SOURCE: Riverview Financial Corporation

October 19, 2016 11:16 ET

Riverview Financial Corporation Reports Third Quarter 2016 Earnings

HARRISBURG, PA--(Marketwired - Oct 19, 2016) -  Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the three and nine months ended September 30, 2016. Riverview reported net income of $971 thousand, or $0.30 per basic and diluted weighted average share for the third quarter of 2016, compared to $622 thousand, or $0.23 per share, for the comparable period of 2015.

Core net income for the three months ended September 30, 2016 was $880 thousand, an increase of 20.5% from $730 thousand for the second quarter of 2016 and an increase of 1.6% from $866 thousand for the same period in 2015. Core net income, a non-GAAP financial measure reconciled to net income in the tabular material that follows, excludes net gains on sale of investment securities and acquisition related expenses, net of tax. Net gains on the sale of investment securities were $152 thousand for the third quarter of 2016 and $11 thousand for the same period last year. The results for the three months ended September 30, 2015, included pretax expenses related to the acquisition of Citizens National Bank of Meyersdale (the "merger") of approximately $380 thousand. Core net income per share for the three months ended September 30, 2016 was $0.27, compared to $0.23 for the second quarter of 2016 and $0.32 for the same period in 2015.

Net income for the nine months ended September 30, 2016, totaled $2.6 million or $0.80 per share compared to a net loss of $348 thousand or ($0.13) per share for the same period last year.

Core net income for the nine months ended September 30, 2016 was $2.4 million, up 61.8% from $1.5 million for the same period in 2015. Core net income per share for the nine months ended September 30, 2016 was $0.75, an increase from $0.55 for the same period in 2015. The results for the nine months ended September 30, 2016 included net gains on sale of investment securities of $319 thousand compared to a net loss of $20 thousand for the comparable nine months of 2015. Pretax acquisition and restructuring related expenses recognized for the nine months ended September 30, 2015, approximated $2.8 million.

"We are pleased with the progression of our quarterly earnings over the past three quarters after 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. "Despite the continuation of a very challenging interest rate and competitive environment, we have been able to maintain the level of our net interest margin which is the driving force behind the earnings improvement. In addition, we continue to focus our efforts on the successful build out of our Wealth Management Division in order to diversify revenue flow through increased noninterest income. This division will afford our customers the ability to invest in expanded offerings of investment products and services outside of those traditionally offered through our branch system," continued Fox. "With respect to nonfinancial objectives, 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

  • Net income per share increased to $0.30 in the third quarter of 2016 versus $0.23 for the same period in 2015.
  • For the third quarter of 2016, tax equivalent net interest margin improved to 3.99% compared to 3.78% for the same period in 2015.
  • Deposits grew $10.7 million or 3.2% annualized in 2016.
  • Nonperforming assets decreased to $8.6 million at the end of the third quarter of 2016 from $9.4 million at the end of the second quarter 2016 and $10.8 million at December 31, 2015.
  • Tangible book value per share improved $0.14 to $11.54 at the end of the third quarter of 2016 compared to $11.40 at June 30, 2016.

INCOME STATEMENT REVIEW

The tax-equivalent net interest margins for the three and nine months ended September 30, were 3.99% and 3.85% in 2016, compared to 3.78% and 3.76% in 2015, respectively.

Tax-equivalent net interest income for the nine months ended September 30, increased $2.5 million to $14.0 million in 2016 from $11.5 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 9 basis point increase in the tax-equivalent net interest margin. The tax-equivalent yield on the loan portfolio increased to 4.57% for the nine months ended September 30, 2016 compared to 4.48% for the comparable period in 2015. Loans, net averaged $402.5 million in 2016 and $349.8 million in 2015. For the nine months ended September 30, the tax-equivalent yield on total investments increased to 3.35% in 2016 from 3.33% in 2015. Average investments totaled $72.1 million in the nine months ended September 30, 2016 and $48.4 million for the comparable period in 2015. Average interest-bearing liabilities increased for the nine months ended September 30, 2016 to $416.4 million, compared to $346.1 million for the corresponding period last year. The cost of funds declined to 0.53% in the nine months ended September 30, 2016 from 0.57% for the same period of 2015. Tax-equivalent net interest income for the three months ended September 30, increased to $4.8 million in 2016 from $3.9 million in 2015.

