SOURCE: Riverview Financial Corporation

January 26, 2017 09:46 ET

Riverview Financial Corporation Reports 2016 Earnings

HARRISBURG, PA--(Marketwired - Jan 26, 2017) - Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the year ended December 31, 2016. Riverview reported net income of $3.1 million or $0.95 per basic and diluted weighted average share for 2016, compared to a net loss of $754 thousand, or ($0.28) per basic and diluted weighted average share, for the comparable period of 2015. The 2015 results included per-tax merger related expenses of approximately $3.3 million from the acquisition of Citizens National Bank of Meyersdale ("Citizens") on December 31, 2015. Core net income for the year ended December 31, was $2.9 million, or $0.90 per share, in 2016 and $1.4 million, or $0.52 per share, in 2015. Core net income, a non-GAAP financial measure reconciled to net income in the tabular material that follows, excludes net gains (losses) on the sale of investment securities and acquisition related expenses, net of tax. Net gains on the sale of investment securities were $484 thousand in 2016. Net losses on the sale of investment securities totaled $17 thousand in 2015.

For the quarter ended December 31, net income was $488 thousand, or $0.15 per share, in 2016 compared to a net loss of $406 thousand, or ($0.15) per share, in 2015. Core net income for the fourth quarter was $488 thousand in 2016 compared to a core net loss of $65 thousand in 2015. The results for the three months ended December 31, 2015, included pretax merger expenses related to the acquisition of Citizens of approximately $530 thousand and net gains on the sale of investment securities of $13 thousand. Core net income per share for the fourth quarter was $0.15 in 2016, compared to a core net loss of ($0.02) in 2015.

"We are pleased to announce that core earnings in 2016 more than doubled those of 2015 adjusted for acquisition costs associated with the completion of the merger of Citizens National Bank of Meyersdale with and into Riverview Bank in the fourth quarter of 2015," stated Kirk D. Fox, Chief Executive Officer. "On January 20, 2017, we successfully completed the closing of a $17 million capital offering. The primary objective of this issuance is to enhance shareholder value through elevating the level of asset generation by taking advantage of organic growth opportunities in new and existing markets. Most recently, we expanded our presence in Berks County through opening a full-service community banking office in Temple, Pennsylvania on January 11, 2017. This new office has a dedicated team of lenders and is expected to have a material impact on elevating loan growth and wealth management opportunities in the near term. We will continue to seek out expansion opportunities by taking advantage of disruptions caused by consolidation in the market," continued Fox. "In addition, we plan to introduce our mobile banking product in the first quarter of 2017, which will significantly improve customer access to their banking relationship with Riverview Bank and is expected to grow our core deposit base," concluded Fox. 

HIGHLIGHTS

  • For the fourth quarter of 2016, loans, net grew $11.2 million or 11.1% annualized.
  • Nonperforming assets, excluding accruing restructured loans, decreased to $2.4 million at the end of the fourth quarter of 2016 from $2.6 million at the end of the third quarter 2016 and $4.2 million at December 31, 2015.
  • Core net income increased $1.5 million or 103.6% comparing the years ended December 31, 2016 and 2015.
  • Wealth management income increased 51.5% in the fourth quarter of 2016 versus the prior quarter.

INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the twelve months ended December 31, increased $3.0 million to $18.6 million in 2016 from $15.6 million in 2015. The increase in tax equivalent net interest income was primarily attributable to additional interest earning assets and interest bearing liabilities acquired as part of the merger as well as a 4 basis point increase in the tax-equivalent net interest margin. The tax-equivalent net interest margin for the year ended December 31, 2016, improved to 3.83% from 3.79% for the year ended December 31, 2015. The tax-equivalent yield on the loan portfolio increased to 4.53% in 2016 compared to 4.49% in 2015. Loans, net averaged $403.0 million in 2016 and $351.6 million in 2015. For the twelve months ended December 31, the tax-equivalent yield on total investments decreased to 3.36% in 2016 from 3.39% in 2015. Average investments totaled $72.3 million in 2016 and $49.9 million in 2015. Average interest-bearing liabilities increased to $414.9 million in 2016 from $349.2 million in 2015. The cost of funds declined to 0.52% in 2016 from 0.55% in 2015. Tax-equivalent net interest income for the three months ended December 31, increased to $4.6 million in 2016 from $4.1 million in 2015. The tax-equivalent net interest margin for the fourth quarter of 2016 was 3.76% compared to 3.88% for the same period last year.

