UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 19, 2004
Riverview Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Washington 0-22957 91-1838969
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
900 Washington Street, Suite 900, Vancouver, Washington 98660
(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code): (360) 693-6650
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
--------------------------------------------------------
On October 19, 2004, Riverview Bancorp, Inc. issued its earnings release
for the quarter ended September 30, 2004. A copy of the earnings release is
attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
--------------------------------------------
(c) Exhibits
99.1 Press Release of Riverview Bancorp, Inc. dated October 19, 2004.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RIVERVIEW BANCORP, INC.
DATE: October 20, 2004 By: /s/ Ronald Dobyns
----------------------------------
Ronald Dobyns
Senior Vice President and
Chief Financial Officer
Exhibit 99.1
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, President/C.O.O., 360-693-6650
RIVERVIEW BANCORP PROFITS INCREASE 20% TO $4.1 MILLION
------------------------------------------------------
FOR THE FIRST SIX MONTHS OF FISCAL 2005
---------------------------------------
Vancouver, WA - October 19, 2004 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported net income for the second quarter of fiscal 2005 was $1.9
million, or $0.39 per diluted share, compared to $1.9 million, or $0.41 per
diluted share in the same fiscal quarter a year ago. Net income for the first
six months of fiscal 2005 grew 20% to $4.1 million, or $0.84 per diluted
share, compared to $3.4 million, or $0.75 per diluted share in the like period
last year. This 20% increase in profits was due to steady loan growth and a
substantial asset sale in the first fiscal quarter.
"We are focused on growing and maintaining a strong balance sheet as we
continue to build our franchise," said Pat Sheaffer, Chairman and CEO. "In
the second quarter we announced plans to build two new bank facilities at the
Columbia Tech Center in Vancouver, Washington, as part of our continuing focus
of expanding in Southwest Washington. The operations center, which is
scheduled to open in 2005, should be large enough to accommodate growth for
the bank and its subsidiaries well into the next decade. The branch office at
192nd avenue in Vancouver would be the 14th Riverview full service branch; the
10th Clark County branch."
Second quarter revenues (net interest income before the provision for loan
losses plus non-interest income) remained steady at $7.5 million in the second
fiscal quarter compared to last year. Fiscal year-to-date, revenues grew 14%
to $15.7 million, compared to $13.7 million for the same period of last fiscal
year. Net interest income before the provision for loan losses increased 7%
to $5.8 million for the quarter, compared to $5.4 million for the like quarter
last fiscal year. For the first six months of fiscal 2005, net interest
income before the provision for loan losses increased 13% to $11.3 million,
compared to $10.0 million for the first six months of fiscal 2004.
"We have managed Riverview's assets and liabilities to take advantage of
rising short-term interest rates; and as a result our net interest margin
increased 29 basis points to 4.89% for the second fiscal quarter, from 4.60%
in the second fiscal quarter last year," Sheaffer added. Riverview's margin
was 4.90% in the first fiscal quarter of 2005. The net interest margin for
the first six months of fiscal 2005 expanded 14 basis points to 4.90% from
4.76% a year earlier.
Non-interest income for the second fiscal quarter was at $1.7 million,
compared to $2.0 million in the like quarter a year ago. Non-interest income
for the second fiscal quarter includes a $2,000 increase in the fair market
value of mortgage servicing rights as compared to a $342,000 increase in the
second fiscal quarter of last year. For the first half of the fiscal year,
non-interest income increased 18% to $4.3 million, compared to $3.7 million in
the like period of last fiscal year. "The increase in non-interest income
during the first six months was largely due to the $828,000 pre-tax gain on
the sale/leaseback of the Camas branch and operations center during the fiscal
first quarter," said Sheaffer. The sale contributed approximately $0.11 per
diluted share to fiscal first quarter's earning.
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Riverview Bancorp, Inc.
October 19, 2004
Page 2
For the fiscal second quarter, non-interest expense was $4.6 million, even
with levels a year earlier. Fiscal year-to-date, non-interest expense was
$9.4 million, compared to $8.5 million in the first six months of fiscal 2004.
Net of intangible amortization, the efficiency ratio improved to 60.81% for
the quarter, compared to 61.44% in 2004's second fiscal quarter.
Total assets were at $525 million at September 30, 2004 compared to $533
million a year earlier. Deposits were at $412 million compared to $425
million at September 30, 2003. The reduction in deposits was maturities of
broker deposits acquired in the Today's Bank acquisition in July 2003.
Shareholders' equity increased 7% to $68 million and book value grew 5% to
$14.10 per share over the 12-month period.
