HARRISBURG, Pa., Jan. 28, 2021 /PRNewswire/ -- Riverview Financial
Corporation (the "Company" or "Riverview") (NASDAQ: RIVE), the holding
company for Riverview Bank (the "Bank"), today reported net income
of $1.6 million or $0.17 per basic and diluted weighted average
common share, for the fourth quarter of 2020, compared to net
income of $1.3 million, or
$0.14 per basic and diluted weighted
average common share, for the fourth quarter of 2019. For the
year ended December 31, 2020,
Riverview reported a net loss of
$21.2 million, or $(2.29) per basic and diluted weighted average
common share, compared to net income of $4.3
million, or $0.47 per basic
and diluted weighted average common share, for the same period last
year.
The increase in the Company's earnings for the three months
ended December 31, 2020 as compared
to the same period in 2019 was the result of an increase in loan
income from the recognition of interest and fees earned on Paycheck
Protection Program ("PPP") Loans, lower deposit costs, and the
impact of ongoing efficiency initiatives, including branch office
consolidations. The Company implemented cost reduction strategies
beginning in 2019, and those efforts continued at the end of the
third quarter of 2020 by implementing additional efficiency
initiatives aimed at substantially lowering operating costs.
Partially offsetting these favorable influences was an increase in
the loan loss provision along with the recognition of charges
related to lease payments and the write off of certain property and
equipment on closed offices.
The COVID-19 pandemic continues to place additional pressure on
bank earnings, causing increased emphasis on the need to improve
operational efficiency as a means to mitigate margin compression
and noninterest income reductions. As a result, during the fourth
quarter of 2020, Riverview
continued to evaluate its branch network by utilizing its retail
branch performance and resource allocation analytics. After
evaluating the results, the Company determined to divest four
additional offices by closing two and selling two branch offices.
With respect to the sale, on January 15,
2021, the Company announced the execution of a definitive
agreement whereby AmeriServ Financial, Inc. will acquire Citizens
Neighborhood Bank's ("CNB"), an operating division of Riverview
Bank, branch and deposit customers in Meyersdale, as well as the deposit customers
of CNB's leased branch in the Borough of Somerset. The
transaction is expected to close in the second quarter of 2021,
subject to regulatory approval and other customary closing
conditions. As of the agreement date, the related deposits
total approximately $48 million and
will be acquired for a 3.71% deposit premium.
The decrease in the Company's earnings for the year ended
December 31, 2020 as compared to the
same period in 2019 was primarily the result of a non-cash charge
related to the recognition of goodwill impairment and an increase
in the provision for loan losses, both stemming from the COVID-19
pandemic. The goodwill impairment of $24.8
million had no impact on tangible book value, regulatory
capital ratios, liquidity or the Company's cash balances. For the
year ended December 31, 2020, the
provision for loan losses totaled $6.3
million compared to $2.4
million for the comparable period in 2019. The increase in
the year over year provision for loan losses is the combined result
of year to date 2020 organic loan growth, excluding 100% SBA
guaranteed PPP Loans, and changes in qualitative factors used in
our ALLL model, accounting for increased economic risks and the
direct impact on our customers resulting from the COVID-19 pandemic
as of December 31, 2020. As the
Company continues to evaluate the impact of the COVID-19 pandemic
on our overall financial performance and operations, including its
effects on our loan portfolio, our provision for loan losses may
increase in future periods, which could adversely affect our
results of operations. In addition, the Company recognized
$572 thousand in costs associated
with severance and furlough expenses related to the implementation
of the cost reduction strategy aimed at substantially lowering
ongoing operating costs. Also impacting fourth quarter 2020 results
was the recognition of write downs of fair values on certain held
for sale properties along with lease payments and write offs of
certain property and equipment on closed offices totaling
$1.5 million. The Company's earnings
were further impacted by a $2.4
million reduction of net accretion on acquired assets and
assumed liabilities during the year ended December 31, 2020, as compared to the same
period last year.
The impact of these reductions was offset by the recognition of
interest and fees on the origination of loans pursuant to the PPP
of $4.4 million during the twelve
months ended December 31, 2020. In
addition, the Company recognized $815
thousand net gain on the sale of investment securities to
provide liquidity to fund loan demand and limit exposure to falling
rates through the disposition of adjustable rate securities in the
first quarter of 2020.
In concert with our third quarter 2020 announcement of the
suspension of dividend payments until further notice, we took
additional action to further strengthen the safety and soundness of
the Bank's capital position, support future growth, and
potentially take advantage of future strategic opportunities
focused upon enhancing shareholder value, by successfully
completing a private placement of $25
million of 5.75% Fixed to Floating Rate Subordinated Notes,
due 2030 to certain qualified institutional buyers and accredited
investors on October 6, 2020.
In addition to evaluating its results of operations in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"), Riverview routinely
supplements its evaluation with an analysis of certain non-GAAP
financial measures, such as tangible book value per share and
return on average tangible stockholders' equity. Riverview believes these non-GAAP financial
measures provide information useful to investors in understanding
its operating performance and trends. Where non-GAAP disclosures
are used in this press release, a reconciliation to the comparable
GAAP measures is provided in the accompanying tables. The non-GAAP
financial measures Riverview uses
may differ from the non-GAAP financial measures other financial
institutions use to measure their results of operations.
HIGHLIGHTS
- Reduction in annualized proforma operating costs estimated at
$5.3 million pre-tax, $4.2 million after tax, resulting from additional
actions taken in the fourth quarter of 2020 to improve ongoing
operating efficiencies through back office consolidations and
related reductions in force, coupled with the closure of two
offices and the sale of two additional offices. The majority of
these annual expense reductions will be evident in the first
quarter of 2021.
- Strengthened capital levels through a private placement
issuance of $25 million of Floating
Rate Subordinated Notes at attractive pricing in the current low
interest rate environment.
- Continued reduction in COVID-19 pandemic related loan
deferments during the fourth quarter. As of December 31, 2020, loans in deferment consists of
19 loans totaling $21.9 million,
representing 1.92% of total outstanding loan balances, or 2.46%
excluding outstanding PPP loan balances. The loan deferrals
consist of 10 residential mortgage loans with loan balances
totaling $572 thousand and 9
commercial loans totaling $21.2
million. Total current principal and interest being deferred
for these 19 loans totaled $973
thousand. Comparatively, at September 30, 2020, we granted loan payment
deferrals for 204 loans with aggregate loan balances outstanding
totaling $130.7 million, representing
11.2% of total outstanding loan balances, or 14.6% excluding
outstanding PPP loan balances. Total current principal and
interest deferred for these 204 loans totaled $6.0 million.
- Funded $273.8 million of loans
through the CARES Act Paycheck Protection Program, generating
interest and fees totaling $4.4
million in the twelve months ended December 31, 2020.
- Remaining accrued and unearned Small Business Administration
PPP origination fees total $5.1
million at December 31,
2020.
