127 | |||||
Other expenses | 2,817 | 3,044 | ||||||
Total noninterest expense | 9,212 | 11,964 | ||||||
Income (loss) before income taxes | 689 | (985 | ) | |||||
Income tax expense (benefit) | 56 | (298 | ) | |||||
Net income (loss) | $ | 633 | $ | (687 | ) | |||
Other comprehensive income: | ||||||||
Unrealized gain on investment securitiesavailable-for-sale | $ | 1,053 | $ | 1,023 | ||||
Reclassification adjustment for (gain) loss included in net income | (815 | ) | 42 | |||||
Change in pension liability | ||||||||
Income tax expense related to other comprehensive income | 50 | 224 | ||||||
Other comprehensive income, net of income taxes | 188 | 841 | ||||||
Comprehensive income | $ | 821 | $ | 154 | ||||
Per common share data: | ||||||||
Net income: | ||||||||
Basic | $ | 0.07 | $ | (0.08 | ) | |||
Diluted | $ | 0.07 | $ | (0.08 | ) | |||
Average common shares outstanding: | ||||||||
Basic | 9,223,445 | 9,143,316 | ||||||
Diluted | 9,233,060 | 9,143,316 | ||||||
Cash dividends declared | $ | 0.08 | $ | 0.10 | ||||
Riverview Financial Corporation
Consolidated Statements of Income (Loss)
(In thousands, except per share data)
| Three months ended | Mar 31 2020 | Dec 31 2019 | Sep 30 2019 | Jun 30 2019 | Mar 31 2019 | |||||||||||||||
Interest income: | ||||||||||||||||||||
Interest and fees on loans: | ||||||||||||||||||||
Taxable | $ | 9,782 | $ | 10,216 | $ | 12,283 | $ | 11,680 | $ | 10,688 | ||||||||||
Tax-exempt | 245 | 257 | 259 | 233 | 230 | |||||||||||||||
Interest and dividends on investment securitiesavailable-for-sale: | ||||||||||||||||||||
Taxable | 535 | 622 | 641 | 732 | 740 | |||||||||||||||
Tax-exempt | 37 | 41 | 43 | 47 | 69 | |||||||||||||||
Dividends | ||||||||||||||||||||
Interest on interest-bearing deposits in other banks | 89 | 119 | 200 | 216 | 231 | |||||||||||||||
Interest on federal funds sold | ||||||||||||||||||||
Total interest income | 10,688 | 11,255 | 13,426 | 12,908 | 11,958 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Interest on deposits | 1,789 | 1,887 | 2,027 | 2,099 | 2,073 | |||||||||||||||
Interest on short-term borrowings | 5 | |||||||||||||||||||
Interest on long-term debt | 123 | 122 | 127 | 131 | 134 | |||||||||||||||
Total interest expense | 1,917 | 2,009 | 2,154 | 2,230 | 2,207 | |||||||||||||||
Net interest income | 8,771 | 9,246 | 11,272 | 10,678 | 9,751 | |||||||||||||||
Provision for loan losses | 1,800 | 156 | 1,049 | 618 | 583 | |||||||||||||||
Net interest income after provision for loan losses | 6,971 | 9,090 | 10,223 | 10,060 | 9,168 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Service charges, fees and commissions | 1,381 | 1,689 | 1,129 | 1,315 | 1,053 | |||||||||||||||
Commissions and fees on fiduciary activities | 213 | 225 | 314 | 281 | 260 | |||||||||||||||
Wealth management income | 220 | 231 | 226 | 236 | 247 | |||||||||||||||
Mortgage banking income | 108 | 210 | 151 | 100 | 106 | |||||||||||||||
Life insurance investment income | 193 | 189 | 193 | 194 | 187 | |||||||||||||||
Net gain (loss) on sale of investment securitiesavailable-for-sale | 815 | 73 | (53 | ) | (42 | ) | ||||||||||||||
Total noninterest income | 2,930 | 2,617 | 1,960 | 2,126 | 1,811 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits expense | 5,056 | 5,273 | 5,232 | 5,830 | 7,510 | |||||||||||||||
