Riverview Bancorp Reports Record First Quarter Profits of $2.8 Million, or $0.25 Per Diluted Share


VANCOUVER, Wash., July 17, 2007 (PRIME NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) today reported excellent core deposit growth and continued excellent credit quality for the first fiscal quarter of 2008 ended June 30, 2007. Net income for the quarter increased 8% to $2.8 million, or $0.25 per diluted share, compared to $2.6 million, or $0.23 per diluted share, in the first quarter of fiscal 2007. All per share data has been adjusted to reflect the August 2006 2-for-1 stock split.

"We have always emphasized building shareholder value, and in the past year that was particularly evident," stated Pat Sheaffer, Chairman and CEO. "We started off last August issuing a 2-for-1 stock split, and raised our cash dividend 5% to $0.10 per diluted share, bringing our dividend yield to 3.0% based on the recent share price. Year-to-date fiscal 2008 we purchased 475,000 shares on the open market under announced Repurchase Plans. We have 525,000 shares remaining to be purchased under the current Repurchase Plan announced June 21, 2007."

First Quarter Fiscal 2008 Financial Highlights (at or for periods ended June 30, 2007, or compared to June 30, 2006)



 * Net income increased 8% to record $2.8 million.
 * Earnings per share increased 9% to $0.25 per diluted share.
 * Core deposits increased 25%.
 * Deposits increased 14% to $692 million.
 * Net interest margin was 4.83%.
 * Total assets increased 5% to $832 million.
 * Riverview Asset Management Corp. increased assets under management
   20% to $302 million.
 * Asset management fees increased 26% to $548,000.

Operating Results

In the first fiscal quarter of 2008, net interest income decreased 2% to $8.8 million compared to $9.0 million in the first fiscal quarter a year earlier reflecting the impact of the increase in funding costs. Non-interest income increased 9% to $2.3 million for the quarter, compared to $2.1 million a year ago, primarily due to fees and service charges which increased 7% to $1.4 million from the year ago period, and fee income from Riverview Asset Management Corp., which increased 26% to $548,000 for the quarter.

For the first quarter of fiscal 2008, the net interest margin was 4.83% compared to 4.95% in the previous linked quarter and 5.23% in the first fiscal quarter a year ago. "As the yield curve remains a challenge for us as well as the entire banking industry, we expect our margin to continue to be under pressure during the second half of the calendar year," said Ron Wysaske, President and COO.

Non-interest expenses were $6.8 million in the first quarter of fiscal 2008, in line with expenses in the first quarter of fiscal 2007. The efficiency ratio increased 10 basis points to 60.93% for the first quarter, compared to 60.83% in the first quarter a year ago. "Last year we increased our infrastructure to accommodate expanding our franchise in Southwest Washington and into Oregon," said Wysaske.

Balance Sheet Growth

Riverview increased its total assets 5% to $832 million at the end of June 2007, compared to $793 million a year ago. Total deposits increased 14% to $692 million at the end of June 2007 compared to $607 million at the end of June 2006. Core deposits, defined as all deposits excluding certificates of deposit, increased 25% over the past year to $511 million, and represents 74% of total deposits. "Although we are in a very competitive market for deposit gathering, we have been very successful at growing core deposits to fund our loan growth," Wysaske said. "Non-interest checking balances represent 12% of total deposits and interest checking balances represent 23% of total deposits."

"The economy in Southwest Washington and Portland, Oregon, generates strong demand for business loans, but we are seeing indications that the pace of growth may be moderating," Wysaske said. "We have been tightening our lending standards; and our goal is to maintain excellent credit quality while keeping our loan portfolio well diversified." Net loans increased slightly to $663 million at June 30, 2007, compared to $659 million a year ago. Commercial and construction loans account for 89% of the total loan portfolio, similar to last year. The following table breaks out loans by category:



