VANCOUVER, Wash., April 30, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today announced earnings for the fourth quarter and full year ended March 31, 2019. For the fourth quarter, the Company reported net income of $4.2 million, or $0.19 per diluted share.  This is compared to net income of $4.4 million, or $0.19 per diluted share, in the preceding quarter and $3.0 million, or $0.13 per diluted share, in the fourth fiscal quarter a year ago. For the full fiscal year, Riverview reported net income of $17.3 million, or $0.76 per diluted share, a 69% increase over the prior year.

“The fourth quarter was a healthy finish to a successful year for Riverview”, said Kevin Lycklama, president and chief executive officer. “Our team finished the year strong achieving record earnings driven by high-quality loan growth, solid revenue generation, expense management and a focus on continuous improvement. As we head into the next fiscal year, we have positive momentum, a strong team of seasoned bankers and are well-positioned to generate solid operating results.”   

Fourth Quarter Highlights (at or for the period ended March 31, 2019)

  • Net income of $4.2 million, or $0.19 per diluted share.
  • Net interest margin (NIM) was 4.39% for the quarter.
  • Return on average assets of 1.49% for the fourth quarter.
  • Return on average equity of 12.98% for the fourth quarter.
  • Total loans were $876.1 million at March 31, 2019, an 8.0% increase compared to $811.4 million a year ago.
  • Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter.
  • Non-performing assets improved to 0.13% of total assets.
  • Total risk-based capital ratio was 16.88% and Tier 1 leverage ratio was 11.56%.
  • Paid a quarterly cash dividend of $0.04 per share, generating a current dividend yield of 2.17% based on the April 29, 2019 share price.

Income Statement

In the fourth fiscal quarter of 2019, the return on average assets increased to 1.49% compared to 1.08% in the fourth fiscal quarter of 2018. The return on average equity and average tangible equity (non-GAAP) increased to 12.98% and 16.50%, respectively, compared to 10.39% and 13.67% for the fourth fiscal quarter a year ago.

Total revenue increased $80,000 during the quarter to $14.5 million and increased $1.2 million compared to the same quarter a year ago. The increase in total revenue was driven by an increase in both interest income and noninterest income. 

Net interest income for the quarter was $11.5 million compared to $11.7 million in the preceding quarter and $10.7 million in the fourth fiscal quarter a year ago. The decline in net interest income compared to the preceding quarter was attributable to higher funding costs as well as two fewer days in the quarter. In fiscal 2019, net interest income increased $3.7 million, or 8.7%, to $46.3 million compared to $42.6 million in fiscal 2018.

“Our net interest margin increased from a year ago and remained stable compared to the immediate prior quarter, reflecting the overall increase in interest-earning assets in addition to higher yields on these assets,” said David Lam, executive vice president and chief financial officer. “However, increased competition for loans and deposits and a flattening yield curve remains a challenge.”

Riverview’s fourth fiscal quarter net interest margin was 4.39%, which was unchanged from the third fiscal quarter, and a 25-basis point increase when compared to 4.14% in the fourth fiscal quarter a year ago. The accretion on purchased loans totaled $198,000 during the current quarter compared to $172,000 during the preceding quarter resulting in a seven-basis point increase in the NIM for both the current period and the preceding linked quarter. In fiscal year 2019, Riverview’s NIM increased 30 basis points to 4.38% compared to 4.08% in fiscal 2018.

The weighted average rate on loans originated during the quarter ended March 31, 2019 was 5.81% compared to 6.04% for the quarter ended December 31, 2018 and 5.17% for the quarter ended March 31, 2018.

Non-interest income increased to $3.0 million in the fourth fiscal quarter compared to $2.8 million in the preceding quarter and $2.7 million in the same quarter a year ago. For fiscal year 2019, non-interest income increased 7.8% to $11.9 million compared to $11.0 million for fiscal 2018. The increase in non-interest income was primarily driven by an increase in fees and service charges and asset management fees. Loan prepayment fees increased $285,000 during the fourth fiscal quarter compared to the preceding quarter and increased $397,000 year over year. Other gains for the year included growth in debit card interchange revenue and an expansion in our merchant bankcard program. These increases were offset by a decrease in the net gain on sales from loans held for sale due to a decrease in mortgage banking activity.