Net occupancy and equipment expense | 1,180 | 1,183 | 1,041 | 1,044 | 1,089 | |||||||||||||||
Amortization of intangible assets | 170 | 191 | 194 | 194 | 194 | |||||||||||||||
Net cost (benefit) of operation of other real estate owned | (11 | ) | 47 | (15 | ) | (92 | ) | 127 | ||||||||||||
Other expenses | 2,817 | 3,495 | 2,979 | 3,508 | 3,044 | |||||||||||||||
Total noninterest expense | 9,212 | 10,189 | 9,431 | 10,484 | 11,964 | |||||||||||||||
Income (loss) before income taxes | 689 | 1,518 | 2,752 | 1,702 | (985 | ) | ||||||||||||||
Income tax expense (benefit) | 56 | 245 | 486 | 268 | (298 | ) | ||||||||||||||
Net income (loss) | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Unrealized gain (loss) on investment securitiesavailable-for-sale | $ | 1,053 | $ | 134 | $ | (256 | ) | $ | 1,936 | $ | 1,023 | |||||||||
Reclassification adjustment for (gain) loss included in net income | (815 | ) | (73 | ) | 53 | 42 | ||||||||||||||
Change in pension liability | 16 | |||||||||||||||||||
Income tax expense (benefit) related to other comprehensive income (loss) | 50 | 16 | (42 | ) | 406 | 224 | ||||||||||||||
Other comprehensive income (loss), net of income taxes | 188 | 61 | (161 | ) | 1,530 | 841 | ||||||||||||||
Comprehensive income (loss) | $ | 821 | $ | 1,334 | $ | 2,105 | $ | 2,964 | $ | 154 | ||||||||||
Per common share data: | ||||||||||||||||||||
Net income (loss): | ||||||||||||||||||||
Basic | $ | 0.07 | $ | 0.14 | $ | 0.25 | $ | 0.16 | $ | (0.08 | ) | |||||||||
Diluted | $ | 0.07 | $ | 0.14 | $ | 0.25 | $ | 0.16 | $ | (0.08 | ) | |||||||||
Average common shares outstanding: | ||||||||||||||||||||
Basic | 9,223,445 | 9,191,551 | 9,173,901 | 9,160,290 | 9,143,316 | |||||||||||||||
Diluted | 9,233,060 | 9,210,646 | 9,181,076 | 9,172,992 | 9,143,316 | |||||||||||||||
Cash dividends declared | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.10 | $ | 0.10 | ||||||||||
Riverview Financial Corporation
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)
| Three months ended | Mar 31 2020 | Dec 31 2019 | Sep 30 2019 | Jun 30 2019 | Mar 31 2019 | |||||||||||||||
Net interest income: | ||||||||||||||||||||
Interest income | ||||||||||||||||||||
Loans, net: | ||||||||||||||||||||
Taxable | $ | 9,782 | $ | 10,216 | $ | 12,283 | $ | 11,680 | $ | 10,688 | ||||||||||
Tax-exempt | 310 | 325 | 328 | 295 | 291 | |||||||||||||||
Total loans, net | 10,092 | 10,541 | 12,611 | 11,975 | 10,979 | |||||||||||||||
Investments: | ||||||||||||||||||||
Taxable | 535 | 622 | 641 | 732 | 740 | |||||||||||||||
Tax-exempt | 47 | 52 | 54 | 60 | 87 | |||||||||||||||
Total investments | 582 | 674 | 695 | 792 | 827 | |||||||||||||||
Interest on interest-bearing balances in other banks | 89 | 119 | 200 | 216 | 231 | |||||||||||||||
Federal funds sold | ||||||||||||||||||||
Total interest income | 10,763 | 11,334 | 13,506 | 12,983 | 12,037 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 1,789 | 1,887 | 2,027 | 2,099 | 2,073 | |||||||||||||||
Short-term borrowings | 5 | |||||||||||||||||||
Long-term debt | 123 | 122 | 127 | 131 | 134 | |||||||||||||||
Total interest expense | 1,917 | 2,009 | 2,154 | 2,230 | 2,207 | |||||||||||||||
Net interest income | $ | 8,846 | $ | 9,325 | $ | 11,352 | $ | 10,753 | $ | 9,830 | ||||||||||
Yields on earning assets: | ||||||||||||||||||||
Loans, net: | ||||||||||||||||||||
Taxable | 4.69 | % | 4.93 | % | 5.77 | % | 5.49 | % | 5.09 | % | ||||||||||