                                      At the quarter ended
                                             June 30,
                              --------------------------------------
                                     2007                2006
                              -----------------    -----------------
 LOAN DATA                            (Dollars in thousands)
 ---------
 Commercial and construction
  Commercial                  $ 90,896    13.52%   $ 89,816    13.48%
  Other real estate mortgage   350,219    52.10%    349,176    52.41%
  Real estate construction     158,598    23.60%    152,745    22.93%
                              -----------------    -----------------
   Total commercial and
    construction               599,713    89.22%    591,737    88.82%
 Consumer
  Real estate one-to-four
   family                       67,815    10.09%     70,813    10.63%
  Other installment              4,630     0.69%      3,664     0.55%
                              -----------------    -----------------
   Total consumer               72,445    10.78%     74,477    11.18%

 Total loans                   672,158   100.00%    666,214   100.00%

Shareholders' equity increased 7% to $99.7 million, compared to $93.5 million a year ago. Book value per share improved to $8.62 at the end of June 2007, compared to $8.09 a year earlier, and tangible book value per share improved to $6.32 at quarter-end, compared to $5.77 a year ago. All per share data has been adjusted to reflect the August 2006 2-for-1 stock split.

Credit Quality and Performance Measures

"We have maintained exceptional loan quality while growing the loan portfolio at a moderate pace," noted Wysaske. "We continue to keep a watchful eye on industry and regional trends and closely monitor our credit underwriting." Non-performing assets were $226,000, or 0.03% of total assets, at June 30, 2007, compared to $1.2 million, or 0.15% of total assets, at June 30, 2006. The allowance for loan losses, including unfunded loan commitments of $382,000, was $9.1 million, or 1.36% of net loans at quarter-end, compared to $8.0 million, or 1.20% of net loans, a year ago.

Riverview does not make sub-prime residential real estate loans. Therefore, it has not been affected by the increasing level of delinquencies and defaults that have occurred recently nationwide.

Riverview's 2008 fiscal first quarter return on average assets improved to 1.39%, compared to 1.36% for the first quarter of fiscal 2007. Return on average equity was 11.16% for the quarter, compared to 11.18% for the same quarter last year.

About the Company

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington -- just north of Portland, Oregon on the I-5 corridor. With assets of $832 million, it is the parent company of the 84 year-old Riverview Community Bank, as well as Riverview Mortgage and Riverview Asset Management Corp. There are 18 branches, including ten in fast growing Clark County, three in the Portland metropolitan area and three lending centers. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers.

Statements concerning future performance, developments or events, concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These factors include but are not limited to: RVSB's ability to acquire shares according to internal repurchase guidelines, regional economic conditions and the company's ability to efficiently manage expenses. Additional factors that could cause actual results to differ materially are disclosed in Riverview Bancorp's recent filings with the SEC, including but not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.



 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 Consolidated Balance Sheets
 June 30, 2007, March 31, 2007 and June 30, 2006

 (In thousands, except share data)  (Unaudited)

                                      June 30,    March 31,   June 30,
                                         2007       2007        2006
 ---------------------------------------------------------------------
 ASSETS

 Cash (including interest-earning
  accounts of $47,085,
  $7,818 and $6,754)                  $ 68,082    $ 31,423    $ 26,671
 Investment securities available
  for sale, at fair value
  (amortized cost of $13,734,
  $19,258 and $23,005)                  13,756      19,267      22,847
 Mortgage-backed securities
  held to maturity, at
  amortized cost (fair value of
  $1,150, $1,243 and $1,603)             1,135       1,232       1,580
 Mortgage-backed securities
  available for sale, at fair
  value (amortized cost of
  $6,405, $6,778 and $8,011)             6,201       6,640       7,666
 Loans receivable (net of allowance
  for loan losses of $8,728,
  $8,653 and $7,626)                   663,430     682,951     658,588
 Prepaid expenses and other assets       2,878       1,905       2,164
 Accrued interest receivable             3,686       3,822       3,526
 Federal Home Loan Bank stock, at cost   7,350       7,350       7,350
 Premises and equipment, net            21,155      21,402      19,125
 Deferred income taxes, net              4,126       4,108       3,799
 Mortgage servicing rights, net            347         351         372
 Goodwill                               25,572      25,572      25,572
 Core deposit intangible, net              669         711         845
 Bank owned life insurance              13,753      13,614      13,220
                                      --------    --------    --------
 TOTAL ASSETS                         $832,140    $820,348    $793,325
                                      ========    ========    ========