Asset management fees increased to $987,000 in the fourth fiscal quarter of 2019 compared to $935,000 in the preceding quarter and $866,000 in the fourth fiscal quarter a year ago. For fiscal year 2019, asset management fees increased $343,000 to $3.8 million. Riverview Trust Company’s assets under management grew to $646.0 million at March 31, 2019 compared to $570.4 million three months earlier and $484.3 million one year earlier.

Non-interest expense was $9.0 million during the fourth fiscal quarter of 2019 compared to $8.8 million in the preceding quarter. The increase was primarily related to a $355,000 gain on sale of building related to the Longview branch closing in September 2018, which was recorded in other non-interest expense during the preceding quarter. The efficiency ratio was 61.63% for the fourth fiscal quarter compared to 60.87% in the preceding quarter and 68.52% in the fourth fiscal quarter a year ago. For all of fiscal 2019, non-interest expense was $35.7 million compared to $35.6 million in fiscal 2018. While the Company continues to focus on controlling its expenses; however, we are moving forward with enhancements to our infrastructure for information technology, cybersecurity and our digital delivery channels.

Riverview’s effective tax rate for fiscal year 2019 was 23.0% compared to 43.1% for fiscal year 2018. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017 and the related deferred tax asset valuation adjustment during fiscal year 2018.

Balance Sheet Review

Riverview’s total loans increased $7.5 million during the quarter, a 3.5% annualized increase, to $876.1 million and increased $64.7 million, or 8.0%, when compared to $811.4 million a year ago. The growth during the quarter was mostly concentrated in commercial loans and commercial construction loans with an offsetting decrease in multi-family and single purpose commercial real estate loans. The decrease in single purpose loans was primarily concentrated in hotel loans and auto repair/gas station loans. While loan demand has remained solid, loan balances have continued to be impacted by pay downs on existing loans.

The loan pipeline totaled $38.2 million at March 31, 2019 compared to $33.6 million at the end of the prior quarter. Undisbursed construction loans totaled $63.0 million at March 31, 2019 compared to $79.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

Total deposits were $925.1 million at March 31, 2019 compared to $943.6 million three months earlier and $995.7 million a year ago. Money market and certificates of deposit accounts continue to bear the greatest pressure, due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $133.1 million at March 31, 2019 compared to $128.1 million three months earlier and $116.9 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.65 at March 31, 2019 compared to $4.43 at December 31, 2018 and $3.93 at March 31, 2018. A quarterly cash dividend of $0.04 per share was paid on April 23, 2019.

Credit Quality

Asset quality continues to improve and remained strong throughout the quarter. As a result of this improvement in asset quality, along with the steady low level of net charge-offs, Riverview recorded no provision for loan losses during the fourth fiscal quarter of 2019, the preceding linked quarter or the fourth fiscal quarter of 2018. For fiscal year 2019, Riverview recorded a $50,000 provision for loan losses.

Non-performing loans improved to $1.5 million, or 0.17% of total loans, at March 31, 2019 compared to $1.6 million, or 0.19% of total loans, three months earlier and $2.4 million, or 0.30% of total loans, at March 31, 2018. Riverview had no real estate owned balances at March 31, 2019 and December 31, 2018 compared to $298,000 at March 31, 2018.

Net loan charge offs were $45,000 during the fourth fiscal quarter of 2019 compared to net loan charge offs of $11,000 during the third fiscal quarter of 2019 and $101,000 during the fourth fiscal quarter a year ago.  For fiscal 2019, Riverview recorded loan recoveries of $641,000 which was primarily driven by $783,000 in net recoveries during the first quarter of fiscal 2019 from the collection of a prior charge off on a single loan.