- Tangible stockholders' equity to tangible assets, excluding PPP
loans, was 8.65% at December 31,
2020.
- Total interest-bearing deposit costs declined to 0.49% for the
fourth quarter 2020 compared to 0.56% for the prior quarter and
0.94% for the same quarter 2019.
- The allowance for loan losses increased $4.7 million to $12.2
million, or 1.37% of loans, net, excluding 100% SBA
guaranteed PPP loan balances, at December
31, 2020 from $7.5 million or
0.88% of loans, net at December 31,
2019.
- Net charge-offs to average loans, net was 0.02% in the fourth
quarter of 2020 as compared to (0.02)% in the third quarter of 2020
and (0.12)% in the fourth quarter of 2019. For the year, net
charge-offs to average loans, net were 0.15% in 2020 and 0.14% in
2019.
- $1.0 million linked quarter
reduction in total non-performing assets comparing December 31, 2020 totals of $12.0 million to September
30, 2020 totals of $13.0
million. Nonaccrual loans declined over the same
period by $1.8 million, or 56%, from
$3.2 million at September 30, 2020 to $1.4
million at December 31,
2020.
- Loans greater than 90 days past due, Nonaccrual, and Foreclosed
Assets ("OREO") totaled $2.0 million
at December 31, 2020, compared to
$3.4 million at September 30, 2020 and $2.4 million at December
31, 2019.
- Despite the impact of low interest rates were able to maintain
our net interest margin as evidenced by a slight decline comparing
the fourth quarter 2020 at 3.21%, to the prior quarter at
3.26%.
- Recorded an improvement in mortgage banking income of
$1.2 million at December 31, 2020 compared to $567 thousand at December
31, 2019.
- Reported a 9.5% year over year reduction in total noninterest
expense, excluding Goodwill Impairment Charges of $24.8 million. Noninterest expense,
excluding goodwill impairment charges, totaled $38.0 million in 2020 compared to $42.1 million in 2019.
- Total interest income improved totaling $12.1 million in the fourth quarter compared to
$11.9 million in the prior quarter
and $11.3 in the same quarter last
year.
- Net interest income for the quarter ended December 31, 2020 totaled $10.4 million, compared to $9.2 million for the comparable quarter of
2019.
- Noninterest bearing deposits increased 18% year over year, from
$147.4 million at December 31, 2019 to $173.6 million at December
31, 2020, demonstrating success in our strategy to place
greater emphasis on growth in lower cost of funds deposit accounts.
Interest bearing deposits increased 6%, and total
deposits increased 8%, over the same period.
"While this may sound counterintuitive, despite the loss we are
reporting for the year ended December 31,
2020, I believe Riverview
enters 2021 stronger than ever," said Brett
D. Fulk, President and Chief Executive Officer. Fulk
continued, "Examining our results, it should be increasingly
evident that our focus on expense reduction, balance sheet
management and credit quality are all yielding desirable results,
and 2021 will be the year we can perform at the level at which I
expect us to perform. This would certainly not be true had we
not focused much of the time and resources necessary to address the
aforementioned areas, making prudent, and sometimes painful,
decisions necessary to position Riverview to report results at a higher level
of financial performance. There is no question that economic
uncertainty remains, and we, like all in our industry, will
likely experience some fallout as the COVID-19 Pandemic
continues to impact our customers and the communities we
serve. Riverview has done,
and shall continue to do, everything it its power to assist our
customers in their time of need, such as active participation in
PPP lending within our communities in a responsible manner,
assisting customers with forgiveness applications for submission to
the SBA, providing direct "COVID relief" low interest rate loans
with no payments due for the first six months following loan
closing to qualified borrowers, waiving fees and late charges on
loan and deposit accounts, as well as offering penalty free
withdrawals for portions of time deposit account balances for
customers that need to access savings during this crisis.
Despite the remaining cloud of uncertainty surrounding the ultimate
impact of the current pandemic on our Company, the early signs of
continuing performance of our credit portfolio, the low level of
remaining deferred loans at year end, coupled with very few
requests for additional deferrals, is encouraging.
Nevertheless, while I am confident in the quality of our credit
portfolio, we increased our Allowance for Loan Loss balances
to 1.37% of loans, net, excluding 100% SBA guaranteed PPP
loan balances, and bolstered our bank capital through an
attractively priced subordinated debt issuance during 2020 to
ensure we are well positioned to handle potential credit losses.
Additionally, our interest expense and aggressive noninterest
expense reduction initiatives have definitely made us a stronger
entity, one that is better positioned to combat continued margin
pressure in light of the current yield curve and interest rate
environment. Fulk concluded, "we will continue our current
dividend suspension policy as retention of earnings remains our
most valuable and inexpensive source of additional capital, and
right now capital preservation and growth, maintaining or
increasing tangible book value per share, is critical. We do,
however, look forward to our ability to change our current dividend
suspension policy as soon as prudent and we are able to do so."
INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the three months ended
December 31, increased to
$10.5 million in 2020 from
$9.3 million in 2019. The increase in
tax-equivalent net interest income was primarily attributable to
the recognition of interest and fees earned on PPP Loans and lower
deposit costs offset partially by a decline in the tax-equivalent
loan yield and the realization of lower levels of loan accretion
from purchase accounting marks established from previous M&A
activity. The tax-equivalent net interest margin for the three
months ended December 31, 2020,
decreased to 3.21% from 3.74% for the comparable period of 2019.
The tax-equivalent net interest margin, excluding income and fees
earned on PPP loans, would have been 3.47% in the fourth quarter of
2020. The tax-equivalent yield on the loan portfolio decreased to
3.98% in the fourth quarter of 2020 compared to 4.86% in fourth
quarter of 2019. The actions taken by the Federal Open Market
Committee in March 2020 to reduce its
target federal funds rate by 150 basis points impacted the loan
portfolio yield as it had a corresponding adverse effect on our
floating and adjustable rate loans along with lower yields on new
originations compared to those on payments and prepayment on
existing loans. Also influencing the decline was recognizing the
lower yield earned on the addition of PPP loans. The yield earned
on PPP loans from interest and fees was 2.21% in the fourth quarter
of 2020. Investments yielded 2.22% on a tax-equivalent basis in the
fourth quarter of 2020 compared to 2.77% for the same period last
year. For the three months ended December
31, the cost of deposits decreased 45 basis points to 0.49%
in 2020 from 0.94% in 2019. Loans, net averaged $1.2 billion in the fourth quarter of 2020 and
$859.9 million in the fourth quarter
of 2019. Average investments totaled $99.1
million in 2020 and $96.6
million in 2019. Average interest-bearing liabilities
increased to $1.1 billion in 2020
from $804.5 million for the three
months ended December 31, 2019.