Tax-exempt | 3.50 | % | 3.47 | % | 3.47 | % | 3.41 | % | 3.34 | % | ||||||||||
Total loans, net | 4.64 | % | 4.86 | % | 5.67 | % | 5.41 | % | 5.02 | % | ||||||||||
Investments: | ||||||||||||||||||||
Taxable | 2.78 | % | 2.69 | % | 2.90 | % | 3.07 | % | 3.09 | % | ||||||||||
Tax-exempt | 4.08 | % | 4.19 | % | 4.08 | % | 3.67 | % | 3.15 | % | ||||||||||
Total investments | 2.85 | % | 2.77 | % | 2.96 | % | 3.11 | % | 3.10 | % | ||||||||||
Interest-bearing balances with banks | 1.17 | % | 1.39 | % | 2.31 | % | 2.36 | % | 2.54 | % | ||||||||||
Federal funds sold | ||||||||||||||||||||
Total earning assets | 4.39 | % | 4.54 | % | 5.31 | % | 5.07 | % | 4.73 | % | ||||||||||
Costs of interest-bearing liabilities: | ||||||||||||||||||||
Deposits | 0.90 | % | 0.94 | % | 0.99 | % | 1.02 | % | 1.01 | % | ||||||||||
Short-term borrowings | 2.03 | % | ||||||||||||||||||
Long-term debt | 4.19 | % | 6.95 | % | 7.26 | % | 7.59 | % | 7.87 | % | ||||||||||
Total interest-bearing liabilities | 0.95 | % | 0.99 | % | 1.05 | % | 1.07 | % | 1.06 | % | ||||||||||
Net interest spread | 3.44 | % | 3.55 | % | 4.26 | % | 4.00 | % | 3.67 | % | ||||||||||
Net interest margin | 3.60 | % | 3.74 | % | 4.46 | % | 4.20 | % | 3.86 | % | ||||||||||
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| At period end | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||
Assets: | ||||||||||||||||||||
Cash and due from banks | $ | 12,128 | $ | 11,838 | $ | 13,108 | $ | 11,354 | $ | 12,278 | ||||||||||
Interest-bearing balances in other banks | 61,107 | 38,510 | 16,733 | 29,621 | 55,823 | |||||||||||||||
Federal funds sold | ||||||||||||||||||||
Investment securitiesavailable-for-sale | 68,402 | 91,247 | 106,637 | 100,254 | 100,684 | |||||||||||||||
Loans held for sale | 272 | 81 | 336 | 170 | 695 | |||||||||||||||
Loans, net | 887,449 | 852,109 | 883,506 | 889,305 | 878,070 | |||||||||||||||
Less: allowance for loan losses | 8,251 | 7,516 | 7,097 | 7,002 | 6,486 | |||||||||||||||
Net loans | 879,198 | 844,593 | 876,409 | 882,303 | 871,584 | |||||||||||||||
Premises and equipment, net | 18,875 | 17,852 | 18,115 | 18,144 | 18,355 | |||||||||||||||
Accrued interest receivable | 2,589 | 2,414 | 2,751 | 2,870 | 3,018 | |||||||||||||||
Goodwill | 24,754 | 24,754 | 24,754 | 24,754 | 24,754 | |||||||||||||||
Other intangible assets, net | 2,566 | 2,736 | 2,927 | 3,121 | 3,315 | |||||||||||||||
Other assets | 47,152 | 45,929 | 47,989 | 47,607 | 48,206 | |||||||||||||||
Total assets | $ | 1,117,043 | $ | 1,079,954 | $ | 1,109,759 | $ | 1,120,198 | $ | 1,138,712 | ||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 148,633 | $ | 147,405 | $ | 161,211 | $ | 160,407 | $ | 164,880 | ||||||||||
Interest-bearing | 809,870 | 793,075 | 808,372 | 819,293 | 836,149 | |||||||||||||||
Total deposits | 958,503 | 940,480 | 969,583 | 979,700 | 1,001,029 | |||||||||||||||
Short-term borrowings | ||||||||||||||||||||
Long-term debt | 26,992 | 6,971 | 6,951 | 6,932 | 6,912 | |||||||||||||||
Accrued interest payable | 424 | 435 | 432 | 445 | 475 | |||||||||||||||
Other liabilities | 12,683 | 13,958 | 15,538 | 17,443 | 16,806 | |||||||||||||||
Total liabilities | 998,602 | 961,844 | 992,504 | 1,004,520 | 1,025,222 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 102,386 | 102,206 | 101,807 | 101,644 | 101,500 | |||||||||||||||