The provision for loan losses totaled $284 thousand for the nine months ended September 30, 2016, compared to $450 thousand for the same period last year. The decrease in the provision for loan losses in 2016 was due to the application of our allowance for loan losses methodology, which 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 $29 thousand was recognized for the quarter ended September 30, 2016 as compared with none for the quarter ended September 30, 2015.

For the nine months ended September 30, noninterest income totaled $2.6 million in 2016, an increase from $1.7 million in 2015. Net gains on sale of investment securities were $484 thousand in 2016 compared to a net loss of $30 thousand in 2015. Increased service charges, fees and commissions, trust income, mortgage banking activities and life insurance investment income more than offset a decrease in wealth management income and losses on the sale of other real estate owned. For the three months ended September 30, noninterest income totaled $970 thousand in 2016 and $606 thousand in 2015.

Noninterest expense decreased $990 thousand or 7.3%, to $12.6 million for the nine months ended September 30, 2016, from $13.6 million for the nine months ended September 30, 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. For the third quarter, noninterest expense amounted to $4.3 million in 2016 and $3.6 million in 2015.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $527.1 million, $398.2 million and $459.0 million, respectively, at September 30, 2016. Loans, net decreased $11.7 million or 2.8% comparing the end of the third quarter 2016 to year-end 2015. Total deposits increased $10.7 million through nine months of 2016. Noninterest-bearing deposits increased $1.2 million or 2.3% annualized, while interest-bearing deposits increased $9.5 million or 3.3% annualized in 2016. Total investments were $72.4 million at September 30, 2016, a decrease of $3.5 million or 6.1% annualized from year-end 2015.

Stockholders' equity totaled $44.2 million or $13.67 per share at September 30, 2016, and $42.3 million or $13.20 per share at December 31, 2015. Total tangible stockholders' equity improved to $37.3 million or $11.54 per share at September 30, 2016, compared to $36.0 million or $11.24 per share at year-end 2015. Dividends declared for the nine months ended September 30, 2016 amounted to $0.41 per share representing a dividend payout ratio of 51.3%.

ASSET QUALITY REVIEW

Nonperforming assets were $8.6 million or 2.2% of loans, net and foreclosed assets at September 30, 2016, an improvement from $9.4 million or 2.4% at June 30, 2016, and $10.8 million or 2.6% at December 31, 2015. The allowance for loan losses equaled $3.6 million or 0.91% of loans, net at September 30, 2016 compared to $4.4 million or 1.07% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the nine months ended September 30, 2016, equaled $1.0 million or 0.33% of average loans, compared to $248 thousand or 0.10% of average loans for the nine months ended September 30, 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 Berks, Dauphin, Northumberland, Perry, Schuylkill, and Somerset Counties in Pennsylvania through 17 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 nine months ended September 30, 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.

[TABULAR MATERIAL FOLLOWS]

   
   
Summary Data  
Riverview Financial Corporation  
Five Quarter Trend  
(In thousands, except per share data)  
                             
    Sept 30     Jun 30     Mar 31     Dec 31   Sept 30  
    2016     2016     2016     2015   2015  
                                       