"Our loan portfolio continues to grow steadily and has more of a commercial
loan mix," said Ron Wysaske, President and COO. "Commercial real estate loans
grew to 46% of the total loan portfolio at September 30, 2004, compared to 38%
at September 30, 2003." Net loans at September 30, 2004, increased 4% to $386
million, compared to $370 million at September 30, 2003. Single family
lending represents just 11% of Riverview's loan portfolio.
"We are maintaining our high credit standards and are not chasing poor quality
loans," Wysaske added. Credit quality remains high, as non-performing assets
were just 0.28% of total assets at September 30, 2004, an 11 basis point
improvement from 0.39% of total assets at March 31, 2004. The allowance for
loan losses was at $4.4 million or 1.13% of total net loans outstanding at
September 30, 2004.
Riverview's annualized return on average assets was 1.45% and 1.59% for the
second quarter and year-to-date periods respectively, compared to 1.48% for
both periods a year ago. Annualized return on average equity was 11.14% in
the second quarter and 12.21% for the six-month period, compared to 12.27% and
11.58% respectively, for the same periods a year ago.
Riverview Bancorp will host a conference call today, Tuesday, October 19th, at
8:00 a.m. PDT, to discuss second fiscal quarter results. The conference call
can be accessed live by telephone at 303-262-2140. To listen to the call
online go to www.actioncast.acttel.com and use event ID 24877. An archived
recording of the call can be accessed by dialing 303-590-3000 access code
11009825# until Tuesday, October 26, 2004 or via the internet at
www.actioncast.acttel.com and use event ID 24877.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. It is the
parent company of the 81 year-old Riverview Community Bank, as well as
Riverview Mortgage and Riverview Asset Management Corp. There are 13
Southwest Washington branches, including nine in Clark County the second
fastest growing county in the state and one lending center. 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 integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions.
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.
(tables follow)
Riverview Bancorp, Inc.
October 19, 2004
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2004, MARCH 31, 2004 AND SEPTEMBER 30, 2003
(In thousands, except share data) SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
(Unaudited) 2004 2004 2003
---------------------------------------------------------------------------
ASSETS
Cash (including interest-earning
accounts of $35,404, $32,334 and
$57,641) $ 49,644 $ 47,907 $ 84,597
Loans held for sale 444 407 1,606
Investment securities available
for sale, at fair value
(amortized cost of $30,712,
$32,751 and $31,290) 29,813 32,883 32,008
Mortgage-backed securities held
to maturity, at amortized cost
(fair value of $2,487, $2,591
and $2,863) 2,428 2,517 2,799
Mortgage-backed securities
available for sale, at fair value
(amortized cost of $13,445,
$10,417 and $8,375) 13,579 10,607 8,609
Loans receivable (net of allowance
for loan losses of $4,424,
$4,481 and $5,205) 386,063 381,127 369,668
Real estate owned - 742 1,077
Prepaid expenses and other assets 1,234 1,289 779
Accrued interest receivable 1,803 1,786 1,856
Federal Home Loan Bank stock,
at cost 6,119 6,034 5,927
Premises and equipment, net 8,401 9,735 10,392
Deferred income taxes, net 3,111 2,736 2,908
Mortgage servicing rights, net 564 624 718
Goodwill 9,214 9,214 9,204
Core deposit intangible, net 643 758 999
Bank owned life insurance 12,397 12,121
-------- -------- --------
TOTAL ASSETS $525,457 $520,487 $533,147
======== ======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
LIABILITIES:
Deposit accounts $411,702 $409,115 $425,498
Accrued expenses and other
liabilities 5,776 5,862 4,121
Advance payments by borrowers
for taxes and insurance 286 328 295
Federal Home Loan Bank advances 40,000 40,000 40,000
-------- -------- --------
Total liabilities 457,764 455,305 469,914
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01
par value; 250,000 authorized,
issued and outstanding, none - - -
Common stock, $.01 par value;
50,000,000 authorized
September 30, 2004 - 4,997,300
issued, 4,800,232 outstanding;
March 31, 2004 - 4,974,979 issued,
4,777,911 outstanding;
September 30, 2003 - 4,954,479
issued, 4,727,640 outstanding; 50 50 50
Additional paid-in capital 40,698 40,187 39,725
Retained earnings 28,945 26,330 24,531
Unearned shares issued to employee
stock ownership trust (1,495) (1,598) (1,701)
Accumulated other comprehensive
income (505) 213 628
-------- -------- --------
Total shareholders' equity 67,693 65,182 63,233
-------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $525,457 $520,487 $533,147
======== ======== ========
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Riverview Bancorp, Inc.