Capital surplus | 134 | 112 | 300 | 304 | 307 | |||||||||||||||
Retained earnings | 16,081 | 16,140 | 15,557 | 13,978 | 13,461 | |||||||||||||||
Accumulated other comprehensive loss | (160 | ) | (348 | ) | (409 | ) | (248 | ) | (1,778 | ) | ||||||||||
Total stockholders’ equity | 118,441 | 118,110 | 117,255 | 115,678 | 113,490 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,117,043 | $ | 1,079,954 | $ | 1,109,759 | $ | 1,120,198 | $ | 1,138,712 | ||||||||||
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| Average quarterly balances | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||
Assets: | ||||||||||||||||||||
Loans, net: | ||||||||||||||||||||
Taxable | $ | 838,825 | $ | 822,667 | $ | 845,103 | $ | 853,329 | $ | 851,515 | ||||||||||
Tax-exempt | 35,595 | 37,194 | 37,523 | 34,714 | 35,298 | |||||||||||||||
Total loans, net | 874,420 | 859,861 | 882,626 | 888,043 | 886,813 | |||||||||||||||
Investments: | ||||||||||||||||||||
Taxable | 77,400 | 91,665 | 87,753 | 95,577 | 97,041 | |||||||||||||||
Tax-exempt | 4,628 | 4,929 | 5,257 | 6,558 | 11,215 | |||||||||||||||
Total investments | 82,028 | 96,594 | 93,010 | 102,135 | 108,256 | |||||||||||||||
Interest-bearing balances with banks | 30,490 | 33,882 | 34,323 | 36,780 | 36,953 | |||||||||||||||
Federal funds sold | ||||||||||||||||||||
Total earning assets | 986,938 | 990,337 | 1,009,959 | 1,026,958 | 1,032,022 | |||||||||||||||
Other assets | 98,407 | 99,930 | 101,242 | 99,923 | 97,628 | |||||||||||||||
Total assets | $ | 1,085,345 | $ | 1,090,267 | $ | 1,111,201 | $ | 1,126,881 | $ | 1,129,650 | ||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | $ | 795,084 | $ | 797,577 | $ | 810,430 | $ | 829,003 | $ | 835,687 | ||||||||||
Noninterest-bearing | 144,630 | 152,596 | 159,320 | 159,069 | 156,735 | |||||||||||||||
Total deposits | 939,714 | 950,173 | 969,750 | 988,072 | 992,422 | |||||||||||||||
Short-term borrowings | 989 | |||||||||||||||||||
Long-term debt | 11,817 | 6,962 | 6,942 | 6,922 | 6,902 | |||||||||||||||
Other liabilities | 13,668 | 15,179 | 16,581 | 16,944 | 17,006 | |||||||||||||||
Total liabilities | 966,188 | 972,314 | 993,273 | 1,011,938 | 1,016,330 | |||||||||||||||
Stockholders’ equity | 119,157 | 117,953 | 117,928 | 114,943 | 113,320 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,085,345 | $ | 1,090,267 | $ | 1,111,201 | $ | 1,126,881 | $ | 1,129,650 | ||||||||||
Riverview Financial Corporation
Asset Quality Data
(In thousands)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| 2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||
At quarter end: | ||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||
Nonaccrual loans | $ | 2,048 | $ | 2,287 | $ | 2,927 | $ | 2,165 | $ | 2,643 | ||||||||||
Accruing restructured loans | 2,646 | 2,666 | 2,692 | 2,715 | 2,731 | |||||||||||||||
Accruing loans past due 90 days or more | 691 | 45 | 100 | 52 | 122 | |||||||||||||||
Foreclosed assets | 346 | 82 | 87 | 86 | 461 | |||||||||||||||
Total nonperforming assets | $ | 5,731 | $ | 5,080 | $ | 5,806 | $ | 5,018 | $ | 5,957 | ||||||||||
Three months ended: | ||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning balance | $ | 7,516 | $ | 7,097 | $ | 7,002 | $ | 6,486 | $ | 6,348 | ||||||||||
Charge-offs | 1,123 | 237 | 985 | 142 | 520 | |||||||||||||||
Recoveries | 58 | 500 | 31 | 40 | 75 | |||||||||||||||