 LIABILITIES AND SHAREHOLDERS' EQUITY

 LIABILITIES:
 Deposit accounts                     $692,168    $665,405    $607,389
 Accrued expenses and
  other liabilities                      9,675       9,349       9,062
 Advance payments by borrowers
  for taxes and insurance                  162         397         144
 Federal Home Loan Bank advances         5,000      35,050      73,300
 Junior subordinated debentures         22,681       7,217       7,217
 Capital lease obligation                2,713       2,721       2,745
                                      --------    --------    --------
 Total liabilities                     732,399     720,139     699,857

 SHAREHOLDERS' EQUITY:
 Serial preferred stock, $.01 par
  value; 250,000 authorized, issued
  and outstanding, none                     --          --          --
 Common stock, $.01 par value;
  50,000,000 authorized, June 30, 2007
  - 11,566,980 issued,
  11,566,980 outstanding;
  March 31, 2007 - 11,707,980 issued,
  11,707,980 outstanding; June 30,
  2006 - 5,780,090 issued,
  5,780,086 outstanding on a
  pre-split basis                          115         117          57
 Additional paid-in capital             56,450      58,438      57,529
 Retained earnings                      44,379      42,848      37,348
 Unearned shares issued to
  employee stock ownership trust        (1,083)     (1,108)     (1,134)
 Accumulated other comprehensive loss     (120)        (86)       (332)
                                      --------    --------    --------
 Total shareholders' equity             99,741     100,209      93,468
                                      --------    --------    --------
 TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                $832,140    $820,348    $793,325
                                      ========    ========    ========


 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Income for the Three Months
  Ended June 30, 2007 and 2006
 (In thousands, except share data)   (Unaudited)

                                                  Three Months Ended
                                                        June 30,
                                                   2007         2006
 ---------------------------------------------------------------------
 INTEREST INCOME:
 Interest and fees on loans receivable         $   14,880   $   13,769
 Interest on investment securities-taxable            172          221
 Interest on investment securities-non taxable         38           42
 Interest on mortgage-backed securities                91          114
 Other interest and dividends                         243           52
                                               -----------------------
     Total interest income                         15,424       14,198
                                               -----------------------

 INTEREST EXPENSE:
 Interest on deposits                               6,190        4,222
 Interest on borrowings                               406          963
                                               -----------------------
     Total interest expense                         6,596        5,185
                                               -----------------------
     Net interest income                            8,828        9,013
     Less provision for loan losses                    50          350
                                               -----------------------
   Net interest income after provision
    for loan losses                                 8,778        8,663
                                               -----------------------
 NON-INTEREST INCOME:
   Fees and service charges                         1,427        1,331
   Asset management fees                              548          436
   Gain on sale of loans held for sale                 91           72
   Loan servicing income                               39           45
   Gain on sale of credit card portfolio               --           67
   Bank owned life insurance income                   139          128
   Other                                               58           36
                                               -----------------------
     Total non-interest income                      2,302        2,115
                                               -----------------------
 NON-INTEREST EXPENSE:
 Salaries and employee benefits                     3,968        3,835
 Occupancy and depreciation                         1,302        1,074
 Data processing                                      168          335
 Amortization of core deposit intangible               42           50
 Advertising and marketing expense                    282          302
 FDIC insurance premium                                19           24
 State and local taxes                                171          155
 Telecommunications                                   104          112
 Professional fees                                    223          178
 Other                                                502          704
                                               -----------------------
 Total non-interest expense                         6,781        6,769
                                               -----------------------

 INCOME BEFORE INCOME TAXES                         4,299        4,009
 PROVISION FOR INCOME TAXES                         1,460        1,378
                                               -----------------------
 NET INCOME                                    $    2,839   $    2,631
                                               =======================