For the year ended December 31,
tax-equivalent net interest income declined $1.7 million to $39.6
million in 2020 from $41.3
million in 2019. The decrease was attributable to a
reduction in the net interest margin which more than offset the
increase in average earning assets. For the twelve months ended
December 31, tax-equivalent net
interest margin was 3.33% in 2020 compared to 4.07% in 2019. The
tax-equivalent net interest margin excluding purchase accounting
and income and fees earned on PPP loans would have been 3.41% in
2020 and 3.72% in 2019. The tax-equivalent yield on the loan
portfolio decreased to 4.13% in the twelve months ended
December 31, 2020 compared to 5.24%
for the same period in 2019. For the year ended December 31, investments yielded 2.55% on a
tax-equivalent basis in 2020 compared to 2.99% for the same period
last year. The cost of deposits decreased 34 basis points to 0.65%
in 2020 from 0.99% in 2019. The cost of interest-bearing
liabilities decreased to 0.69% in 2020 from 1.04% in 2019.
Comparing the years ended December 31,
2020 and 2019, average earning assets increased $174.6 million which outpaced the $163.2 million increase in average
interest-bearing liabilities. Loans averaged $190.7 million and investments averaged
$15.4 million higher comparing the
years ended December 31, 2020 and
2019. With respect to the growth in interest-bearing liabilities,
deposits averaged $163.2 million more
in 2020 compared to last year while average borrowing grew by more
than $147.8 million comparing the two
periods.
The provision for loan losses totaled $626 thousand for the quarter ended December 31, 2020, compared to $156 thousand for the same period in 2019. The
provision for loan losses totaled $6.3
million for the year ended December
31, 2020, compared to $2.4
million for the same period in 2019. The increase in the
provision for loan losses was the combined result of organic loan
growth, excluding PPP loan balances outstanding, and changes in
qualitative factors related to the allowance for loan losses
reserve associated with increasing risks within the economy and our
credit portfolio due to the effects of COVID-19, as of December 31, 2020.
For the quarter ended December 31,
noninterest income totaled $1.7
million in 2020 versus $2.6
million in 2019. The decrease was primarily attributable to
a reduction in service charges due to lower customer activity as a
result of the pandemic and write offs of certain property and
equipment. Mortgage banking income increased $123 thousand due to an increase in refinancing
activity brought on by the reduction in mortgage interest rates.
Trust and wealth management income increased $67 thousand and $9
thousand, respectively, comparing the fourth quarters of
2020 and 2019.
For the year ended December 31,
noninterest income increased by $259
thousand to $8.8 million in
2020 from $8.5 million in 2019. The
primary contributors to the overall increase were $815 thousand in gains on the sale of investment
securities and the recognition of higher comparable mortgage
banking income of $666 thousand.
Offsetting the increases were reductions in service charges due
primarily to lower customer activity resulting in reductions in
overdraft fee and ATM income and proactively working with customers
and noncustomers alike by temporarily suspending certain fees in an
effort to minimize the financial impact of COVID-19 within the
communities we serve. In addition, we recorded reductions in trust
commissions and fees and wealth management income of $119 thousand and $64
thousand, respectively, comparing the years ended
December 31, 2020 and 2019, which was
driven by the impact the pandemic has had on equity markets.
Noninterest expense decreased to $9.6
million for the three months ended December 31, 2020, from $10.2 million for the same period last year. The
overall decrease was primarily due to a decrease of $518 thousand in salaries and employee benefit
expenses due to the implementation of the reduction in force
initiative offset partially by incurring nonrecurring severance and
furlough costs. Comparing the fourth quarters of 2020 and 2019, net
occupancy and equipment expense increased $282 thousand due primarily to one-time charges
from the closure of branch offices. Other expenses decreased
$475 thousand comparing the fourth
quarters of 2020 and 2019 due to implementing efficiency
initiatives and selective expense reductions made during the
COVID-19 shutdowns.
For the year ended December 31,
noninterest expense increased to $62.7
million in 2020 compared to $42.1
million for the same period in 2019. Excluding the
nonrecurring goodwill impairment charge, noninterest expense would
have decreased by $4.1 million, or
9.8%, in 2020 as compared to 2019.
BALANCE SHEET REVIEW
Total assets, loans, net, and deposits totaled $1.4 billion, $1.1
billion, and $1.0
billion, respectively, at December 31, 2020. For the year ended
December 31, 2020, total assets,
loans and deposits increased $277.6
million, $287.1 million and
$75.0 million,
respectively. Business lending, including commercial and
commercial real estate loans, increased $287.0 million due primarily to the addition of
PPP loans and originations in new and existing markets in
2020. For this same period, construction lending increased
$11.6 million while retail lending,
which includes residential mortgage, home equity and consumer
loans, decreased $11.5 million. Total
investments increased to $103.7
million at December 31, 2020, compared to $91.2 million at December
31, 2019 as security purchases more than offset payments and
prepayments. The increase in total deposits consisted of
increases in noninterest-bearing deposits of $26.2 million and interest-bearing deposits
of $48.8 million. As a percentage of
total deposits, noninterest-bearing deposits amounted to 17.1% at
December 31, 2020 and 15.7% at
December 31, 2019. Long term debt
increased $221.8 million primarily
through the use of the Federal Reserve's PPPLF program, intended to
provide low cost funding options to entities issuing PPP loans. For
the fourth quarter ended December 31,
2020, total assets increased $782.0
thousand while loans, net and deposits decreased
$24.2 million and $15.9 million, respectively.
Stockholders' equity totaled $97.4 million, or
$10.47 per share, at
December 31, 2020, $95.4 million, or $10.28 per share, at September 30, 2020, and $118.1 million, or $12.81 per share, at December 31, 2019. The decrease in stockholders'
equity for the year ended December 31,
2020 was due to the goodwill impairment charge recorded at
the end of the second quarter of 2020. Tangible
stockholders' equity per common share increased to
$10.26 at December 31, 2020, compared to $9.83 at December
31, 2019.
ASSET QUALITY REVIEW
Nonperforming assets were $12.0
million, or 1.05% of loans, net, and
foreclosed assets at December 31,
2020, $13.0 million or 1.12%
at September 30, 2020, and
$5.1 million or 0.60% at December 31, 2019. Accruing troubled debt
restructured ("TDR") loans increased $7.3
million from $2.7 million at
year end 2019 to $10.0 million at
year end 2020 due primarily to one commercial real estate
relationship. In March 2020, a joint
statement was issued by federal and state regulatory agencies to
clarify that short-term loan modifications are not TDRs if made on
a good-faith basis in response to COVID-19 to borrowers who were
current prior to the implementation of our deferral programs. The
Company reevaluates credit granted deferrals under this guidance
each quarter under its existing TDR framework, and where such a
loan modification would meet traditional TDR concession
definitions, the loan will be accounted for as a TDR. Adjusting for
accruing restructured loans, nonperforming assets were
$2.0 million, or 0.18% of loans,
net and foreclosed assets at December
31, 2020, and $2.4 million, or 0.28%, at
December 31, 2019. The allowance
for loan losses balance equaled $12.2 million, or 1.07%, of loans,
net, and 1.37% excluding 100% SBA guaranteed PPP loan balances
outstanding, at December 31, 2020,
compared to $7.5 million, or 0.88%,
at December 31, 2019. The
coverage ratio, the allowance for loan losses as a percentage of
nonperforming assets, was 102.0% at December
31, 2020 and 148.0% at December 31,
2019. Excluding accruing restructured loans, the coverage
ratio would be 610.3% at December 31,
2020. Loans charged-off, net of recoveries, for the
year ended December 31, 2020 equaled
$1.6 million compared to
$1.2 million for the year ended
December 31, 2019.