Classified assets totaled $6.3 million at March 31, 2019 compared to $6.0 million at December 31, 2018 and $7.7 million at March 31, 2018. The classified asset to total capital ratio was 4.5% at March 31, 2019 compared to 4.4% three months earlier and 6.2% a year earlier.

The allowance for loan losses totaled $11.5 million, which was unchanged compared to the preceding quarter end. The allowance for loan losses represented 1.31% of total loans at March 31, 2019 compared to 1.32% of total loans at December 31, 2018. Included in the carrying value of loans are net discounts on the MBank purchased loans which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $1.5 million at March 31, 2019 compared to $1.7 million at the end of the prior quarter and $2.2 million at March 31, 2018.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.88% and a Tier 1 leverage ratio of 11.56% at March 31, 2019. The Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 9.31% at March 31, 2019.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. We believe that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible shareholders’ equity is calculated as shareholders’ equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets. We calculate tangible book value per share by dividing tangible shareholders’ equity by the number of common shares outstanding. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total shareholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

(Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2018
       
Shareholders' equity $  133,122 $  128,094 $  116,901
Goodwill    27,076    27,076    27,076
Core deposit intangible, net    920    966    1,103
Tangible shareholders' equity $  105,126 $  100,052 $  88,722
       
Total assets $  1,156,921 $  1,151,225 $  1,151,535
Goodwill    27,076    27,076    27,076
Core deposit intangible, net    920    966    1,103
Tangible assets $  1,128,925 $  1,123,183 $  1,123,356
       


About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon on the I-5 corridor. With assets of $1.16 billion at March 31, 2019, it is the parent company of the 95-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail clients. There are 18 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 5 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: the Company’s ability to raise common capital; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in the Company’s market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to sell loans in the secondary market; results of examinations of us by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase the Company’s reserve for loan losses, write-down assets, change Riverview Community Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; further increases in premiums for deposit insurance; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; computer systems on which the Company depends could fail or experience a security breach; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may in the future acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; and interest or principal payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.

Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2020 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.


Kevin Lycklama or David Lam                                                                              
Riverview Bancorp, Inc. 360-693-6650


RIVERVIEW BANCORP, INC. AND SUBSIDIARY     
Consolidated Balance Sheets     
      
(In thousands, except share data)  (Unaudited)March 31, 2019 December 31, 2018 March 31, 2018
ASSETS 
  
Cash (including interest-earning accounts of $5,844, $4,641$  22,950  $  23,394  $  44,767 
and $30,052)     
Certificate of deposits held for investment   747     747     5,967 
Loans held for sale   909     -     210 
Investment securities:     
Available for sale, at estimated fair value   178,226     182,280     213,221 
Held to maturity, at amortized cost   35     36     42 
Loans receivable (net of allowance for loan losses of $11,457, $11,502      
and $10,766)   864,659     857,134     800,610 
Real estate owned   -     -     298 
Prepaid expenses and other assets   4,596     4,021     3,870 
Accrued interest receivable   3,919     3,789     3,477 
Federal Home Loan Bank stock, at cost   3,644     2,735     1,353 
Premises and equipment, net   15,458     14,940     15,783 
Deferred income taxes, net   4,195     4,680     4,813 
Mortgage servicing rights, net   296     325     388 
Goodwill   27,076     27,076     27,076 
Core deposit intangible, net   920     966     1,103 
Bank owned life insurance   29,291     29,102     28,557 
      
TOTAL ASSETS$  1,156,921  $  1,151,225  $  1,151,535 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
LIABILITIES:     
Deposits$  925,068  $  943,578  $  995,691 
Accrued expenses and other liabilities   12,536     15,855     9,391 
Advance payments by borrowers for taxes and insurance   631     192     637 
Federal Home Loan Bank advances   56,586     34,543     - 
Junior subordinated debentures   26,575     26,553     26,484 
Capital lease obligations   2,403     2,410     2,431 
Total liabilities   1,023,799     1,023,131     1,034,634 
      