Provision for loan losses | 1,800 | 156 | 1,049 | 618 | 583 | |||||||||||||||
Ending balance | $ | 8,251 | $ | 7,516 | $ | 7,097 | $ | 7,002 | $ | 6,486 | ||||||||||
Riverview Financial Corporation
Reconciliation ofNon-GAAP Financial Measures
(In thousands, except per share data)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| Three months ended: | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||
Core net income (loss) per common share: | ||||||||||||||||||||
Net income (loss) | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Less: Gain (loss) on sale of investment securities, net of tax | 644 | 58 | (42 | ) | (33 | ) | ||||||||||||||
Add: Acquisition related expenses, net of tax | ||||||||||||||||||||
Add: Executive separation expense, net of tax | 1,752 | |||||||||||||||||||
Net income (loss) - Core | $ | (11 | ) | $ | 1,215 | $ | 2,308 | $ | 1,434 | $ | 1,098 | |||||||||
Average common shares outstanding | 9,223,445 | 9,191,551 | 9,173,901 | 9,160,290 | 9,143,316 | |||||||||||||||
Core net income (loss) per common share | $ | 0.00 | $ | 0.13 | $ | 0.25 | $ | 0.16 | $ | 0.12 | ||||||||||
Tangible book value: | ||||||||||||||||||||
Total stockholders’ equity | $ | 118,441 | $ | 118,110 | $ | 117,255 | $ | 115,678 | $ | 113,490 | ||||||||||
Less: Goodwill | 24,754 | 24,754 | 24,754 | 24,754 | 24,754 | |||||||||||||||
Less: Other intangible assets, net | 2,566 | 2,736 | 2,927 | 3,121 | 3,315 | |||||||||||||||
Total tangible stockholders’ equity | $ | 91,121 | $ | 90,620 | $ | 89,574 | $ | 87,803 | $ | 85,421 | ||||||||||
Common shares outstanding | 9,236,039 | 9,216,616 | 9,182,565 | 9,167,670 | 9,154,599 | |||||||||||||||
Tangible book value per share | $ | 9.87 | $ | 9.83 | $ | 9.75 | $ | 9.58 | $ | 9.33 | ||||||||||
Tangible stockholders’ equity to tangible assets: | ||||||||||||||||||||
Total stockholders’ equity | $ | 118,441 | $ | 118,110 | $ | 117,255 | $ | 115,678 | $ | 113,490 | ||||||||||
Less: Goodwill | 24,754 | 24,754 | 24,754 | 24,754 | 24,754 | |||||||||||||||
Less: Other intangible assets, net | 2,566 | 2,736 | 2,927 | 3,121 | 3,315 | |||||||||||||||
Total tangible stockholders’ equity | $ | 91,121 | $ | 90,620 | $ | 89,574 | $ | 87,803 | $ | 85,421 | ||||||||||
Total assets | $ | 1,117,043 | $ | 1,079,954 | $ | 1,109,759 | $ | 1,120,198 | $ | 1,138,712 | ||||||||||
Less: Goodwill | 24,754 | 24,754 | 24,754 | 24,754 | 24,754 | |||||||||||||||
Less: Other intangible assets, net | 2,566 | 2,736 | 2,927 | 3,121 | 3,315 | |||||||||||||||
Total tangible assets | $ | 1,089,723 | $ | 1,052,464 | $ | 1,082,078 | $ | 1,092,323 | $ | 1,110,643 | ||||||||||
Tangible stockholders’ equity to tangible assets | 8.36 | % | 8.61 | % | 8.28 | % | 8.04 | % | 7.69 | % | ||||||||||
Core return on average stockholders’ equity: | ||||||||||||||||||||
Net income (loss) GAAP | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Less: Gain (loss) on sale of investment securities, net of tax | 644 | 58 | (42 | ) | (33 | ) | ||||||||||||||
Add: Acquisition related expenses, net of tax | ||||||||||||||||||||
Add: Executive separation expense, net of tax | 1,752 | |||||||||||||||||||
Net income (loss) - Core | $ | (11 | ) | $ | 1,215 | $ | 2,308 | $ | 1,434 | $ | 1,098 | |||||||||
Average stockholders’ equity | $ | 119,157 | $ | 117,953 | $ | 117,928 | $ | 114,943 | $ | 113,320 | ||||||||||
