HARRISBURG, Pa., Oct. 23, 2017 /PRNewswire/ — Riverview Financial Corporation (“Riverview“) (OTCQX: RIVE), a financial holding association for Riverview Bank, now reported unaudited financial formula during and for a 3 and 9 months finished September 30, 2017. Riverview reported net income of $401 thousand, or $0.08 per simple and diluted weighted normal common share, for a third entertain of 2017, compared to net income of $971 thousand, or $0.30 per simple and diluted weighted normal common share, for a allied duration of 2016.
For a 9 months finished September 30, 2017, Riverview reported net income of $13 thousand, or $0.03 per simple and diluted weighted normal common share, compared to $2,579 thousand, or $0.80 per simple and diluted weighted normal common share, for a same duration final year. The rebate in allied net income for a 9 months finished September 30, 2017 was a approach outcome of incurring certain costs compared to implementing vital initiatives to lift shareholder value by item expansion supposing by organic and fake opportunities. On January 20, 2017, Riverview announced a successful execution of a $17.0 million private chain of common and elite securities. The additional collateral afforded Riverview a ability to significantly grow a loan portfolio by employing mixed teams of gifted and determined lenders to offer new and existent markets. More quite a collateral lift authorised Riverview to acquire CBT Financial Corp., a primogenitor association of CBT Bank, in a batch transaction valued during approximately $54.6 million effective October 1, 2017. This partnership sum a sum village banking authorization with approximately $1.2 billion of resources that provides extended products and services by 33 banking and financial use locations covering 12 Pennsylvania counties.
HIGHLIGHTS
- Loans, net grew $150.8 million or 36.9% for a 9 months finished September 30, 2017.
- Quarterly loan expansion in 2017 totaled $55.1 million or 13.5% in a initial quarter, $40.3 million or 8.7% in a second entertain and $55.4 million or 11.0% in a third quarter.
- Deposits augmenting $122.4 million, or 27.0%, to $575.0 million during a finish of a third entertain of 2017 from $452.6 during year finish 2016.
- For a buliding of 2017, deposits grew $43.9 million or 9.7% in a initial quarter, $27.4 million or 5.5% in a second entertain and $51.1 million or 9.7% in a third quarter,
- Stockholders’ equity augmenting $15.5 million to $57.4 million, or 8.4% of sum assets, during September 30, 2017 as a outcome of a collateral charity that occurred progressing in 2017.
- Asset peculiarity continues to trend definitely as nonperforming resources as a commission of loans, net and other genuine estate owned declined to 1.26% during September 30, 2017 compared to 1.41% during June 30, 2017 and 2.15% during September 30, 2016.
- Tax-equivalent net seductiveness income continued to arrangement compared entertain alleviation in 2017 augmenting from $4.5 million in a initial quarter, to $ 5.0 million in a second entertain and $5.5 million in a third quarter.
- For a 9 months finished September 30, 2017 and 2016, noninterest income from fiduciary and resources supervision activities softened $133 thousand or 14.3%.
“We finished a partnership with CBT Financial Corp. effective October 1, 2017 and are gratified to acquire their customers, shareholders, and employees to Riverview. We are assured that shareholders will commend a well-developed value sum by a multiple of dual village banks carrying prolonged determined histories of providing glorious use and endless village support to Central and Southwestern Pennsylvania. This partnership was a judicious step in a announced devise to enhance via Central Pennsylvania and into markets with appealing demographics and long-term expansion potential. The further of a new lending teams has supposing net loan expansion of some-more than $55.4 million in a third entertain and $150.8 million for a 9 months finished September 30, 2017,” settled Kirk D. Fox, Chief Executive Officer. “In further to a execution of a merger, we are gratified to announce a opening of a new bend bureau in Williamsport, PA, that is a opening into a Lycoming County market,” resolved Fox.