 Earnings per common share:
   Basic                                       $     0.25   $     0.23
   Diluted                                     $     0.25   $     0.23
 Weighted average number of
  shares outstanding:
   Basic                                       11,391,825   11,265,971
   Diluted                                     11,527,586   11,443,153


RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)


                            At or for the            At or for the year
                      three months ended June 30,      ended March 31,
                      2007               2006               2007
                --------------     --------------    ------------------
 FINANCIAL
 CONDITION DATA              (Dollars in thousands)
 ---------------
 Average
  interest-
  earning
  assets        $734,135           $692,283           $731,089
 Average
  interest-
  bearing
  liabilities    620,930            574,714            614,546
 Net average
  earning assets 113,205            117,569            116,543
 Non-performing
  assets             226              1,173                226
 Non-performing
  loans              226              1,173                226
 Allowance for
  loan losses      8,728              7,626              8,653
 Allowance for
  loan losses
  and unfunded
  loan
  commitments      9,110              8,002              9,033
 Average
  interest-
  earning assets
  to average
  interest-
  bearing
  liabilities     118.23%            120.46%            118.96%
 Allowance for
  loan losses to
  non-performing
  loans          3861.95%            650.13%           3828.76%
 Allowance for
  loan losses to
  net loans         1.30%              1.14%              1.25%
 Allowance for
  loan losses and
  unfunded loan
  commitments to
  net loans         1.36%              1.20%              1.31%
 Non-performing
  loans to total
  net loans         0.03%              0.18%              0.03%
 Non-performing
  assets to total
  assets            0.03%              0.15%              0.03%
 Shareholders'
  equity to
  assets           11.99%             11.78%             12.22%
 Number of
  banking
  facilities          19                 18                 19

 LOAN DATA (a)
 Commercial and
  construction
   Commercial   $ 90,896   13.52%  $ 89,816   13.48%  $ 91,174   13.18%
   Other real
    estate
    mortgage     350,219   52.10%   349,176   52.41%   360,930   52.19%
   Real estate
    construction 158,598   23.60%   152,745   22.93%   166,073   24.01%
                ------------------------------------------------------
     Total
      commercial
      and con-
      struction  599,713   89.22%   591,737   88.82%   618,177   89.38%
 Consumer
  Real estate
   one-to-four
   family         67,815   10.09%    70,813   10.63%    69,808   10.10%
  Other
   installment     4,630    0.69%     3,664    0.55%     3,619    0.52%
                ------------------------------------------------------
    Total
     consumer     72,445   10.78%    74,477   11.18%    73,427   10.62%

 Total loans     672,158  100.00%   666,214  100.00%   691,604  100.00%

 Less:
  Allowance for
   loan losses     8,728              7,626              8,653
                --------           --------           --------
  Loans receiv-
   able, net    $663,430           $658,588           $682,951
                ========           ========           ========

 (a) Certain prior period loan balances have been reclassified
     to conform to management's current year presentation.


 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 FINANCIAL HIGHLIGHTS
 (Unaudited)

 COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOAN TYPES
 BASED ON LOAN PURPOSE
 -----------------------------------------------------
                       Commercial                Other
                           &                      Real
                      Construction               Estate    Real Estate
                          Total     Commercial  Mortgage  Construction
                      ------------  ----------  --------  ------------
    June 30, 2007                  (Dollars in thousands)
    -------------
 Commercial             $ 90,896     $ 90,896   $     --    $     --
 Commercial
  construction            56,547           --         --      56,547
 Office buildings         61,844           --     61,844          --
 Warehouse/industrial     37,755           --     37,755          --
 Retail/shopping
  centers/strip malls     67,595           --     67,595          --
 Assisted living
  facilities              11,089           --     11,089          --
 Single purpose
  facilities              40,816           --     40,816          --
 Land                    101,113           --    101,113          --
 Multi-family             30,007           --     30,007          --
 One-to-four family      102,051           --         --     102,051
                      ------------  ----------  --------  ------------
   Total                $599,713     $ 90,896   $350,219    $158,598
                      ============  ==========  ========  ============