Riverview Financial Corporation is the parent company of
Riverview Bank. An independent community bank, Riverview Bank
serves the Pennsylvania market
areas of Berks, Blair, Bucks,
Centre, Clearfield, Cumberland, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry, Schuylkill and Somerset Counties through 27 community banking
offices and three limited purpose offices. Each full-service
community banking office, interdependent with the community, offers
a comprehensive array of financial products and services to
individuals, businesses, not-for-profit organizations and
government entities. Riverview's
business philosophy includes offering direct access to senior
management and other officers and providing friendly, informed and
courteous service, local and timely decision making, flexible and
reasonable operating procedures and consistently applied credit
policies. The Company's common stock trades on the NASDAQ Global
Market under the symbol "RIVE". The Investor Relations site can be
accessed at https://www.riverviewbankpa.com/.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time
to time make other statements regarding our outlook or expectations
for future financial or operating results and/or other matters
regarding or affecting Riverview Financial Corporation, Riverview
Bank, and its subsidiaries (collectively, "Riverview") that may be considered
"forward-looking statements" as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements may be identified by the use of such words as "believe,"
"expect," "anticipate," "should," "planned," "estimated," "intend"
and "potential." For these statements, Riverview claims the protection of the
statutory safe harbors for forward-looking statements.
Riverview cautions you that a
number of important factors could cause actual results to differ
materially from those currently anticipated in any forward-looking
statement. Such factors include, but are not limited to: prevailing
economic and political conditions, particularly in our market area;
credit risk associated with our lending activities; changes in
interest rates, loan demand, real estate values and competition;
changes in accounting principles, policies, and guidelines; changes
in any applicable law, rule, regulation or practice with respect to
tax or legal issues; and other economic, competitive, governmental,
regulatory and technological factors affecting Riverview's operations, pricing, products
and services and other factors that may be described in
Riverview's Annual Reports on
Form 10-K and Quarterly Reports on Form 10-Q as filed with the
Securities and Exchange Commission from time to time. Most
recently in December 2019, a novel
strain of coronavirus surfaced in Wuhan,
China, and spread around the world, with resulting business
and social disruption. The coronavirus was declared a Public
Health Emergency of International Concern by the World Health
Organization on January 30,
2020. The risk factors associated with this event could have a
material adverse effect on significant estimates, operations and
business results of Riverview.
Significant estimates as disclosed in Riverview's Forms 10-K and 10-Q include
allowance for loan losses, fair value of financial instruments, the
valuation of real estate acquired in connection with foreclosures
or in satisfaction of loan, determination of other-than-temporary
impairment losses on securities, impairment of goodwill and
intangible assets.
Furthermore, the COVID-19 pandemic is having an adverse impact
on the Company, its customers and the communities it serves. Given
its ongoing and dynamic nature, it is difficult to predict the full
impact of the COVID-19 outbreak on the Company's business. The
extent of such impact will depend on future developments, which are
highly uncertain, including when the coronavirus can be controlled
and abated and when and how the economy may be reopened. As the
result of the COVID-19 pandemic and the related adverse local and
national economic consequences, the Company could be subject to any
of the following risks, any of which could have a material, adverse
effect on the Company's business, financial condition, liquidity,
and results of operations: the demand for Bank's products and
services may decline, making it difficult to grow assets and
income; if the economy is unable to substantially reopen, and high
levels of unemployment continue for an extended period of time,
loan delinquencies, problem assets, and foreclosures may increase,
resulting in increased charges and reduced income; collateral for
loans, especially real estate, may decline in value, which could
cause loan losses to increase; the Company's allowance for loan
losses may increase if borrowers experience financial difficulties,
which will adversely affect the Company's net income; the net worth
and liquidity of loan guarantors may decline, impairing their
ability to honor commitments to the Company; as the result of the
decline in the Federal Reserve Board's target federal funds rate to
near 0%, the yield on the Company's assets may decline to a greater
extent than the decline in the Company's cost of interest-bearing
liabilities, reducing the Company's net interest margin and spread
and reducing net income; the Company's wealth management revenues
may decline with continuing market turmoil; and the Company's
cybersecurity risks are increased as the result of an increase in
the number of employees working remotely.
In addition to these risks, acquisitions and business
combinations present risks other than those presented by the
nature of the business acquired. Acquisitions and business
combinations may be substantially more expensive to complete than
originally anticipated, and the anticipated benefits may be
significantly harder, or take longer, to achieve than expected. As
a regulated financial institution, our pursuit of attractive
acquisition and business combination opportunities could be
negatively impacted by regulatory delays or other regulatory
issues. Regulatory and/or legal issues related to the
preacquisition operations of an acquired or combined business may
cause reputational harm to Riverview following the acquisition or
combination, and integration of the acquired or combined business
with ours may result in additional future costs arising as a result
of those issues.
The forward-looking statements are made as of the date of this
release, and, except as may be required by applicable law or
regulation, Riverview assumes no
obligation to update the forward-looking statements or to update
the reasons why actual results could differ from those projected in
the forward-looking statements.
In addition to evaluating its results of operations in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"), Riverview routinely
presents and supplements its evaluation with an analysis of certain
non-GAAP financial measures, such as tangible stockholders' equity
and Core net income ratios. The reported results for the three
and twelve months ended December 31, 2020 and 2019,
contain items which Riverview
considers non-core, namely net gains on sales of investment
securities available-for-sale, acquisition related
expenses and the adjustment to tax expense due to the
enactment of the Tax Act. Riverview presents the non-GAAP financial
measures because it believes that these measures provide useful and
comparative information to assess trends in Riverview's results of
operation. Presentation of these non-GAAP
financial measures is consistent with how Riverview evaluates its performance internally
and these non-GAAP financial measures are frequently used by
securities analysts, investors and other interested parties in
evaluation of companies in Riverview's industry. Where non-GAAP
measures are used in this press release,
reconciliations to the comparable GAAP
measures are provided in the accompanying
tables. The non-GAAP financial measures Riverview uses may differ from similarly
titled non-GAAP financial measures of other financial
institutions. These non-GAAP financial measures would not be
considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its
condensed consolidated financial statements in their
entirety. Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures are presented in the tabular material that
follows.