The provision for loan losses totaled $453 thousand for the year ended December 31, 2016, compared to $1.5 million in 2015. The decrease in the provision for loan losses in 2016 was primarily influenced by a lower level of nonperforming assets as a percentage of loans and foreclosed assets compared to the prior year period. A provision of $169 thousand was recognized for the quarter ended December 31, 2016 as compared with $1.0 million for the comparable period last year. The larger provision in the fourth quarter of 2015 was a result of writing down certain loans to two commercial customers. 

For the year ended December 31, noninterest income totaled $3.4 million in 2016, an increase of $1.2 million from $2.2 million in 2015. Net gains on sale of investment securities were $484 thousand in 2016 compared to a net loss of $17 thousand in 2015. In addition, increases in service charges, fees and commissions, trust income, wealth management income, mortgage banking activities and life insurance investment income along with a decrease in losses on the sale of other real estate owned also helped to improve noninterest income. For the three months ended December 31, noninterest income totaled $844 thousand in 2016 and $469 thousand in 2015.

Noninterest expense decreased $688 thousand or 3.9%, to $17.1 million in 2016, from $17.8 million in 2015. The reduction in salaries and employee benefit expense was a result of the recognition of a severance payout for the departure of the former chief executive officer in 2015. The implementation of certain consolidation and efficiency initiatives related to branch closures in 2015 was the primary cause of declines in net occupancy and equipment expenses in 2016. The increase in other expenses comparing 2016 and 2015 was a result of additional advertising and charitable contribution expenditures. For the fourth quarter, noninterest expense amounted to $4.5 million in 2016 and $4.2 million in 2015.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $543.0 million, $409.3 million, and $452.6 million, respectively, at December 31, 2016. Loans, net decreased $502 thousand comparing the end of the 2016 to year end 2015. Total investments were $73.1 million at December 31, 2016, a decrease of $2.7 million from year-end 2015. Total deposits increased $4.2 million in 2016. Noninterest-bearing deposits increased $3.8 million, while interest-bearing deposits increased $392 thousand in 2016. For the fourth quarter of 2016, loans net grew $11.2 million or 11.1% annualized as a result of increases in commercial real estate and tax-exempt loans. Investments grew $742 thousand in the fourth quarter of 2016 as purchases of US Treasury securities more than offset changes in the fair market value of investment securities available-for-sale and investment repayments. Total deposits decreased $6.4 million in the quarter ended December 31, 2016, as a decrease in interest-bearing deposits of $9.0 million was partially offset by an increase in noninterest-bearing deposits of $2.6 million.

Stockholders' equity totaled $41.9 million or $12.95 per share at December 31, 2016, and $42.3 million or $13.20 per share at December 31, 2015. Stockholders' equity decreased $2.2 million in the fourth quarter of 2016 due primarily to the change in accumulated other comprehensive income from decreases in the value of investment securities available-for-sale as a result of an increase in general market rates. Total tangible stockholders' equity decreased to $35.1 million or $10.84 per share at December 31, 2016, compared to $37.3 million or $11.54 per share at September 30, 2016, and $36.0 million or $11.24 per share at year-end 2015. Dividends declared for the three and twelve months ended December 31, 2016 amounted to $0.14 per share and $0.55 per share, respectively. The dividend payout ratio was of 57.9% in 2016.

ASSET QUALITY REVIEW
Nonperforming assets were $8.2 million or 2.0% of loans, net and foreclosed assets at December 31, 2016, an improvement from $8.6 million or 2.2% at September 30, 2016, and $10.8 million or 2.6% at December 31, 2015. Adjusting for accruing restructured loans, nonperforming assets were $2.4 million or 0.6% of loans, net and foreclosed assets at December 31, 2016, $2.6 million or 0.6% at September 30, 2016, and $4.2 million or 1.0% at December 31, 2015. The allowance for loan losses equaled $3.7 million or 0.91% of loans, net at December 30, 2016, compared to $3.6 million or 0.91% at September 30, 2016, and $4.4 million or 1.07% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the twelve months ended December 31, 2016, equaled $1.1 million or 0.27% of average loans, compared to $899 thousand or 0.26% of average loans for the twelve months ended December 31, 2015. For the fourth quarter, net loans charged-off totaled $74 thousand or 0.07% of average loans in 2016 and $651 thousand or 0.73% of average loans in 2015.

Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, and Riverview Financial Wealth Management. An independent community bank, Riverview Bank serves its Central Pennsylvania market area of Berks, Cumberland, Dauphin, Northumberland, Perry, Schuylkill Counties, as well as its Southwestern Pennsylvania market area of Bedford, Cambria, Somerset and Westmoreland Counties through sixteen community banking offices and three limited purpose offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Riverview Financial Wealth Management provides investment advisory services to the general public through offices in Lebanon, Northumberland and Schuylkill Counties. The Company's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, "Riverview") that may be considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview' operations, pricing, products and services and other factors that may be described in Riverview' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

In addition to these risks, acquisitions and business combinations, present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre acquisition operations of an acquired or combined business may cause reputational harm to Riverview following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and core net income ratios. The reported results for the three and twelve months ended December 31, 2016 and 2015, contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale and acquisition related expenses. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview's results of operation. Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview's industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions. These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.

 
Summary Data
Riverview Financial Corporation
Five Quarter Trend
(In thousands, except per share data)
                     
    Dec 31   Sept 30   Jun 30   Mar 31   Dec 31
    2016   2016   2016   2016   2015
                     
Key performance data:                    
Per share data:                    
Net income (loss)   $0.15   $0.30   $ 0.27   $ 0.23   ($ 0.15)
Core net income (loss) (1)   $0.15   $0.27   $ 0.23   $ 0.25   ($ 0.02)
Cash dividends declared   $0.14   $0.14   $ 0.14   $ 0.14   $ 0.14
Book value   $12.95   $13.67   $ 13.57   $ 13.40   $ 13.20
Tangible book value (1)   $10.84   $11.54   $ 11.40   $ 11.47   $ 11.24
Market value:                    
  High   $11.78   $12.20   $ 12.10   $ 13.20   $ 13.40
  Low   $11.05   $11.00   $ 11.00   $ 11.00   $ 12.50
  Closing   $11.60   $11.40   $ 12.10   $ 11.10   $ 13.20
Market capitalization   $37,559   $36,816   $ 38,973   $ 35,597   $ 42,313
Common shares outstanding   3,237,859   3,229,467   3,220,934   3,206,927   3,205,544
                     
Selected ratios:                    
                     
Return on average stockholders' equity   4.50%   8.73%   7.92%   7.07%   (4.36%)
                     
Core return on average stockholders' equity (1)   4.50%   7.86%   6.85%   7.45%   (0.70%)
                     
Return on average tangible stockholders' equity (1)   5.34%   10.36%   9.34%   8.25%   (4.76%)
                     
Core return on average tangible stockholders' equity (1)   5.34%   9.33%   8.07%   8.72%   (0.76%)
                     
Return on average assets   0.36%   0.73%   0.64%   0.56%   (0.35%)
                     
Core return on average assets (1)   0.36%   0.66%   0.56%   0.59%   (0.06%)
                     
Stockholders' equity to total assets   7.72%   8.38%   8.29%   7.95%   7.70%
                     
Efficiency ratio (2)   81.73%   74.02%   79.53%   76.84%   91.65%
                     
Nonperforming assets to loans, net, and foreclosed assets   1.99%   2.15%   2.35%   2.44%   2.63%
                     
Net charge-offs to average loans, net   0.07%       0.27%   0.74%   0.73%
                     
Allowance for loan losses to loans, net   0.91%   0.91%   0.91%   0.93%   1.07%
                     
Earning assets yield (FTE) (3)   4.19%   4.43%   4.22%   4.26%   4.30%
                     
Cost of funds   0.51%   0.51%   0.54%   0.53%   0.50%
                     
Net interest spread (FTE) (3)   3.68%   3.92%   3.68%   3.73%   3.80%
                     
Net interest margin (FTE) (3)   3.76%   3.99%   3.75%   3.80%   3.88%
                     
                     

(1) See Reconciliation of Non-GAAP financial measures.
(2) Total noninterest expense less amortization of intangible assets divided by tax-equivalent net interest income and noninterest income less net gain (loss) on sale of investment securities available-for-sale.
(3) Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate of 34%.



Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
         
Twelve Months Ended   Dec 31   Dec 31
    2016   2015
Interest income:        
Interest and fees on loans:        
  Taxable   $17,565   $ 15,333
  Tax-exempt   451   293
Interest and dividends on investment securities:        
  Taxable   1,931   959
  Tax-exempt   326   476
  Dividends   8   13
Interest on interest-bearing deposits in other banks   53   37
Interest on federal funds sold   2    
    Total interest income   20,336   17,111
         
Interest expense:        
Interest on deposits   1,793   1,679
Interest on short-term borrowings   84   81
Interest on long-term debt   295   169
    Total interest expense   2,172   1,929
    Net interest income   18,164   15,182
Provision for loan losses   453   1,472
    Net interest income after provision for loan losses   17,711   13,710
         
Noninterest income:        
Service charges, fees and commissions   1,278   1,021
Commissions and fees on fiduciary activities   118   85
Wealth management income   825   748
Mortgage banking income   597   403
Life insurance investment income   345   217
Net loss on sale of other real estate owned   (206)   (260)
Net gain (loss) on sale of investment securities available-for-sale   484   (17)
    Total noninterest income   3,441   2,197
         
Noninterest expense:        
Salaries and employee benefits expense   9,261   10,000
Net occupancy and equipment expense   2,165   2,700
Amortization of intangible assets   340   259
Other expenses   5,357   4,852
    Total noninterest expense   17,123   17,811
Income (loss) before income taxes   4,029   (1,904)
Provision for income tax expense (benefit)   962   (1,150)
    Net income (loss)   $3,067   ($ 754)
         
Other comprehensive income (loss):        
Unrealized (gain) loss on investment securities available-for-sale   ($2,728)   ($ 41)
Reclassification adjustment for (gain) loss included in net income   (484)   17
Change in pension liability   47   (344)
Income tax expense (benefit) related to other comprehensive income   (1,076)   (125)
    Other comprehensive income (loss), net of income taxes   (2,089)   (243)
    Comprehensive income (loss)   $978   ($ 997)
         
Per share data:        
Net income (loss):        
    Basic   $0.95   ($0.28)
    Diluted   $0.95   ($0.28)
Average common shares outstanding:        
    Basic   3,219,339   2,710,558
    Diluted   3,241,869   2,719,068
Cash dividends declared   $0.55   $ 0.55
         
         
Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
                     
Three months ended   Dec 31   Sept 30   Jun 30   Mar 31   Dec 31
    2016   2016   2016   2016   2015
                     
Interest income:                    
Interest and fees on loans:                    
  Taxable   $4,203   $4,598   $ 4,337   $ 4,427   $ 3,937
  Tax-exempt   190   87   88   86   83
Interest and dividends on investment securities available-for-sale:                    
  Taxable   556   539   435   401   269
  Tax-exempt   46   53   91   136   141
  Dividends       1   4   3   4
Interest on interest-bearing deposits in other banks   12   13   13   15   10
Interest on federal funds sold           1   1    
    Total interest income   5,007   5,291   4,969   5,069   4,444
                     
Interest expense:                    
Interest on deposits   418   447   461   467   385
Interest on short-term borrowings   25   3   13   43   33
Interest on long-term debt   81   77   82   55   36
    Total interest expense   524   527   556   565   454
    Net interest income   4,483   4,764   4,413   4,504   3,990
Provision for loan losses   169   29   156   99   1,022
    Net interest income after provision for loan losses   4,314   4,735   4,257   4,405   2,968
                     
Noninterest income:                    
Service charges, fees and commissions   345   315   320   298   281
Commissions and fees on fiduciary activities   30   34   35   19   20
Wealth management income   294   194   179   158   186
Mortgage banking income   196   210   109   82   87
Life insurance investment income   69   118   76   82   50
Net gain (loss) on sale of other real estate owned   (90)   (53)   (69)   6   (168)
Net gain (loss) on sale of investment securities available-for-sale       152   334   (2)   13
    Total noninterest income   844   970   984   643   469
                     
Noninterest expense:                    
Salaries and employee benefits expense   2,650   2,334   2,126   2,151   2,364
Net occupancy and equipment expense   548   538   526   553   565
Amortization of intangible assets   93   95   76   76   63
Other expenses   1,255   1,313   1,448   1,341   1,252
    Total noninterest expense   4,546   4,280   4,176   4,121   4,244
Income (loss) before income taxes   612   1,425   1,065   927   (807)
Income tax expense (benefit)   124   454   210   174   (401)
    Net income (loss)   $488   $971   $ 855   $ 753   ($ 406)
                     