    March 31, 2007
    --------------
 Commercial             $ 91,174     $ 91,174   $     --    $     --
 Commercial
  construction            56,226           --         --      56,226
 Office buildings         62,310           --     62,310          --
 Warehouse/industrial     40,238           --     40,238          --
 Retail/shopping
  centers/strip malls     70,219           --     70,219          --
 Assisted living
  facilities              11,381           --     11,381          --
 Single purpose
  facilities              41,501           --     41,501          --
 Land                    103,240           --    103,240          --
 Multi-family             32,041           --     32,041          --
 One-to-four family      109,847           --         --     109,847
                      ------------  ----------  --------  ------------
   Total                $618,177     $ 91,174   $360,930    $166,073
                      ============  ==========  ========  ============


                                                         At the year
                At the three months ended June 30,      ended March 31,
                      2007              2006                 2007
 DEPOSIT DATA   ----------------   ----------------   ----------------
 ------------                    (Dollars in thousands)
 Interest
  checking      $161,299   23.30%  $144,120   23.73%  $144,451   21.71%
 Regular
  savings         27,849    4.02%    34,871    5.74%    29,472    4.43%
 Money market
  deposit
  accounts       240,251   34.71%   134,010   22.06%   205,007   30.81%
 Non-interest
  checking        81,512   11.78%    96,636   15.91%    86,601   13.01%
 Certificates of
  deposit        181,257   26.19%   197,752   32.56%   199,874   30.04%
                ------------------------------------------------------
 Total
  deposits      $692,168  100.00%  $607,389  100.00%  $665,405  100.00%
                ======================================================


 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 FINANCIAL HIGHLIGHTS
 (Unaudited)
                                                          At or for the
                                     At or for the three    year ended
                                    months ended June 30,    March 31,
 SELECTED OPERATING DATA              2007         2006         2007
 -----------------------           ---------    ---------    ---------
                                         (Dollars in thousands,
                                            except share data)

 Efficiency ratio (d)                  60.93%       60.83%       57.85%
 Efficiency ratio net of intangible
  amortization                         60.34%       60.18%       57.22%
 Coverage ratio (f)                   130.19%      133.15%      138.57%
 Coverage ratio net of intangible
  amortization                        131.00%      134.14%      139.55%
 Return on average assets (a)           1.39%        1.36%        1.43%
 Return on average equity (a)          11.16%       11.18%       11.88%
 Average rate earned on
  interest-earned assets                8.44%        8.24%        8.40%
 Average rate paid on
  interest-bearing liabilities          4.26%        3.62%        4.03%
 Spread (g)                             4.18%        4.62%        4.37%
 Net interest margin                    4.83%        5.23%        5.01%

 PER SHARE DATA
 ---------------
 Basic earnings per share (b)      $    0.25    $    0.23    $    1.03
 Diluted earnings per share (c)         0.25         0.23         1.01
 Book value per share (e)               8.62         8.09         8.56
 Tangible book value
  per share (e)                         6.32         5.77         6.28
 Market price per share:
   High for the period             $  16.280    $   13.53    $  17.580
   Low for the period                 13.690        12.14       12.135
   Close for period end               13.690        13.10       15.940
 Cash dividends declared
  per share                            0.110        0.095        0.395

 Average number of shares
  outstanding:
   Basic (b)                      11,391,825   11,265,971   11,312,847
   Diluted (c)                    11,527,586   11,443,153   11,516,232

  (a) Amounts are annualized.
  (b) Amounts calculated exclude ESOP shares not committed to be
      released.
  (c) Amounts calculated exclude ESOP shares not committed to be
      released and include common stock equivalents.
  (d) Non-interest expense divided by net interest income and
      non-interest income.
  (e) Amounts calculated include ESOP shares not committed to be
      released.
  (f) Net interest income divided by non-interest expense.
  (g) Yield on interest-earning assets less cost of funds on interest
      bearing liabilities.


            

Contact Data