[TABULAR MATERIAL FOLLOWS]
Summary
Data
|
Riverview
Financial Corporation
|
Five Quarter
Trend
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
Dec
31
|
|
2020
|
2020
|
2020
|
2020
|
2019
|
Key performance
data:
|
|
|
|
|
|
Per common share
data:
|
|
|
|
|
|
Net income
(loss)
|
$
0.17
|
$
0.08
|
$(2.61)
|
$
0.07
|
$
0.14
|
Core net income
(1)
|
$
0.17
|
$
0.07
|
$
0.05
|
$
0.00
|
$
0.13
|
Cash dividends
declared
|
$
0.00
|
$
0.00
|
$
0.08
|
$
0.08
|
$
0.08
|
Book value
|
$ 10.47
|
$ 10.28
|
$10.20
|
$12.82
|
$12.81
|
Tangible book value
(1)
|
$ 10.26
|
$ 10.04
|
$
9.94
|
$
9.87
|
$
9.83
|
Market
value:
|
|
|
|
|
|
High
|
$
9.50
|
$
7.77
|
$
7.60
|
$13.60
|
$12.50
|
Low
|
$
6.76
|
$
5.25
|
$
4.13
|
$
5.25
|
$
11.10
|
Closing
|
$
9.15
|
$
6.76
|
$
5.38
|
$
6.47
|
$
12.49
|
Market
capitalization
|
$85,154
|
$62,729
|
$49,839
|
$59,757
|
$115,116
|
Common shares
outstanding
|
9,306,442
|
9,279,503
|
9,263,697
|
9,236,039
|
9,216,616
|
|
|
|
|
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
6.51%
|
2.88%
|
(81.21)%
|
2.14%
|
4.28%
|
|
|
|
|
|
|
Core return on
average stockholders' equity (1)
|
6.51%
|
2.88%
|
1.55%
|
(0.04)%
|
4.09%
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity (1)
|
6.66%
|
2.95%
|
(104.88)%
|
2.77%
|
5.59%
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity (1)
|
6.66%
|
2.95%
|
2.00%
|
(0.05)%
|
5.33%
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets (1)
|
7.05%
|
6.88%
|
6.85%
|
8.36%
|
8.61%
|
|
|
|
|
|
|
Return on average
assets
|
0.46%
|
0.20%
|
(7.50)%
|
0.23%
|
0.46%
|
|
|
|
|
|
|
Core return on
average assets (1)
|
0.46%
|
0.20%
|
0.14%
|
0.00%
|
0.44%
|
|
|
|
|
|
|
Stockholders' equity
to total assets
|
7.18%
|
7.03%
|
7.01%
|
10.60%
|
10.94%
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
76.13%
|
77.46%
|
76.84%
|
82.49%
|
84.24%
|
|
|
|
|
|
|
Nonperforming assets
to loans, net, and foreclosed assets
|
1.05%
|
1.12%
|
1.15%
|
0.65%
|
0.60%
|
|
|
|
|
|
|
Net charge-offs to
average loans, net
|
0.02%
|
(0.02)%
|
0.20%
|
0.49%
|
(0.12)%
|
|
|
|
|
|
|
Allowance for loan
losses to loans, net
|
1.07%
|
1.00%
|
0.84%
|
0.93%
|
0.88%
|
|
|
|
|
|
|
Earning assets yield
(FTE) (3)
|
3.74%
|
3.73%
|
3.85%
|
4.39%
|
4.54%
|
|
|
|
|
|
|
Cost of
funds
|
0.63%
|
0.56%
|
0.67%
|
0.95%
|
0.99%
|
|
|
|
|
|
|
Net interest spread
(FTE) (3)
|
3.11%
|
3.17%
|
3.18%
|
3.44%
|
3.55%
|
|
|
|
|
|
|
Net interest margin
(FTE) (3)
|
3.21%
|
3.26%
|
3.29%
|
3.60%
|
3.74%
|
|
|
(1)
|
See Reconciliation of
Non-GAAP financial measures.
|
(2)
|
Total noninterest
expense less amortization of intangible assets and goodwill
impairment charge divided by tax-equivalent net interest income and
noninterest income less net gain (loss) on sale of investment
securities available-for-sale.
|
(3)
|
Tax-equivalent
adjustments were calculated using the prevailing federal statutory
tax rate.
|
|
Riverview Financial
Corporation
|
|
|
Consolidated
Statements of Income (Loss)
|
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
Dec 31
|
|
Dec 31
|
|
|
|
2020
|
|
2019
|
|
|
Interest
income:
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
Taxable
|
$43,052
|
|
$44,867
|
|
|
Tax-exempt
|
883
|
|
979
|
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
Taxable
|
1,702
|
|
2,735
|
|
|
Tax-exempt
|
289
|
|
200
|
|
|
Dividends
|
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
120
|
|
766
|
|
|
Interest on federal
funds sold
|
|
|
|
|
|
Total interest
income
|
46,046
|
|
49,547
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
Interest on
deposits
|
5,419
|
|
8,086
|
|
|
Interest on short-term
borrowings
|
28
|
|
|
|
|
Interest on long-term
debt
|
1,336
|
|
514
|
|
|
Total interest
expense
|
6,783
|
|
8,600
|
|
|
Net interest
income
|
39,263
|
|
40,947
|
|
|
Provision for loan
losses
|
6,282
|
|
2,406
|
|
|
Net interest income
after provision for loan losses
|
32,981
|
|
38,541
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
Service charges, fees
and commissions
|
4,133
|
|
5,186
|
|
|
Commissions and fees
on fiduciary activities
|
961
|
|
1,080
|
|
|
Wealth management
income
|
876
|
|
940
|
|
|
Mortgage banking
income
|
1,233
|
|
567
|
|
|
Life insurance
investment income
|
755
|
|
763
|
|
|
Net gain (loss) on
sale of investment securities available-for-sale
|
815
|
|
(22)
|
|
|
Total noninterest
income
|
8,773
|
|
8,514
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
Salaries and employee
benefits expense
|
20,207
|
|
23,845
|
|
|
Net occupancy and
equipment expense
|
5,141
|
|
4,357
|
|
|
Amortization of
intangible assets
|
818
|
|
773
|
|
|
Goodwill
impairment
|
24,754
|
|
|
|
|
Net cost of operation
of other real estate owned
|
55
|
|
67
|
|
|
Other
expenses
|
11,733
|
|
13,026
|
|
|
Total noninterest
expense
|
62,708
|
|
42,068
|
|
|
Income (loss) before
income taxes
|
(20,954)
|
|
4,987
|
|
|
Income tax
expense
|
257
|
|
701
|
|
|
Net income
(loss)
|
$(21,211)
|
|
$4,286
|
|
|
Other comprehensive income:
|
|
|
|
|
|
Unrealized gain on
investment securities available-for-sale
|
$2,101
|
|
$2,837
|
|
|
Reclassification
adjustment for (gain) loss included in net income
|
(815)
|
|
22
|
|
|
Change in pension
liability
|
166
|
|
16
|
|
|
Change in cash flow
hedge
|
172
|
|
|
|
|
Income tax expense
related to other comprehensive income