Brett D. Fulk, President, added, “The vital initiatives set into suit during early 2017, as good as compared expenses, positioned us to take advantage of both organic and partnership compared expansion opportunities. Organic expansion and following income era to date has exceeded a expectations as a approach outcome of a gifted group members we have total via a footprint, including State College, a larger Harrisburg civil area, and Berks County, all of that continue to be prolific given a ongoing aspirant intrusion within these markets.” Fulk continued, “year-to-date 2017 item era positioned us to fast overcome a poignant investments done in a personnel, infrastructure and beyond compulsory to gain on destiny essential item era opportunities. However, while essential expansion will sojourn a pivotal member of a vital devise we sojourn focused on correct credit structure, underwriting parameters and progressing a high peculiarity credit culture, evidenced by stability certain trends in a credit peculiarity metrics.” Fulk concluded, “despite a apparent expansion story over a past several years during Riverview, and a delay of that story during 2017, we know that for a evident destiny a concentration contingency be internal, and will sojourn so for as prolonged as it takes to safeguard a successful formation of CBT Financial Corp and CBT Bank with and into Riverview Financial Corporation and Riverview Bank. We trust this vital business multiple truly enhances a ability to continue providing a valued shareholders attractive, prolonged tenure earnings on their investment in Riverview. However, we know that successful integration, that requires focus, is compulsory to grasp a elite results.“
INCOME STATEMENT REVIEW
Tax-equivalent net seductiveness income for a 3 and 9 months finished September 30 were $5.5 million and $15.0 million in 2017 compared to $4.8 million and $14.0 million in 2016, respectively. The boost in taxation homogeneous net seductiveness income was essentially attributable to a auspicious volume opposite from an boost in normal seductiveness earning resources surpassing a expansion of normal seductiveness temperament liabilities. Partially offsetting a certain impact of net normal item expansion was an adverse rate opposite caused by a diminution in a tax-equivalent net seductiveness margin. The boost in seductiveness earning resources exceeded a expansion of normal seductiveness temperament liabilities by $15.2 million comparing a third buliding of 2017 and 2016. For a 3 months finished September 30, a tax-equivalent net seductiveness domain decreased to 3.57% in 2017 from 3.99% in 2016. Average earning resources augmenting $76.1 million while normal seductiveness temperament liabilities augmenting $56.4 million comparing a 9 months finished September 30, 2017 and 2016. Loans, net averaged $478.0 million in 2017 and $402.9 million in 2016. Average investments totaled $71.3 million in 2017 and $72.1 million in 2016. The tax-equivalent net seductiveness domain for a 9 months finished September 30, 2017, declined 27 basement points from 3.85% for a allied duration of 2016. The tax-equivalent produce on a loan portfolio decreased to 0.21% in 2017 compared to 4.56% in 2016. For a 9 months finished September 30, a tax-equivalent produce on earning resources decreased to 4.16% in 2017 from 4.30% in 2016. The cost of supports augmenting 16 basement points in 2017 from 0.53% in 2016. The tax-equivalent net seductiveness domain decreased somewhat by 1 basement indicate to 3.57% in a third entertain of 2017 from 3.58% in a second entertain of 2017. Average earning resources augmenting $52.4 million while normal seductiveness temperament liabilities augmenting $55.5 million comparing a third and second buliding of 2017.
For a entertain finished September 30, a sustenance for loan waste augmenting to $610 thousand in 2017 from $29 thousand in 2016. The sustenance for loan waste totaled $1.7 million for a 9 months finished September 30, 2017, compared to $284 thousand in 2016. The boost in a sustenance for loan waste in 2017 was essentially shabby by poignant loan expansion originated by a successful employing of teams of lenders.
For a 3 months finished September 30, noninterest income totaled $835 thousand in 2017, a diminution of $188 thousand from $1,023 thousand in 2016. The diminution was essentially attributable to a diminution in net gains famous on a sale of available-for-sale investment securities. Wealth supervision income decreased $15 thousand while debt banking income decreased $5 thousand comparing a third buliding of 2017 and 2016. For a 9 months ended, noninterest income decreased to $2.4 million in 2017 from $2.7 million in 2016. The year over year diminution of $378 thousand in net gains famous on a sale of available-for-sale investment bonds was partially equivalent by improvements in resources supervision income of $100 thousand.