Key performance data:                                      
Per share data:                                      
Net income (loss)   $ 0.30     $ 0.27     $ 0.23     $ (0.15 ) $ 0.23  
Core net income (loss) (1)   $ 0.27     $ 0.23     $ 0.25     $ (0.02 ) $ 0.32  
Cash dividends declared   $ 0.14     $ 0.14     $ 0.14     $ 0.14   $ 0.14  
Book value   $ 13.67     $ 13.57     $ 13.40     $ 13.20   $ 13.54  
Tangible book value (1)   $ 11.54     $ 11.40     $ 11.47     $ 11.24   $ 12.26  
Market value:                                      
  High   $ 12.20     $ 12.10     $ 13.20     $ 13.40   $ 13.00  
  Low   $ 11.00     $ 11.00     $ 11.00     $ 12.50   $ 11.90  
  Closing   $ 11.40     $ 12.10     $ 11.10     $ 13.20   $ 12.25  
Market capitalization   $ 36,816     $ 38,973     $ 35,597     $ 42,313   $ 33,213  
Common shares outstanding     3,229,467       3,220,934       3,206,927       3,205,544     2,711,258  
                                       
Selected ratios:                                      
                                       
Return on average stockholders' equity     8.73 %     7.92 %     7.07 %     (4.36 %)   6.75 %
                                       
Core return on average stockholders' equity (1)     7.91 %     6.76 %     7.47 %     (0.70 %)   9.39 %
                                       
Return on average tangible stockholders' equity (1)     10.36 %     9.34 %     8.27 %     (5.02 %)   7.09 %
                                       
Core return on average tangible stockholders' equity (1)     9.39 %     7.97 %     8.74 %     (0.80 %)   9.86 %
                                       
Return on average assets     0.73 %     0.64 %     0.56 %     (0.35 %)   0.55 %
                                       
Core return on average assets (1)     0.66 %     0.55 %     0.59 %     (0.06 %)   0.77 %
                                       
Stockholders' equity to total assets     8.38 %     8.29 %     7.95 %     7.70 %   8.12 %
                                       
Efficiency ratio (2)     74.02 %     79.53 %     76.85 %     91.65 %   79.46 %
                                       
Nonperforming assets to loans, net, and foreclosed assets     2.15 %     2.35 %     2.44 %     2.63 %   3.40 %
                                       
Net charge-offs to average loans, net             0.27 %     0.74 %     0.73 %   0.17 %
                                       
Allowance for loan losses to loans, net     0.91 %     0.91 %     0.93 %     1.07 %   1.13 %
                                       
Earning assets yield (FTE) (3)     4.43 %     4.22 %     4.26 %     4.30 %   4.23 %
                                       
Cost of funds     0.51 %     0.54 %     0.53 %     0.50 %   0.53 %
                                       
Net interest spread (FTE) (3)     3.92 %     3.68 %     3.73 %     3.80 %   3.70 %
                                       
Net interest margin (FTE) (3)     3.99 %     3.75 %     3.80 %     3.88 %   3.78 %
                                       
(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)  
             
Nine Months Ended   Sept 30     Sept 30  
    2016     2015  
Interest income:                
Interest and fees on loans:                
  Taxable   $ 13,362     $ 11,396  
  Tax-exempt     261       210  
Interest and dividends on investment securities:                
  Taxable     1,375       690  
  Tax-exempt     280       335  
  Dividends     8       9  
Interest on interest-bearing deposits in other banks     41       27  
Interest on federal funds sold     2          
    Total interest income     15,329       12,667  
                 
Interest expense:                
Interest on deposits     1,375       1,294  
Interest on short-term borrowings     59       48  
Interest on long-term debt     214       133  
    Total interest expense     1,648       1,475  
    Net interest income     13,681       11,192  
Provision for loan losses     284       450  
    Net interest income after provision for loan losses     13,397       10,742  
                 
Noninterest income:                
Service charges, fees, commissions     933       740  
Commissions and fees on fiduciary activities     88       65  
Wealth management income     531       562  
Mortgage banking income     401       316  
Life insurance investment income     276       167  
Net loss on sale or adjustment of other real estate owned     (116 )     (92 )
Net gain (loss) on sale of investment securities available-for-sale     484       (30 )
    Total noninterest income     2,597       1,728  
                 