Other comprehensive income (loss):                    
Unrealized gain (loss) on investment securities available-for-sale   ($3,668)   ($ 148)   $ 581   $ 507   $ 103
Reclassification adjustment for (gain) loss included in net income       (152)   (334)   2   (13)
Change in pension liability   47               (344)
Income tax expense (benefit) related to other comprehensive income (loss)   (1,231)   (102)   84   173   (86)
    Other comprehensive income (loss), net of income taxes   (2,390)   (198)   163   336   (168)
    Comprehensive income (loss)   ($1,902)   $ 773   $ 1,018   $ 1,089   ($ 574)
                     
Per share data:                    
Net income (loss):                    
    Basic   $0.15   $0.30   $0.27   $0.23   ($0.15)
    Diluted   $0.15   $0.30   $ 0.27   $ 0.23   ($ 0.15)
Average common shares outstanding:                    
    Basic   3,232,359   3,224,053   3,214,248   3,206,501   2,712,547
    Diluted   3,254,719   3,244,689   3,245,868   3,222,005   2,720,349
Cash dividends declared   $0.14   $0.14   $ 0.14   $ 0.14   $ 0.14
                     
                     
Riverview Financial Corporation
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)
                     
Three months ended   Dec 31   Sept 30   June 30   Mar 31   Dec 31
    2016   2016   2016   2016   2015
                     
Net interest income:                    
Interest income                    
Loans, net:                    
  Taxable   $4,203   $4,598   $4,337   $4,427   $3,937
  Tax-exempt   288   132   133   130   126
    Total loans, net   4,491   4,730   4,470   4,557   4,063
Investments:                    
  Taxable   556   540   439   404   273
  Tax-exempt   70   80   138   207   214
    Total investments   626   620   577   611   487
  Interest on interest-bearing balances in other banks   12   13   13   15   10
  Federal funds sold           1   1    
    Total interest income   5,129   5,363   5,061   5,184   4,560
Interest expense:                    
  Deposits   418   447   461   467   385
  Short-term borrowings   25   3   13   43   33
  Long-term debt   81   77   82   55   36
    Total interest expense   524   527   556   565   454
    Net interest income   $4,605   $4,836   $4,505   $4,619   $4,106
                     
Loans, net:                    
  Taxable   4.26%   4.71%   4.49%   4.52%   4.54%
  Tax-exempt   9.15%   4.49%   4.31%   4.12%   4.43%
    Total loans, net   4.42%   4.70%   4.49%   4.51%   4.53%
Investments:                    
  Taxable   3.28%   3.30%   2.97%   3.02%   3.06%
  Tax-exempt   4.82%   4.90%   4.54%   4.32%   4.42%
    Total investments   3.40%   3.44%   3.24%   3.37%   3.54%
  Interest-bearing balances with banks   0.49%   0.55%   0.54%   0.67%   0.39%
  Federal funds sold           0.43%   0.50%    
    Total earning assets   4.19%   4.43%   4.22%   4.26%   4.30%
Interest expense:                    
  Deposits   0.43%   0.45%   0.47%   0.48%   0.48%
  Short-term borrowings   0.65%   0.56%   0.55%   0.58%   0.39%
  Long-term debt   2.88%   2.71%   2.90%   2.34%   1.88%
    Total interest-bearing liabilities   0.51%   0.51%   0.54%   0.53%   0.50%
    Net interest spread   3.68%   3.92%   3.68%   3.73%   3.80%
    Net interest margin   3.76%   3.99%   3.75%   3.80%   3.88%
                         
                         
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
                     
    Dec 31   Sept 30   Jun 30   Mar 31   Dec 31
At period end   2016   2016   2016   2016   2015
                     