October 19, 2004
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE AND SIX MONTHS ENDED
SEPTEMBER 30, 2004 AND 2003 Three Months Ended Six Months Ended
(In thousands, except share data) September 30, September 30,
(Unaudited) 2004 2003 2004 2003
-----------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans
receivable $6,997 $6,727 $13,623 $12,396
Interest on investment securities 168 88 336 155
Interest on mortgage-backed
securities 164 154 324 335
Other interest and dividends 201 258 340 472
------ ------ ------- -------
Total interest income 7,530 7,227 14,623 13,358
------ ------ ------- -------
INTEREST EXPENSE:
Interest on deposits 1,260 1,325 2,303 2,334
Interest on borrowings 504 497 1,000 992
------ ------ ------- -------
Total interest expense 1,764 1,822 3,303 3,326
------ ------ ------- -------
Net interest income 5,766 5,405 11,320 10,032
Less provision for loan losses 50 - 190 70
------ ------ ------- -------
Net interest income after
provision for loan losses 5,716 5,405 11,130 9,962
------ ------ ------- -------
NON-INTEREST INCOME:
Fees and service charges 1,142 1,245 2,312 2,418
Asset management fees 257 214 529 437
Gain on sale of loans held for
sale 137 287 312 591
Gain on sale of other real
estate owned - 45 - 48
Loan servicing income 15 259 34 151
Bank owned life insurance 122 - 276 -
Gain on sale of premises and
equipment 1 - 829 2
Other 24 (1) 46 18
------ ------ ------- -------
Total non-interest income 1,698 2,049 4,338 3,665
------ ------ ------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,587 2,500 5,233 4,749
Occupancy and depreciation 739 769 1,512 1,355
Data processing 237 238 486 442
Amortization of core deposit
intangible 34 107 115 189
Advertising and marketing 222 244 473 513
FDIC insurance premium 15 13 30 25
State and local taxes 122 113 275 207
Telecommunications 70 73 134 121
Professional fees 129 105 252 194
Other 459 416 936 718
------ ------ ------- -------
Total non-interest expense 4,614 4,578 9,446 8,513
------ ------ ------- -------
INCOME BEFORE FEDERAL INCOME TAXES 2,800 2,876 6,022 5,114
PROVISION FOR FEDERAL INCOME TAXES 898 958 1,921 1,696
------ ------ ------- -------
NET INCOME $1,902 $1,918 $ 4,101 $ 3,418
====== ====== ======= =======
Earnings per common share:
Basic $ 0.40 $ 0.41 $ 0.85 $ 0.76
Diluted 0.39 0.41 0.84 0.75
Weighted average number of shares
outstanding:
Basic 4,812,154 4,653,314 4,801,528 4,513,117
Diluted 4,885,447 4,728,250 4,875,146 4,585,921
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Riverview Bancorp, Inc.
October 19, 2004
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the At or for the
Six Months Ended Year Ended
SEPTEMBER 30, 2004 MARCH 31, 2004
------------------ --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $464,861 $ 443,525
Average interest-bearing liabilities 378,081 361,984
Net average earning assets 86,780 81,541
Non-performing assets 1,478 2,043
Non-performing loans 1,478 1,301
Allowance for loan losses 4,424 4,481
Average interest-earning assets to
average interest-bearing liabilities 122.95% 122.53%
Allowance for loan losses to
non-performing loans 299.32% 344.43%
Allowance for loan losses to net
loans 1.13% 1.16%
Non-performing loans to total
net loans 0.38% 0.34%
Non-performing assets to total assets 0.28% 0.39%
Shareholders' equity to assets 12.88% 12.52%
Number of banking facilities 14 14
At or for the At or for the
Three Months Ended Six Months Ended
SEPTEMBER 30, 2004 MARCH 31, 2004
------------------ ------------------
SELECTED OPERATING DATA 2004 2003 2004 2003
----------------------- ------ ------ ------ ------
Efficiency ratio (4) 61.82% 61.42% 60.33% 62.15%
Efficiency ratio net of
intangible amortization 60.81% 61.44% 59.10% 60.59%
Coverage ratio net of
intangible amortization 125.90% 120.89% 121.32% 120.52%
Return on average assets (1) 1.45% 1.48% 1.59% 1.48%
Return on average equity (1) 11.14% 12.27% 12.21% 11.58%
Net interest margin 4.89% 4.60% 4.90% 4.76%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.40 $ 0.41 $ 0.85 $ 0.76
Diluted earnings per share (3) 0.39 0.41 0.84 0.75
Book value per share (2) 14.10 13.38 14.10 13.38
Tangible book value per
share (2) 11.93 11.07 11.93 11.07
Market price per share:
High for period 21.650 20.500 21.650 20.500
Low for the period 19.850 18.080 19.490 16.300
Close for period end 21.360 18.900 21.360 18.900
Cash dividends declared
per share 0.155 0.140 0.310 0.280
Average number of shares
outstanding:
Basic (2) 4,812,154 4,653,314 4,801,528 4,513,117
Diluted (3) 4,885,447 4,728,250 4,875,146 4,585,921
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
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