|
341
|
|
604
|
|
|
Other comprehensive
income, net of income taxes
|
1,283
|
|
2,271
|
|
|
Comprehensive income
(loss)
|
$(19,928)
|
|
$6,557
|
|
|
|
|
|
|
|
|
Per common share
data:
|
|
|
|
|
|
Net income
(loss):
|
|
|
|
|
|
Basic
|
$(2.29)
|
|
$0.47
|
|
|
Diluted
|
$(2.29)
|
|
$0.47
|
|
|
Average common shares
outstanding:
|
|
|
|
|
|
Basic
|
9,258,493
|
|
9,167,415
|
|
|
Diluted
|
9,258,493
|
|
9,181,752
|
|
|
Cash dividends
declared
|
$0.15
|
|
$0.35
|
|
Riverview
Financial Corporation
|
Consolidated
Statements of Income (Loss)
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
|
|
2020
|
2020
|
2020
|
2020
|
2019
|
|
Interest
income:
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
Taxable
|
$
11,403
|
$
11,265
|
$
10,602
|
$
9,782
|
$
10,216
|
|
Tax-exempt
|
179
|
223
|
236
|
245
|
257
|
|
Interest and
dividends on investment securities available-for-sale:
|
|
|
|
|
|
|
Taxable
|
411
|
360
|
396
|
535
|
622
|
|
Tax-exempt
|
113
|
71
|
68
|
37
|
41
|
|
Dividends
|
|
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
8
|
11
|
12
|
89
|
119
|
|
Interest on federal
funds sold
|
|
|
|
|
|
|
Total interest
income
|
12,114
|
11,930
|
11,314
|
10,688
|
11,255
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
Interest on
deposits
|
1,035
|
1,200
|
1,395
|
1,789
|
1,887
|
|
Interest on
short-term borrowings
|
|
|
23
|
5
|
|
|
Interest on long-term
debt
|
684
|
304
|
225
|
123
|
122
|
|
Total interest
expense
|
1,719
|
1,504
|
1,643
|
1,917
|
2,009
|
|
Net interest
income
|
10,395
|
10,426
|
9,671
|
8,771
|
9,246
|
|
Provision for loan
losses
|
626
|
1,844
|
2,012
|
1,800
|
156
|
|
Net interest income
after provision for loan losses
|
9,769
|
8,582
|
7,659
|
6,971
|
9,090
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
Service charges, fees
and commissions
|
642
|
1,099
|
1,011
|
1,381
|
1,689
|
|
Commissions and fees
on fiduciary activities
|
292
|
246
|
210
|
213
|
225
|
|
Wealth management
income
|
240
|
220
|
196
|
220
|
231
|
|
Mortgage banking
income
|
333
|
401
|
391
|
108
|
210
|
|
Life insurance
investment income
|
177
|
192
|
193
|
193
|
189
|
|
Net gain (loss) on
sale of investment securities available-for-sale
|
|
|
|
815
|
73
|
|
Total
noninterest income
|
1,684
|
2,158
|
2,001
|
2,930
|
2,617
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
4,755
|
5,411
|
4,985
|
5,056
|
5,273
|
|
Net occupancy and
equipment expense
|
1,465
|
1,428
|
1,068
|
1,180
|
1,183
|
|
Amortization of
intangible assets
|
309
|
170
|
169
|
170
|
191
|
|
Goodwill
impairment
|
|
|
24,754
|
|
|
|
Net cost (benefit) of
operation of other real estate owned
|
15
|
51
|
|
(11)
|
47
|
|
Other
expenses
|
3,020
|
2,918
|
2,978
|
2,817
|
3,495
|
|
Total noninterest
expense
|
9,564
|
9,978
|
33,954
|
9,212
|
10,189
|
|
Income (loss) before
income taxes
|
1,889
|
762
|
(24,294)
|
689
|
1,518
|
|
Income tax expense
(benefit)
|
306
|
67
|
(172)
|
56
|
245
|
|
Net income
(loss)
|
$ 1,583
|
$
695
|
$(24,122)
|
$
633
|
$
1,273
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
$
94
|
$
114
|
$
840
|
$ 1,053
|
$
134
|
|
Reclassification
adjustment for (gain) loss included in net income
|
|
|
|
(815)
|
(73)
|
|
Change in pension
liability
|
166
|
|
|
|
16
|
|
Change in cash flow
hedge
|
161
|
49
|
(38)
|
|
|
|
Income tax expense
(benefit) related to other comprehensive income (loss)
|
88
|
35
|
168
|
50
|
16
|
|
Other comprehensive
income (loss), net of income taxes
|
333
|
128
|
634
|
188
|
61
|
|
Comprehensive income
(loss)
|
$ 1,916
|
$
823
|
$(23,488)
|
$821
|
$1,334
|
|
Per common share
data:
|
|
|
|
|
|
|
Net income
(loss):
|
|
|
|
|
|
|
Basic
|
$ 0.17
|
$ 0.08
|
$(2.61)
|
$ 0.07
|
$ 0.14
|
|
Diluted
|
$ 0.17
|
$ 0.08
|
$(2.61)
|
$ 0.07
|
$ 0.14
|
|
Average common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
9,287,196
|
9,273,666
|
9,249,184
|
9,223,445
|
9,191,551
|
|
Diluted
|
9,287,196
|
9,273,666
|
9,249,184
|
9,233,060
|
9,210,646
|
|
Cash dividends
declared
|
$ 0.00
|
$ 0.00
|
$ 0.08
|
$ 0.08
|
$ 0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Riverview
Financial Corporation
|
Details of Net
Interest and Net Interest Margin
|
(In thousands,
fully taxable equivalent basis)
|
|
|
|
|
|
|
Three months
ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
|
2020
|
2020
|
2020
|
2020
|
2019
|
Net interest
income:
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
Taxable
|
$
11,403
|
$
11,265
|
$
10,602
|
$
9,782
|
$
10,216
|
Tax-exempt
|
227
|
282
|
299
|
310
|
325
|
Total loans,
net
|
11,630
|
11,547
|
10,901
|
10,092
|
10,541
|
Investments:
|
|
|
|
|
|
Taxable
|
411
|
360
|
396
|
535
|
622
|
Tax-exempt
|
143
|
90
|
86
|
47
|
52
|
Total
investments
|
554
|
450
|
482
|
582
|
674
|
Interest on
interest-bearing balances in other banks
|
8
|
11
|
12
|
89
|
119
|
Federal funds
sold
|
|
|
|
|
|
Total interest
income
|
12,192
|
12,008
|
11,395
|
10,763
|
11,334
|
Interest
expense:
|
|
|
|
|
|
Deposits
|
1,035
|
1,200
|
1,395
|
1,789
|
1,887
|
Short-term
borrowings
|
|
|
23
|
5
|
|
Long-term
debt
|
684
|
304
|
225
|
123
|
122
|
Total interest
expense
|
1,719
|
1,504
|
1,643
|
1,917
|
2,009
|
Net interest
income
|
$
10,473
|
$
10,504
|
$
9,752
|
$
8,846
|
$
9,325
|
|
|
|
|
|
|
Yields on earning
assets:
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