For a entertain finished September 30, noninterest responsibility augmenting $834 thousand to $5.2 million in 2017 from $4.3 million in 2016. Noninterest responsibility augmenting $2.7 million, or 21.3%, to $15.4 million for a 9 months finished September 30, 2017, from $12.7 million for a same duration final year. The infancy of a boost in salaries and worker advantage responsibility was a outcome of employing lending teams and compared costs, as good as a opening of new, full use offices in Temple, Berks County, Pennsylvania and Williamsport, Lycoming County, Pennsylvania. Additions to leased comforts for these newly non-stop offices along with offices to support a lending teams were essentially obliged for a $278 thousand, or 17.2%, boost in occupancy and apparatus costs. The boost in other waste comparing a 9 months finished September 30, 2017 and 2016 was a outcome of incurring partnership compared costs of $375 thousand in 2017.
BALANCE SHEET REVIEW
Total assets, loans, net and deposits totaled $681.4 million, $560.2 million, and $575.0 million, respectively, during September 30, 2017. Loans, net augmenting $55.4 million, or 11.0% in a third entertain of 2017 and $150.8 million, or 36.9%, for a 9 months finished September 30, 2017. Growth in blurb loans was essentially obliged for a infancy of a improvement. Total deposits augmenting $51.1 million, or 9.7%, in a third entertain of 2017 and $122.4 million, or 27.0%, for a 9 months finished September 30, 2017. Noninterest-bearing deposits augmenting $2.3 million, while interest-bearing deposits augmenting $120.1 million for a 9 months finished September 30, 2017. An alleviation in a volume of income marketplace accounts was essentially obliged for a boost in interest-bearing deposits.
Stockholders’ equity totaled $57.4 million, or $11.73 per common share, during September 30, 2017, as compared to $41.9 million, or $12.95 per common share, during December 31, 2016. The year-to-date boost in equity in 2017 was a outcome of a execution of a sale of approximately $17.0 million in common and elite equity, before expenses, to accredited investors and competent institutional buyers by a private placement. Effective as of a tighten of business on June 22, 2017, Riverview filed an amendment to a Articles of Incorporation to sanction a category of non-voting common batch after receiving shareholder capitulation on June 21, 2017. As a result, any share of Series A elite batch was automatically converted into one share of non-voting common batch as of a effective date. The non-voting common batch has a same relations rights as, and is matching in all respects with, any other share of common batch of Riverview, solely that holders of non-voting common batch do not have voting rights. Tangible stockholders’ equity per common share decreased to $10.47 per share during September 30, 2017, compared to $10.84 per share during year-end 2016. Dividends announced for a 9 months finished September 30, 2017 amounted to $0.41 per share. The annualized division produce formed on a shutting cost of $13.20 per share on September 30, 2017 was 4.2%.
ASSET QUALITY REVIEW
Nonperforming resources were $7.1 million, or 1.3% of loans, net and foreclosed resources during September 30, 2017, an alleviation from $8.2 million, or 2.0%, during December 31, 2016, and $8.6 million, or 2.2%, during September 30, 2016. Adjusting for accruing restructured loans, non-performing resources were $1.9 million, or 0.3% of loans, net and foreclosed resources during September 30, 2017, $2.4 million or 0.6% during December 31, 2016, and $2.6 million, or 0.7%, during September 30, 2016. The stipend for loan waste equaled $5.4 million, or 0.96% of loans, net during September 30, 2017, compared to $3.7 million, or 0.91% of loans, net during December 31, 2016, and $3.6 million, or 0.91% of loans, net, during September 30, 2016. Loans charged-off, net of recoveries, for a 3 and 9 months finished September 30, equaled $40 thousand and $62 thousand in 2017, respectively, compared to $1 thousand and $1.0 million for a allied durations final year.