Core return on average stockholders’ equity | (0.04 | )% | 4.09 | % | 7.76 | % | 5.00 | % | 3.93 | % | ||||||||||
Return on average tangible equity: | ||||||||||||||||||||
Net income (loss) GAAP | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Average stockholders’ equity | $ | 119,157 | $ | 117,953 | $ | 117,928 | $ | 114,943 | $ | 113,320 | ||||||||||
Less: average intangibles | 27,401 | 27,579 | 27,775 | 27,968 | 28,164 | |||||||||||||||
Average tangible stockholders’ equity | $ | 91,756 | $ | 90,374 | $ | 90,153 | $ | 86,975 | $ | 85,156 | ||||||||||
Return on average tangible stockholders’ equity | 2.77 | % | 5.59 | % | 9.97 | % | 6.61 | % | (3.27 | )% | ||||||||||
Riverview Financial Corporation
Reconciliation ofNon-GAAP Financial Measures
(In thousands, except per share data)
| Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||
| Three months ended: | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||
Core return on average tangible stockholders’ equity: | ||||||||||||||||||||
Net income (loss) GAAP | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Less: Gain (loss) on sale of investment securities, net of tax | 644 | 58 | (42 | ) | (33 | ) | ||||||||||||||
Add: Acquisition related expenses, net of tax | ||||||||||||||||||||
Add: Executive separation expense, net of tax | 1,752 | |||||||||||||||||||
Net income (loss) - Core | $ | (11 | ) | $ | 1,215 | $ | 2,308 | $ | 1,434 | $ | 1,098 | |||||||||
Average stockholders’ equity | $ | 119,157 | $ | 117,953 | $ | 117,928 | $ | 114,943 | $ | 113,320 | ||||||||||
Less: average intangibles | 27,401 | 27,579 | 27,775 | 27,968 | 28,164 | |||||||||||||||
Average tangible stockholders’ equity | $ | 91,756 | $ | 90,374 | $ | 90,153 | $ | 86,975 | $ | 85,156 | ||||||||||
Core return on average tangible stockholders’ equity | (0.05 | )% | 5.33 | % | 10.16 | % | 6.61 | % | 5.23 | % | ||||||||||
Core return on average assets: | ||||||||||||||||||||
Net income (loss) GAAP | $ | 633 | $ | 1,273 | $ | 2,266 | $ | 1,434 | $ | (687 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Less: Gain (loss) on sale of investment securities, net of tax | 644 | 58 | (42 | ) | (33 | ) | ||||||||||||||
Add: Acquisition related expenses, net of tax | ||||||||||||||||||||
Add: Executive separation expense, net of tax | 1,752 | |||||||||||||||||||
Net income (loss) - Core | $ | (11 | ) | $ | 1,215 | $ | 2,308 | $ | 1,434 | $ | 1,098 | |||||||||
Average assets | $ | 1,085,345 | $ | 1,090,267 | $ | 1,111,201 | $ | 1,126,881 | $ | 1,129,650 | ||||||||||
Core return on average assets | 0.00 | % | 0.44 | % | 0.82 | % | 0.51 | % | 0.39 | % | ||||||||||
Riverview Financial Corporation
Reconciliation ofNon-GAAP Financial Measures
(In thousands, except per share data)
| Mar 31 | Mar 31 | |||||||
| 2020 | 2019 | |||||||
Three months ended: | ||||||||
Core net income per common share: | ||||||||
Net income (loss) | $ | 633 | $ | (687 | ) | |||
Adjustments: | ||||||||
Less: Gains (loss) on sale of investment securities, net of tax | 644 | (33 | ) | |||||
Add: Acquisition related expenses, net of tax | ||||||||
Add: Executive separation expense, net of tax | 1,752 | |||||||
Net income (loss) - core | $ | (11 | ) | $ | 1,098 | |||
Average common shares outstanding | 9,223,445 | 9,143,316 | ||||||
Core net income (loss) per common share | $ | 0.00 | $ | 0.12 | ||||