Taxable
|
4.00%
|
3.95%
|
4.10%
|
4.69%
|
4.93%
|
Tax-exempt
|
3.29%
|
3.57%
|
3.46%
|
3.50%
|
3.47%
|
Total loans,
net
|
3.98%
|
3.94%
|
4.08%
|
4.64%
|
4.86%
|
Investments:
|
|
|
|
|
|
Taxable
|
2.04%
|
2.17%
|
2.74%
|
2.78%
|
2.69%
|
Tax-exempt
|
2.98%
|
3.31%
|
4.10%
|
4.08%
|
4.19%
|
Total
investments
|
2.22%
|
2.33%
|
2.91%
|
2.85%
|
2.77%
|
Interest-bearing
balances with banks
|
0.09%
|
0.11%
|
0.10%
|
1.17%
|
1.39%
|
Federal funds
sold
|
|
|
|
|
|
Total earning
assets
|
3.74%
|
3.73%
|
3.85%
|
4.39%
|
4.54%
|
Costs of
interest-bearing liabilities:
|
|
|
|
|
|
Deposits
|
0.49%
|
0.56%
|
0.67%
|
0.90%
|
0.94%
|
Short-term
borrowings
|
|
|
0.33%
|
2.03%
|
|
Long-term
debt
|
1.15%
|
0.56%
|
0.74%
|
4.19%
|
6.95%
|
Total interest-bearing
liabilities
|
0.63%
|
0.56%
|
0.67%
|
0.95%
|
0.99%
|
Net interest
spread
|
3.11%
|
3.17%
|
3.18%
|
3.44%
|
3.55%
|
Net interest
margin
|
3.21%
|
3.26%
|
3.29%
|
3.60%
|
3.74%
|
|
|
|
|
|
|
|
|
|
Riverview
Financial Corporation
|
Consolidated
Balance Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
At period
end
|
2020
|
2020
|
2020
|
2020
|
2019
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
13,511
|
$
10,646
|
$
10,195
|
$
12,128
|
$
11,838
|
Interest-bearing
balances in other banks
|
36,270
|
21,312
|
33,033
|
61,107
|
38,510
|
Federal funds
sold
|
|
|
|
|
|
Investment securities
available-for-sale
|
103,694
|
98,846
|
74,134
|
68,402
|
91,247
|
Loans held for
sale
|
4,338
|
4,547
|
4,252
|
272
|
81
|
Loans, net
|
1,139,239
|
1,163,442
|
1,165,453
|
887,449
|
852,109
|
Less: allowance for
loan losses
|
12,200
|
11,624
|
9,736
|
8,251
|
7,516
|
Net loans
|
1,127,039
|
1,151,818
|
1,155,717
|
879,198
|
844,593
|
Premises and
equipment, net
|
18,147
|
18,419
|
18,668
|
18,875
|
17,852
|
Accrued interest
receivable
|
4,216
|
3,218
|
1,826
|
2,589
|
2,414
|
Goodwill
|
|
|
|
24,754
|
24,754
|
Other intangible
assets, net
|
1,918
|
2,227
|
2,397
|
2,566
|
2,736
|
Other
assets
|
48,421
|
45,739
|
46,578
|
47,152
|
45,929
|
Total
assets
|
$1,357,554
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
|
$
173,600
|
$
178,168
|
$
173,567
|
$
148,633
|
$
147,405
|
Interest-bearing
|
841,860
|
853,145
|
849,586
|
809,870
|
793,075
|
Total
deposits
|
1,015,460
|
1,031,313
|
1,023,153
|
958,503
|
940,480
|
Short-term
borrowings
|
|
|
|
|
|
Long-term
debt
|
228,765
|
217,031
|
217,010
|
26,992
|
6,971
|
Accrued interest
payable
|
1,038
|
591
|
457
|
424
|
435
|
Other
liabilities
|
14,859
|
12,413
|
11,728
|
12,683
|
13,958
|
Total
liabilities
|
1,260,122
|
1,261,348
|
1,252,348
|
998,602
|
961,844
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
102,662
|
102,672
|
102,552
|
102,386
|
102,206
|
Capital
surplus
|
292
|
190
|
161
|
134
|
112
|
Retained earnings
(accumulated deficit)
|
(6,457)
|
(8,040)
|
(8,735)
|
16,081
|
16,140
|
Accumulated other
comprehensive income (loss)
|
935
|
602
|
474
|
(160)
|
(348)
|
Total stockholders'
equity
|
97,432
|
95,424
|
94,452
|
118,441
|
118,110
|
Total liabilities and
stockholders' equity
|
$1,357,554
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Riverview
Financial Corporation
Consolidated
Balance Sheets
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Average quarterly
balances
|
2020
|
2020
|
2020
|
2020
|
2019
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
Taxable
|
$1,134,149
|
$1,134,625
|
$1,041,161
|
$838,825
|
$822,667
|
Tax-exempt
|
27,425
|
31,451
|
34,723
|
35,595
|
37,194
|
Total loans,
net
|
1,161,574
|
1,166,076
|
1,075,884
|
874,420
|
859,861
|
Investments:
|
|
|
|
|
|
Taxable
|
79,996
|
66,049
|
58,230
|
77,400
|
91,665
|
Tax-exempt
|
19,102
|
10,812
|
8,442
|
4,628
|
4,929
|
Total
investments
|
99,098
|
76,861
|
66,672
|
82,028
|
96,594
|
Interest-bearing
balances with banks
|
35,381
|
38,334
|
48,174
|
30,490
|
33,882
|
Federal funds
sold
|
|
|
|
|
|
Total earning
assets
|
1,296,053
|
1,281,271
|
1,190,730
|
986,938
|
990,337
|
Other
assets
|
70,815
|
73,079
|
102,097
|
98,407
|
99,930
|
Total
assets
|
$1,366,868
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
|
$173,629
|
$175,402
|
$171,500
|
$144,630
|
$152,596
|
Interest-bearing
|
847,124
|
853,782
|
837,512
|
795,084
|
797,577
|
Total
deposits
|
1,020,753
|
1,029,184
|
1,009,012
|
939,714
|
950,173
|
Short-term
borrowings
|
|
|
28,417
|
989
|
|
Long-term
debt
|
236,043
|
217,021
|
122,875
|
11,817
|
6,962
|
Other
liabilities
|
13,389
|
12,135
|
13,062
|
13,668
|
15,179
|
Total
liabilities
|
1,270,185
|
1,258,340
|
1,173,366
|
966,188
|
972,314
|
Stockholders'
equity
|
96,683
|
96,010
|
119,461
|
119,157
|
117,953
|
Total liabilities and
stockholders' equity
|
$1,366,868
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
Riverview
Financial Corporation
|
Asset Quality
Data
|
(In
thousands)
|
|
|
|
|
|
|
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
|
2020
|
2020
|
2020
|
2020
|
2019
|
At quarter
end:
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
Nonaccrual
loans
|
$1,421
|
$3,225
|
$3,241
|
$2,048
|
$2,287
|
Accruing restructured
loans
|
9,963
|
9,648
|
9,592
|
2,646
|
2,666
|
Accruing loans past
due 90 days or more
|
156
|
108
|
183
|
691
|
45
|
Foreclosed
assets
|
422
|
25
|
363
|
346
|
82
|
Total nonperforming
assets
|
$11,962
|
$13,006
|
$13,379
|
$5,731
|