Riverview Financial Corporation is a primogenitor association of Riverview Bank and a handling groups Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, CBT Bank, Riverview Wealth Management, CBT Investment Services, Inc. and CBT Financial and Trust Management. An eccentric village bank, Riverview Bank serves the Pennsylvania marketplace area of Berks, Blair, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lycoming, Northumberland, Perry, Schuylkill and Somerset Counties by 30 village banking offices and 3 singular purpose offices. Each office, interdependent with a community, offers a extensive array of financial products and services to individuals, businesses, not-for-profit organizations and supervision entities. The Wealth Management and Trust groups with resources underneath supervision surpassing $350 million provides trust and investment advisory services to a ubiquitous public. Riverview’s business truth includes charity approach entrance to comparison supervision and other officers and providing friendly, sensitive and well-behaved service, internal and timely preference making, stretchable and reasonable handling procedures and consistently practical credit policies. The Company’s common batch trades on a OTCQX Market underneath a pitch “RIVE”. The Investor Relations site can be accessed during https://www.riverviewbankpa.com/.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we might from time to time make other statements per a opinion or expectations for destiny financial or handling formula and/or other matters per or inspiring Riverview Financial Corporation, Riverview Bank, and a subsidiaries (collectively, “Riverview“) that might be deliberate “forward-looking statements” as discernible in Section 27A of a Securities Act of 1933, as amended, and Section 21E of a Securities Exchange Act of 1934, as amended. Such forward-looking statements might be identified by a use of such difference as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential.” For these statements, Riverview claims a insurance of a orthodox protected harbors for forward-looking statements.
Riverview cautions we that a series of critical factors could means discernible formula to differ materially from those now approaching in any forward-looking statement. Such factors include, though are not singular to: prevalent mercantile and domestic conditions, quite in a marketplace area; credit risk compared with a lending activities; changes in seductiveness rates, loan demand, genuine estate values and competition; changes in accounting principles, policies, and guidelines; changes in any germane law, rule, law or use with honour to taxation or authorised issues; and other economic, competitive, governmental, regulatory and technological factors inspiring Riverview‘ operations, pricing, products and services and other factors that might be described in Riverview‘ Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with a Securities and Exchange Commission from time to time.
In further to these risks, acquisitions and business combinations benefaction risks other than those presented by a inlet of a business acquired. Acquisitions and business combinations might be almost some-more costly to finish than creatively anticipated, and a approaching advantages might be significantly harder-or take longer-to grasp than expected. As regulated financial institutions, a office of appealing merger and business multiple opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or authorised issues compared to a preacquisition operations of an acquired or sum business might means reputational mistreat to Riverview following a merger or combination, and formation of a acquired or sum business with ours might outcome in additional destiny costs outset as a outcome of those issues.
The forward-looking statements are done as of a date of this release, and, solely as might be compulsory by germane law or regulation, Riverview assumes no requirement to refurbish a forward-looking statements or to refurbish a reasons since discernible formula could differ from those projected in a forward-looking statements.
In further to evaluating a formula of operations in suitability with accounting beliefs generally supposed in the United States of America (“GAAP”), Riverview customarily presents and supplements a research with an research of certain non-GAAP financial measures, such as discernible stockholders’ equity and core net income ratios. The reported formula for a 3 and 9 months finished September 30, 2017 and 2016, enclose equipment that Riverview considers non-core, namely net gains on sales of investment bonds available-for-sale and merger compared expenses. Riverview presents a non-GAAP financial measures since it believes that these measures yield useful and analogous information to consider trends in Riverview’s formula of operation. Presentation of these non-GAAP financial measures is unchanging with how Riverview evaluates a opening internally and these non-GAAP financial measures are frequently used by bonds analysts, investors and other meddlesome parties in research of companies in Riverview’s industry. Where non-GAAP measures are used in this press release, reconciliations to a allied GAAP measures are supposing in a concomitant tables. The non-GAAP financial measures Riverview uses might differ from likewise patrician non-GAAP financial measures of other financial institutions. These non-GAAP financial measures would not be deliberate a surrogate for GAAP basement measures, and Riverview strongly encourages a examination of a precipitated combined financial statements in their entirety. Reconciliations of these non-GAAP financial measures to a many directly allied GAAP measures are presented in a tabular element that follows.