Assets:                    
Cash and due from banks   $7,783   $7,066   $ 6,193   $ 13,145   $ 14,679
Interest-bearing balances in other banks   11,337   9,051   8,606   12,194   8,009
Investment securities available-for-sale   73,113   72,371   74,253   73,317   75,850
Loans held for sale   652   820   318   594   1,094
Loans, net   409,343   398,193   398,493   401,482   409,845
Less: allowance for loan losses   3,732   3,637   3,609   3,717   4,365
Net loans   405,611   394,556   394,884   397,765   405,480
Premises and equipment, net   12,201   12,287   12,236   12,349   12,373
Accrued interest receivable   1,726   1,701   1,586   1,610   1,594
Goodwill   5,408   5,408   5,408   4,757   4,757
Other intangible assets, net   1,405   1,497   1,593   1,425   1,501
Other assets   23,812   22,321   22,236   23,759   24,112
    Total assets   $543,048   $527,078   $ 527,313   $ 540,915   $ 549,449
                     
                     
Liabilities:                    
Deposits:                    
  Noninterest-bearing   $73,932   $71,329   $ 70,230   $ 69,935   $ 70,106
  Interest-bearing   378,628   387,664   391,217   385,569   378,236
    Total deposits   452,560   458,993   461,447   455,504   448,342
Short-term borrowings   31,500   6,000   4,069   25,000   42,575
Long-term debt   11,154   11,257   11,335   11,400   9,350
Accrued interest payable   192   220   221   267   236
Other liabilities   5,722   6,447   6,520   5,766   6,643
    Total liabilities   501,128   482,917   483,592   497,937   507,146
                     
                     
                     
Stockholders' equity:                    
Common stock   22,077   22,077   22,077   22,077   22,077
Capital surplus   7,195   7,089   6,979   6,812   6,784
Retained earnings   14,845   14,802   14,274   13,861   13,550
Accumulated other comprehensive income (loss)   (2,197)   193   391   228   (108)
    Total stockholders' equity   41,920   44,161   43,721   42,978   42,303
    Total liabilities and stockholders' equity   $543,048   $527,078   $ 527,313   $ 540,915   $ 549,449
                     
                     
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
                     
    Dec 31   Sept 30   Jun 30   Mar 31   Dec 31
Average quarterly balances   2016   2016   2016   2016   2015
                     
Assets:                    
Loans, net:                    
  Taxable   $392,085   $388,752   $ 388,062   $ 393,778   $ 344,201
  Tax-exempt   12,510   11,675   12,446   12,714   11,272
    Total loans, net   404,595   400,427   400,508   406,492   355,473
Investments:                    
  Taxable   67,423   65,126   59,354   53,747   35,365
  Tax-exempt   5,750   6,524   12,203   19,244   19,196
    Total investments   73,173   71,650   71,557   72,991   54,561
Interest-bearing balances with banks   9,716   9,371   9,673   8,998   10,219
Federal funds sold   31   199   926   808   15
    Total earning assets   487,515   481,647   482,664   489,289   420,268
Other assets   45,300   49,010   50,667   55,785   38,225
    Total assets   $532,815   $530,657   $ 533,331   $ 545,074   $ 458,493
                     
Liabilities and stockholders' equity:                    
Deposits:                    
  Interest-bearing   $384,278   $395,272   $ 392,343   $ 388,317   $ 317,374
  Noninterest-bearing   72,227   70,956   70,342   68,274   57,101
    Total deposits   456,505   466,228   462,685   456,591   374,475
Short-term borrowings   15,213   2,114   9,451   29,593   33,517
Long-term debt   11,203   11,284   11,360   9,440   7,589
Other liabilities   6,709   6,799   6,425   6,615   5,970
    Total liabilities   489,630   486,425   489,921   502,239   421,551
Stockholders' equity   43,185   44,232   43,410   42,835   36,942
    Total liabilities and stockholders' equity   $532,815   $530,657   $ 533,331   $ 545,074   $ 458,493
 
 
Riverview Financial Corporation
Asset Quality Data
(In thousands)
                     
    Dec 31   Sept 30   Jun 30   Mar 31   Dec 31
    2016   2016   2016   2016   2015
At quarter end:                    
Nonperforming assets:                    
  Nonaccrual loans   $1,386   $1,463   $ 1,575   $ 1,949   $ 3,182
  Accruing restructured loans   5,805   6,017   6,600   6,626   6,666
  Accruing loans past due 90 days or more   359   133   349   199   89
  Foreclosed assets   625   988   842   1,043   885
Total nonperforming assets   $8,175   $8,601   $9,366   $9,817   $10,822
                     