Noninterest expense:                
Salaries and employee benefits expense     6,611       7,636  
Net occupancy and equipment expense     1,617       2,135  
Amortization of intangible assets     247       196  
Other expenses     4,102       3,600  
    Total noninterest expense     12,577       13,567  
Income before income taxes     3,417       (1,097 )
Provision for income tax expense (benefit)     838       (749 )
    Net income (loss)   $ 2,579     $ (348 )
                 
Other comprehensive income (loss):                
Unrealized gain (loss) on investment securities available-for-sale   $ 940     $ (144 )
Reclassification adjustment for gain included in net income     (484 )     30  
Income tax expense (benefit) related to other comprehensive income     155       (39 )
    Other comprehensive income (loss), net of income taxes     301       (75 )
    Comprehensive income (loss)   $ 2,880     $ (423 )
                 
Per share data:                
Net income (loss):                
    Basic   $ 0.80     $ (0.13 )
    Diluted   $ 0.80     $ (0.13 )
Average common shares outstanding:                
    Basic     3,214,967       2,709,887  
    Diluted     3,237,553       2,718,742  
Cash dividends declared   $ 0.41     $ 0.41  
                 
                 
                 
Riverview Financial Corporation  
Consolidated Statements of Income  
(In thousands, except per share data)  
                           
Three months ended   Sept 30     Jun 30   Mar 31   Dec 31     Sept 30  
    2016     2016   2016   2015     2015  
                                     
Interest income:                                    
Interest and fees on loans:                                    
  Taxable   $ 4,598     $ 4,337   $ 4,427   $ 3,937     $ 3,821  
  Tax-exempt     87       88     86     83       78  
Interest and dividends on investment securities available-for-sale:                                    
  Taxable     539       435     401     269       225  
  Tax-exempt     53       91     136     141       133  
  Dividends     1       4     3     4       3  
Interest on interest-bearing deposits in other banks     13       13     15     10       9  
Interest on federal funds sold     -       1     1                
    Total interest income     5,291       4,969     5,069     4,444       4,269  
                                     
Interest expense:                                    
Interest on deposits     447       461     467     385       419  
Interest on short-term borrowings     3       13     43     33       15  
Interest on long-term debt     77       82     55     36       28  
    Total interest expense     527       556     565     454       462  
    Net interest income     4,764       4,413     4,504     3,990       3,807  
Provision for loan losses     29       156     99     1,022          
    Net interest income after provision for loan losses     4,735       4,257     4,405     2,968       3,807  
                                     
Noninterest income:                                    
Service charges, fees, commissions     315       320     298     281       265  
Commissions and fees on fiduciary activities     34       35     19     20       22  
Wealth management income     194       179     158     186       179  
Mortgage banking income     210       109     82     87       112  
Life insurance investment income     118       76     82     50       42  
Net gain (loss) on sale or adjustment of other real estate owned     (53 )     (69 )   6     (168 )     (25 )
Net gain (loss) on sale of investment securities available-for-sale     152       334     (2 )   13       11  
    Total noninterest income     970       984     643     469       606  
                                     
Noninterest expense:                                    
Salaries and employee benefits expense     2,334       2,126     2,151     2,364       1,765  
Net occupancy and equipment expense     538       526     553     565       794  
Amortization of intangible assets     95       76     76     63       65  
Other expenses     1,313       1,448     1,341     1,252       1,025  
    Total noninterest expense     4,280       4,176     4,121     4,244       3,649  
Income before income taxes     1,425       1,065     927     (807 )     764  
Income tax expense (benefit)     454       210     174     (401 )     142  
    Net income (loss)   $ 971     $ 855   $ 753   $ (406 )   $ 622  
                                     
Other comprehensive income (loss):                                    
Unrealized gain (loss) on investment securities available-for-sale   $ (148 )   $ 581   $ 507   $ 103     $ 232  
Reclassification adjustment for (gain) loss included in net income     (152 )     (334 )   2     (13 )     (11 )
Change in pension liability                         (344 )        
Income tax expense (benefit) related to other comprehensive income (loss)     (102 )     84     173     (86 )     75  
    Other comprehensive income (loss), net of income taxes     (198 )     163     336     (168 )     146  
    Comprehensive income (loss)   $ 773     $ 1,018   $ 1,089   $ (574 )   $ 768  
                                     