SHAREHOLDERS' EQUITY:     
Serial preferred stock, $.01 par value; 250,000 authorized,     
issued and outstanding, none  -     -     -  
Common stock, $.01 par value; 50,000,000 authorized,     
March 31, 2019 – 22,607,712 issued and outstanding;     
December 31, 2018 - 22,598,712 issued and outstanding;   226     226     226 
March 31, 2018 – 22,570,179 issued and outstanding;     
Additional paid-in capital   65,094     65,056     64,871 
Retained earnings   70,428     67,126     56,552 
Accumulated other comprehensive loss   (2,626)    (4,314)    (4,748)
Total shareholders’ equity   133,122     128,094     116,901 
      
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$  1,156,921  $  1,151,225  $  1,151,535 
 

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY      
Consolidated Statements of Income      
 Three Months Ended Twelve Months Ended
(In thousands, except share data)  (Unaudited)March 31, 2019Dec. 31, 2018March 31, 2018 March 31, 2019March 31, 2018
INTEREST INCOME:   
Interest and fees on loans receivable$  11,338$  11,129$  9,898 $  44,187$  39,659
Interest on investment securities - taxable   1,032   1,110   1,235    4,456   4,648
Interest on investment securities - nontaxable   36   37   36    146   95
Other interest and dividends   58   60   75    329   558
Total interest and dividend income   12,464   12,336   11,244    49,118   44,960
       
INTEREST EXPENSE:      
Interest on deposits   237   240   275    996   1,208
Interest on borrowings   693   416   312    1,819   1,141
Total interest expense   930   656   587    2,815   2,349
Net interest income   11,534   11,680   10,657    46,303   42,611
Provision for loan losses   -   -   -    50   -
       
Net interest income after provision for loan losses   11,534   11,680   10,657    46,253   42,611
       
NON-INTEREST INCOME:      
Fees and service charges   1,743   1,511   1,431    6,699   5,779
Asset management fees   987   935   866    3,791   3,448
Net gain on sale of loans held for sale   39   82   119    317   641
Bank owned life insurance   189   192   201    734   819
Other, net   50   62   46    317   317
Total non-interest income, net   3,008   2,782   2,663    11,858   11,004
       
NON-INTEREST EXPENSE:      
Salaries and employee benefits   5,665   5,794   5,687    22,320   21,743
Occupancy and depreciation   1,318   1,306   1,349    5,334   5,454
Data processing   593   621   583    2,467   2,313
Amortization of core deposit intangible   46   45   58    183   232
Advertising and marketing   160   151   120    769   747
FDIC insurance premium   80   85   87    326   476
State and local taxes   176   125   178    651   605
Telecommunications   87   85   108    353   417
Professional fees   306   449   255    1,426   1,181
Other   531   142   702    1,870   2,450
Total non-interest expense   8,962   8,803   9,127    35,699   35,618
       
INCOME BEFORE INCOME TAXES   5,580   5,659   4,193    22,412   17,997
PROVISION FOR INCOME TAXES   1,373   1,271   1,184    5,146   7,755
NET INCOME$  4,207$  4,388$  3,009 $  17,266$  10,242
       
Earnings per common share:      
Basic$  0.19$  0.19$  0.13 $  0.76$  0.45
Diluted$  0.19$  0.19$  0.13 $  0.76$  0.45
Weighted average number of common shares outstanding:      
Basic 22,605,012 22,598,712 22,565,483  22,588,395 22,531,480
Diluted 22,663,997 22,663,919 22,651,026  22,659,594 22,623,455


(Dollars in thousands) At or for the three months ended At or for the twelve months ended
  March 31, 2019 Dec. 31, 2018 March 31, 2018 March 31, 2019 March 31, 2018
AVERAGE BALANCES          
Average interest–earning assets $  1,066,133  $  1,057,199  $  1,043,755  $  1,059,063 $  1,044,907
Average interest-bearing liabilities  723,805   707,618   735,592   718,595  743,630
Net average earning assets  342,328   349,581   308,163   340,468  301,277
Average loans  869,950   854,368   802,275   844,142  789,204
Average deposits  929,219   967,246   969,916   963,934  978,090
Average equity  131,400   125,252   117,495   124,542  116,669
Average tangible equity (non-GAAP)  103,378   97,182   89,282   96,449  88,371
           