[TABULAR MATERIAL FOLLOWS]
.
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, solely per share data)
Sept 30
Jun 30
Mar 31
Dec 31
Sept 30
2017
2017
2017
2016
2016
Three months ended:
Core net income (loss) per common share:
Net income (loss)
$401
$179
$(567)
$488
$971
Dividends on elite stock
(186)
(185)
Net income (loss) accessible to common stockholders
401
(7)
(752)
488
971
Undistributed detriment (income) allocated to elite stockholders
128
347
Income (loss) allocated to common stockholders
401
121
(405)
488
971
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax
29
42
(1)
100
Add: Acquisition compared expenses, net of tax
70
111
67
3
Net income (loss) Core
$442
$190
$(337)
$488
$874
Average common shares outstanding
4,880,676
3,655,446
3,454,704
3,232,359
3,224,053
Core net income (loss) per common share
$ 0.09
$ 0.05
$ (0.10)
$ 0.15
$ 0.27
Tangible book value:
Total stockholders’ equity
$57,379
$57,515
$43,808
$41,920
$44,161
Less: Goodwill
5,079
5,079
5,079
5,408
5,408
Less: Other unsubstantial assets, net
1,099
1,170
1,241
1,405
1,497
Total discernible stockholders’ equity
$51,201
$51,266
$37,488
$35,107
$37,256
Common shares outstanding
4,892,143
4,876,774
3,518,351
3,237,859
3,229,467
Tangible book value per share
$ 10.47
$ 10.51
$ 10.65
$ 10.84
$ 11.54
Core lapse on normal stockholders’ equity:
Net income (loss) GAAP
$401
$179
$(567)
$488
$971
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax
29
42
(1)
100
Add: Acquisition compared expenses, net of tax
70
111
67
3
Net income (loss) Core
$442
$248
$(499)
$488
$874
Average stockholders’ equity
$ 57,451
$ 57,349
$ 54,763
$ 43,185
$ 44,232
Core lapse on normal stockholders’ equity
3.05%
1.73%
(3.70)%
4.50%
7.86%
Return on normal discernible equity:
Net income (loss) GAAP
$ 401
$ 179
$ (567)
$ 488
$ 971
Average stockholders’ equity
$ 57,451
$ 57,349
$ 54,763
$ 43,185
$ 44,232
Less: normal intangibles
6,213
6,284
6,765
6,857
6,956
Average discernible stockholders’ equity
$ 51,238
$ 51,065
$ 47,998
$ 36,328
$ 37,276
Return on normal discernible stockholders’ equity
3.10%
1.41%
(4.79)%
5.34%
10.36%
Core lapse on normal discernible stockholders’ equity:
Net income (loss) GAAP
$401
$179
$(567)
$488
$971
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax
29
42
(1)
100
Add: Acquisition compared expenses, net of tax
70
111
67
3
Net income (loss) Core
$442
$248
$(499)
$488
$874
Average stockholders’ equity
$ 57,451
$ 57,349
$ 54,763
$ 43,185
$ 44,232
Less: normal intangibles
6,213
6,284
6,765
6,857
6,956
Average discernible stockholders’ equity
$ 51,238
$ 51,065
$ 47,998
$ 36,328
$ 37,276
Core lapse on normal discernible stockholders’ equity
3.42%
1.95%
(4.22)%
5.34%
9.33%
Core lapse on normal assets:
Net income (loss) GAAP
$401
$179
$(567)
$488
$971
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax
29
42
(1)
100
Add: Acquisition compared expenses, net of tax
70
111
67
3
Net income (loss) Core
$442
$248
$(499)
$488
$874
Average assets
$ 665,476
$ 609,715
$ 558,061
$ 532,815
$ 530,657
Core lapse on normal assets
0.26%
0.16%
(0.36)%
0.36%
0.66%
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SOURCE Riverview Financial Corporation