Per share data:                                    
Net income (loss):                                    
    Basic   $ 0.30     $ 0.27   $ 0.23   $ (0.15 )   $ 0.23  
    Diluted   $ 0.30     $ 0.27   $ 0.23   $ (0.15 )   $ 0.23  
Average common shares outstanding:                                    
    Basic     3,224,053       3,214,247     3,206,501     2,712,547       2,710,803  
    Diluted     3,244,688       3,245,867     3,222,005     2,720,349       2,719,328  
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 Sept 30     June 30     Mar 31     Dec 31     Sept 30  
  2016     2016     2016     2015     2015  
                                       
Net interest income:                                      
Interest income                                      
Loans, net:                                      
  Taxable $ 4,598     $ 4,337     $ 4,427     $ 3,937     $ 3,821  
  Tax-exempt   132       133       130       126       118  
    Total loans, net   4,730       4,470       4,557       4,063       3,939  
Investments:                                      
  Taxable   540       439       404       273       228  
  Tax-exempt   80       138       206       214       202  
    Total investments   620       577       610       487       430  
  Interest on interest-bearing balances in other banks   13       13       15       10       9  
  Federal funds sold           1       1                  
    Total interest income   5,363       5,061       5,183       4,560       4,378  
Interest expense:                                      
  Deposits   447       461       467       385       419  
  Short-term borrowings   3       13       43       33       15  
  Long-term debt   77       82       55       36       28  
    Total interest expense   527       556       565       454       462  
    Net interest income $ 4,836     $ 4,505     $ 4,618     $ 4,106     $ 3,916  
                                       
Loans, net:                                      
  Taxable   4.71 %     4.49 %     4.52 %     4.54 %     4.44 %
  Tax-exempt   4.49 %     4.31 %     4.12 %     4.43 %     4.71 %
    Total loans, net   4.70 %     4.49 %     4.51 %     4.53 %     4.45 %
Investments:                                      
  Taxable   3.30 %     2.97 %     3.02 %     3.06 %     2.85 %
  Tax-exempt   4.90 %     4.54 %     4.31 %     4.43 %     4.41 %
    Total investments   3.44 %     3.24 %     3.36 %     3.54 %     3.41 %
  Interest-bearing balances with banks   0.55 %     0.54 %     0.67 %     0.39 %     0.36 %
  Federal funds sold           0.43 %     0.50 %                
    Total earning assets   4.43 %     4.22 %     4.26 %     4.30 %     4.23 %
Interest expense:                                      
  Deposits   0.45 %     0.47 %     0.48 %     0.48 %     0.52 %
  Short-term borrowings   0.56 %     0.55 %     0.58 %     0.39 %     0.35 %
  Long-term debt   2.71 %     2.90 %     2.34 %     1.88 %     1.75 %
    Total interest-bearing liabilities   0.51 %     0.54 %     0.53 %     0.50 %     0.53 %
    Net interest spread   3.92 %     3.68 %     3.73 %     3.80 %     3.70 %
    Net interest margin   3.99 %     3.75 %     3.80 %     3.88 %     3.78 %
                                           
                                           
                                           
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
                     
  Sept 30   Jun 30   Mar 31   Dec 31     Sept 30
At period end 2016   2016   2016   2015     2015
                               