           
ASSET QUALITY March 31, 2019 Dec. 31, 2018 March 31, 2018    
       
Non-performing loans $  1,519  $  1,612  $  2,418     
Non-performing loans to total loans  0.17%  0.19%  0.30%    
Real estate/repossessed assets owned $  -  $ -  $ 298     
Non-performing assets $1,519  $ 1,612  $ 2,716     
Non-performing assets to total assets  0.13%  0.14%  0.24%    
Net loan charge-offs in the quarter $  45  $  11  $  101     
Net charge-offs in the quarter/average net loans  0.02%  0.01%  0.05%    
           
Allowance for loan losses $  11,457  $  11,502  $  10,766     
Average interest-earning assets to average           
  interest-bearing liabilities  147.30%  149.40%  141.89%    
Allowance for loan losses to           
  non-performing loans  754.25%  713.52%  445.24%    
Allowance for loan losses to total loans  1.31%  1.32%  1.33%    
Shareholders’ equity to assets  11.51%  11.13%  10.15%    
           
           
CAPITAL RATIOS          
Total capital (to risk weighted assets)  16.88%  16.35%  15.41%    
Tier 1 capital (to risk weighted assets)  15.63%  15.10%  14.16%    
Common equity tier 1 (to risk weighted assets)  15.63%  15.10%  14.16%    
Tier 1 capital (to average tangible assets)  11.56%  11.22%  10.26%    
Tangible common equity (to average tangible assets) (non-GAAP)  9.31
%  8.91
%  7.90
%    
           
           
DEPOSIT MIX March 31, 2019 Dec. 31, 2018 March 31, 2018    
           
Interest checking $  183,388  $  183,426  $  192,989     
Regular savings    137,503     137,323     134,931   
Money market deposit accounts    233,317     242,081     265,661     
Non-interest checking    284,854     284,939     278,966     
Certificates of deposit    86,006     95,809     123,144     
Total deposits $  925,068  $  943,578  $  995,691     
           

 

COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS     
          
    Other   Commercial 
  Commercial Real Estate Real Estate & Construction 
  Business Mortgage Construction Total 
March 31, 2019 (Dollars in thousands) 
Commercial business $162,796 $- $- $162,796 
Commercial construction  -  -  70,533  70,533 
Office buildings  -  118,722  -  118,722 
Warehouse/industrial  -  91,787  -  91,787 
Retail/shopping centers/strip malls  -  64,934  -  64,934 
Assisted living facilities  -  2,740  -  2,740 
Single purpose facilities  -  183,249  -  183,249 
Land  -  17,027  -  17,027 
Multi-family  -  51,570  -  51,570 
One-to-four family construction  -  -  20,349  20,349 
Total $162,796 $530,029 $90,882 $783,707 
          
March 31, 2018         
Commercial business $137,672 $- $- $137,672 
Commercial construction  -  -  23,158  23,158 
Office buildings  -  124,000  -  124,000 
Warehouse/industrial  -  89,442  -  89,442 
Retail/shopping centers/strip malls  -  68,932  -  68,932 
Assisted living facilities  -  2,934  -  2,934 
Single purpose facilities  -  165,289  -  165,289 
Land  -  15,337  -  15,337 
Multi-family  -  63,080  -  63,080 
One-to-four family construction  -  -  16,426  16,426 
Total $137,672 $529,014 $39,584 $706,270 
          
          
          
          
LOAN MIX March 31, 2019 Dec. 31, 2018 March 31, 2018   
  (Dollars in thousands)   
Commercial and construction         
Commercial business $162,796 $154,360 $137,672   
Other real estate mortgage  530,029  541,797  529,014   
Real estate construction  90,882  76,518  39,584   
Total commercial and construction  783,707  772,675  706,270   
Consumer         
Real estate one-to-four family  84,053  86,240  90,109   
Other installment  8,356  9,721  14,997   
Total consumer  92,409  95,961  105,106   
          