$5,080
|
|
|
|
|
|
|
Three months
ended:
|
|
|
|
|
|
Allowance for loan
losses:
|
|
|
|
|
|
Beginning
balance
|
$11,624
|
$9,736
|
$8,251
|
$7,516
|
$7,097
|
Charge-offs
|
100
|
42
|
574
|
1,123
|
237
|
Recoveries
|
50
|
86
|
47
|
58
|
500
|
Provision for loan
losses
|
626
|
1,844
|
2,012
|
1,800
|
156
|
Ending
balance
|
$12,200
|
$11,624
|
$9,736
|
$8,251
|
$7,516
|
|
|
|
|
|
|
Riverview
Financial Corporation
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Three months
ended:
|
2020
|
2020
|
2020
|
2020
|
2019
|
Core net income
(loss) per common share:
|
|
|
|
|
|
Net income
(loss)
|
$1,583
|
$695
|
$(24,122)
|
$633
|
$1,273
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
|
644
|
58
|
Add: Goodwill
impairment
|
|
|
24,581
|
|
|
Net income (loss) –
Core
|
$1,583
|
$695
|
$459
|
$(11)
|
$1,215
|
|
|
|
|
|
|
Average common shares
outstanding
|
9,287,196
|
9,273,666
|
9,249,184
|
9,223,445
|
9,191,551
|
Core net income per
common share
|
$ 0.17
|
$ 0.07
|
$ 0.05
|
$ 0.00
|
$ 0.13
|
|
|
|
|
|
|
Tangible book
value:
|
|
|
|
|
|
Total stockholders'
equity
|
$97,432
|
$95,424
|
$94,452
|
$118,441
|
$118,110
|
Less:
Goodwill
|
|
|
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
1,918
|
2,227
|
2,397
|
2,566
|
2,736
|
Total tangible
stockholders' equity
|
$95,514
|
$93,197
|
$92,055
|
$91,121
|
$90,620
|
|
|
|
|
|
|
Common shares
outstanding
|
9,306,442
|
9,279,503
|
9,263,697
|
9,236,039
|
9,216,616
|
|
|
|
|
|
|
Tangible book value
per share
|
$10.26
|
$10.04
|
$9.94
|
$9.87
|
$9.83
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets:
|
|
|
|
|
|
Total stockholders'
equity
|
$97,432
|
$95,424
|
$94,452
|
$118,441
|
$118,110
|
Less:
Goodwill
|
|
|
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
1,918
|
2,227
|
2,397
|
2,566
|
2,736
|
Total tangible
stockholders' equity
|
$95,514
|
$93,197
|
$92,055
|
$91,121
|
$90,620
|
|
|
|
|
|
|
Total
assets
|
$1,357,554
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
Less:
Goodwill
|
|
|
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
1,918
|
2,227
|
2,397
|
2,566
|
2,736
|
Total tangible
assets
|
$1,355,636
|
$1,354,545
|
$1,344,403
|
$1,089,723
|
$1,052,464
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets
|
7.05%
|
6.88%
|
6.85%
|
8.36%
|
8.61%
|
|
|
|
|
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$1,583
|
$695
|
$(24,122)
|
$633
|
$1,273
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
|
644
|
58
|
Add: Goodwill
impairment
|
|
|
24,581
|
|
|
Net income (loss) –
Core
|
$1,583
|
$695
|
$459
|
$(11)
|
$1,215
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,683
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
Core return on
average stockholders' equity
|
6.51%
|
2.88%
|
1.55%
|
(0.04)%
|
4.09%
|
|
|
|
|
|
|
Return on average
tangible equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$1,583
|
$695
|
$(24,122)
|
$633
|
$1,273
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,683
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
Less: average
intangibles
|
2,116
|
2,310
|
26,961
|
27,401
|
27,579
|
Average tangible
stockholders' equity
|
$94,567
|
$93,700
|
$92,500
|
$91,756
|
$90,374
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity
|
6.66%
|
2.95%
|
(104.88)%
|
2.77%
|
5.59%
|
|
|
|
|
|
|
Riverview
Financial Corporation
|
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Three months
ended:
|
2020
|
2020
|
2020
|
2020
|
2019
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$1,583
|
$695
|
$(24,122)
|
$633
|
$1,273
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
|
644
|
58
|
Add: Goodwill
impairment
|
|
|
24,581
|
|
|
Net income (loss) –
Core
|
$1,583
|
$695
|
$459
|
$(11)
|
$1,215
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,683
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
Less: average
intangibles
|
2,116
|
2,310
|
26,961
|
27,401
|
27,579
|
Average tangible
stockholders' equity
|
$94,567
|
$93,700
|
$92,500
|
$91,756
|
$90,374
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity
|
6.66%
|
2.95%
|
2.00%
|
(0.05)%
|
5.33%
|
|
|
|
|
|
|
Core return on
average assets:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$1,583
|
$695
|
$(24,122)
|
$633
|
$1,273
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
|
644
|
58
|
Add: Goodwill
impairment
|
|
|
24,581
|
|
|
Net income (loss) –
Core
|
$1,583
|
$695
|
$459
|
$(11)
|
$1,215
|
|
|
|
|
|
|
Average
assets
|
$1,366,868
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
Core return on
average assets
|
0.46%
|
0.20%
|
0.14%
|
0.00%
|
0.44%
|
Riverview
Financial Corporation
|
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
Dec 31
|
Dec 31
|
|
|
2020
|
2019
|
Twelve months
ended:
|
|
|
|
|
|
|
|
Core net income per
common share:
|
|
|
|
Net income
(loss)
|
|
$(21,211)
|
$4,286
|
Adjustments:
|
|
|
|
Less:
Gains (loss) on sale of investment securities, net of
tax
|
|
644
|
(17)
|
Add:
Executive separation expense, net of tax
|
|
|
1,752
|
Add: Goodwill impairment
|
|
24,581
|
|
Net income (loss) –
core
|
|
$2,726
|
$6,055
|
|
|
|
|
Average common shares
outstanding
|
|
9,258,493
|
9,167,415
|
|
|
|
|
Core net income
(loss) per common share
|
|
$0.29
|
$0.66
|
|
|
|
|
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SOURCE Riverview Financial Corporation