Three months ended:                    
Allowance for loan losses:                    
Beginning balance   $ 3,637   $ 3,609   $ 3,717   $ 4,365   $ 3,994
Charge-offs   78   35   303   758   652
Recoveries   4   34   39   11   1
Provision for loan losses   169   29   156   99   1,022
Ending balance   $3,732   $3,637   $ 3,609   $ 3,717   $ 4,365
                     
                     
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
                     
    Dec 31   Sept 30   Jun 30   Mar 30   Dec 31
    2016   2016   2016   2016   2015
Three months ended:                    
                     
Core net income (loss) per share:                    
Net income (loss) GAAP   $488   $971   $855   $753   ($406)
Adjustments:                    
Less: Gain (loss) on sale of investment securities, net of tax       100   220   (1)   9
Add: Acquisition related expenses, net of tax       3   104   42   350
Net income (loss) Core   $488   $874   $739   $796   ($65)
                     
Average common shares outstanding   3,232,359   3,224,053   3,214,248   3,206,501   2,712,547
                     
Core net income (loss) per share   $0.15   $0.27   $0.23   $0.25   ($0.02)
                     
Tangible book value:                    
Total stockholders' equity   $41,920   $44,161   $43,721   $42,978   $42,303
Less: Goodwill   5,408   5,408   5,408   4,757   4,757
Less: Other intangible assets, net   1,405   1,497   1,593   1,425   1,501
    Total tangible stockholders' equity   $35,107   $37,256   $36,720   $36,796   $36,045
                     
Common shares outstanding   3,237,859   3,229,467   3,220,934   3,206,927   3,205,544
                     
Tangible book value per share   $10.84   $11.54   $11.40   $11.47   $11.24
                     
Core return on average stockholders' equity:                    
Net income (loss) GAAP   $488   $971   $855   $753   ($406)
Adjustments:                    
Less: Gain (loss) on sale of investment securities, net of tax       100   220   (1)   9
Add: Acquisition related expenses, net of tax       3   104   42   350
Net income (loss) Core   $488   $874   $739   $796   ($65)
                     
Average stockholders' equity   $43,185   $44,232   $43,410   $42,835   $36,942
                     
Core return on average stockholders' equity   4.50%   7.86%   6.85%   7.45%   (0.70%)
                     
Return on average tangible equity:                    
Net income (loss) GAAP   $488   $971   $855   $753   ($406)
                     
Average stockholders' equity   $43,185   $44,232   $43,410   $42,835   $36,942
Less: average intangibles   6,859   6,953   6,591   6,220   3,129
Average tangible stockholders' equity   $36,326   $37,279   $36,819   $36,615   $33,813
                     
Return on average tangible stockholders' equity   5.34%   10.36%   9.34%   8.25%   (4.76%)
                     
Core return on average tangible stockholders' equity:                    
Net income (loss) GAAP   $488   $971   $855   $753   ($406)
Adjustments:                    
Less: Gain (loss) on sale of investment securities, net of tax       100   220   (1)   9
Add: Acquisition related expenses, net of tax       3   104   42   350
Net income (loss) Core   $488   $874   $739   $796   ($65)
                     
Average stockholders' equity   $43,185   $44,232   $43,410   $42,835   $36,942
Less: average intangibles   6,859   6,953   6,591   6,220   3,129
Average tangible stockholders' equity   $36,326   $37,279   $36,819   $36,615   $33,813
                     
Core return on average tangible stockholders' equity   5.34%   9.33%   8.07%   8.72%   (0.76%)
                     
Core return on average assets:                    
Net income (loss) GAAP   $488   $971   $855   $753   ($406)
Adjustments:                    
Less: Gain (loss) on sale of investment securities, net of tax       100   220   (1)   9
Add: Acquisition related expenses, net of tax       3   104   42   350
Net income (loss) Core   $488   $874   $7391   $796   ($65)
                     
Average assets   $532,815   $530,657   $533,331   $545,074   $458,493
Core return on average assets   0.36%   0.66%   0.56%   0.59%   (0.06%)

Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
         
    Dec 31   Dec 31
    2016   2015
Twelve months ended:        
         
Core net income per share:        
Net income (loss) GAAP   $3,067   ($ 754)
Adjustments:        
Less: Gain (loss) on sale of investment securities, net of tax   319   (11)
Add: Acquisition related expenses, net of tax   148   2,165
Net income Core   $2,896   $1,422
         
Average common shares outstanding   3,219,339   2,711,558
         
Core net income per share   $0.90   $ 0.52