Total loans  876,116  868,636  811,376   
          
Less:         
Allowance for loan losses  11,457  11,502  10,766   
Loans receivable, net $864,659 $857,134 $800,610   
          

 

              
DETAIL OF NON-PERFORMING ASSETS 
         
    Northwest Other  Southwest     
  Oregon Oregon Washington Other Total 
March 31, 2019 (dollars in thousands) 
              
Commercial business $  65 $  - $  160 $  - $  225 
Commercial real estate    -    896    185    -    1,081 
Consumer    -    -    169    44    213 
              
 Total non-performing loans $  65 $  896 $  514 $  44 $  1,519 
              
              
              
              
              
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS     
              
    Northwest Other  Southwest     
  Oregon Oregon Washington Total  
March 31, 2019 (dollars in thousands) 
             
Land development $  2,184 $  1,908 $  12,935 $  17,027  
Speculative construction    1,680    104    15,284    17,068  
             
 Total land development and speculative construction $  3,864 $  2,012 $  28,219 $  34,095  
 


    
   At or for the three months ended At or for the tweleve months ended
SELECTED OPERATING DATAMarch 31, 2019Dec. 31, 2018March 31, 2018 March 31, 2019March 31, 2018
      
Efficiency ratio (4) 61.63
% 60.87
% 68.52
%  61.38
% 66.43
%
Coverage ratio (6) 128.70
% 132.68
% 116.76
%  129.70
% 119.63
%
Return on average assets (1) 1.49% 1.53% 1.08%  1.51% 0.90%
Return on average equity (1) 12.98% 13.90
% 10.39%  13.86% 8.78%
Return on average tangible equity (1) (non-GAAP) 16.50% 17.91
% 13.67%  17.90% 11.59%
       
NET INTEREST SPREAD      
Yield on loans 5.29% 5.17% 5.00%  5.23% 5.03%
Yield on investment securities 2.37% 2.38% 2.32%  2.33% 2.23%
  Total yield on interest-earning assets 4.75% 4.63% 4.37%  4.64% 4.31%
       
Cost of interest-bearing deposits 0.15% 0.14% 0.16%  0.15% 0.17%
Cost of FHLB advances and other borrowings 3.60% 4.35% 3.99%  4.10% 3.85%
  Total cost of interest-bearing liabilities 0.52% 0.37% 0.32%  0.39% 0.32%
       
Spread (7) 4.23% 4.26% 4.05%  4.25% 3.99%
Net interest margin 4.39% 4.39% 4.14%  4.38% 4.08%
       
PER SHARE DATA     
Basic earnings per share (2)$  0.19 $ 0.19 $  0.13  $0.76 $0.45 
Diluted earnings per share (3)   0.19    0.19    0.13     0.76    0.45 
Book value per share (5)   5.89    5.67    5.18     5.89    5.18 
Tangible book value per share (5) (non-GAAP)   4.65    4.43    3.93     4.65    3.93 
Market price per share:      
  High for the period$  8.04 $  8.75 $  9.68  $  9.91 $  9.68 
  Low for the period   7.14    7.03    8.45     7.03    6.51 
  Close for period end   7.31    7.28    9.34     7.31    9.34 
Cash dividends declared per share   0.0400    0.0400    0.0300     0.1500    0.10500 
       
Average number of shares outstanding:      
  Basic (2) 22,605,012  22,598,712  22,565,483   22,588,395  22,531,480 
  Diluted (3) 22,663,997  22,663,919  22,651,026   22,659,594  22,623,455 
  1. Amounts for the quarterly periods are annualized.
  2. Amounts exclude ESOP shares not committed to be released.
  3. Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
  4. Non-interest expense divided by net interest income and non-interest income.
  5. Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
  6. Net interest income divided by non-interest expense.
  7. Yield on interest-earning assets less cost of funds on interest-bearing liabilities.