Assets:                              
Cash and due from banks $ 7,066   $ 6,193   $ 13,145   $ 14,679     $ 6,514
Interest-bearing balances in other banks   9,051     8,606     12,194     8,009       8,739
Investment securities available-for-sale   72,371     74,253     73,317     75,850       53,853
Loans held for sale   820     318     594     1,094        
Loans, net   398,193     398,493     401,482     409,845       352,308
Less: allowance for loan losses   3,637     3,609     3,717     4,365       3,994
Net loans   394,556     394,884     397,765     405,480       348,314
Premises and equipment, net   12,287     12,236     12,349     12,373       11,696
Accrued interest receivable   1,701     1,586     1,610     1,594       1,368
Goodwill   5,408     5,408     4,757     4,757       2,297
Other intangible assets, net   1,497     1,593     1,425     1,501       1,175
Other assets   22,321     22,236     23,759     24,112       18,009
    Total assets $ 527,078   $ 527,313   $ 540,915   $ 549,449     $ 451,965
                               
                               
Liabilities:                              
Deposits:                              
  Noninterest-bearing $ 71,329   $ 70,230   $ 69,935   $ 70,106     $ 54,020
  Interest-bearing   387,664     391,217     385,569     378,236       324,715
    Total deposits   458,993     461,447     455,504     448,342       378,735
Short-term borrowings   6,000     4,069     25,000     42,575       23,333
Long-term debt   11,257     11,335     11,400     9,350       7,350
Accrued interest payable   220     221     267     236       112
Other liabilities   6,447     6,520     5,766     6,643       5,715
    Total liabilities   482,917     483,592     497,937     507,146       415,245
                               
                               
                               
Stockholders' equity:                              
Common stock   22,077     22,077     22,077     22,077       22,077
Capital surplus   7,089     6,979     6,812     6,784       254
Retained earnings   14,802     14,274     13,861     13,550       14,329
Accumulated other comprehensive income (loss)   193     391     228     (108 )     60
    Total stockholders' equity   44,161     43,721     42,978     42,303       36,720
    Total liabilities and stockholders' equity $ 527,078   $ 527,313   $ 540,915   $ 549,449     $ 451,965
                               
                               
                               
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
                   
  Sept 30   Jun 30   Mar 31   Dec 31   Sept 30
Average quarterly balances 2016   2016   2016   2015   2015
                             
Assets:                            
Loans, net:                            
  Taxable $ 388,752   $ 388,062   $ 393,778   $ 344,201   $ 341,147
  Tax-exempt   11,675     12,446     12,714     11,272     9,958
    Total loans, net   400,427     400,508     406,492     355,473     351,105
Investments:                            
  Taxable   65,126     59,354     53,747     35,365     31,786
  Tax-exempt   6,524     12,203     19,244     19,196     18,132
    Total investments   71,650     71,557     72,991     54,561     49,918
Interest-bearing balances with banks   9,371     9,673     8,998     10,219     9,834
Federal funds sold   199     926     808     15     34
    Total earning assets   481,647     482,664     489,289     420,268     410,891
Other assets   49,010     50,667     55,785     38,225     37,361
    Total assets $ 530,657   $ 533,331   $ 545,074   $ 458,493   $ 448,252
                             
Liabilities and stockholders' equity:                            
Deposits:                            
  Interest-bearing $ 395,272   $ 392,343   $ 388,317   $ 317,374   $ 322,405
  Noninterest-bearing   70,956     70,342     68,274     57,101     59,795
    Total deposits   466,228     462,685     456,591     374,475     382,200
Short-term borrowings   2,114     9,451     29,593     33,517     17,058
Long-term debt   11,284     11,360     9,440     7,589     6,359
Other liabilities   6,799     6,425     6,615     5,970     6,077
    Total liabilities   486,425     489,921     502,239     421,551     411,694
Stockholders' equity   44,232     43,410     42,835     36,942     36,558
    Total liabilities and stockholders' equity $ 530,657   $ 533,331   $ 545,074   $ 458,493   $ 448,252
                                 
                                 
                                 
Riverview Financial Corporation
Asset Quality Data
(In thousands)
                   
  Sept 30   Jun 30   Mar 31   Dec 31   Sept 30
  2016   2016   2016   2015   2015
At quarter end:                            
Nonperforming assets:                            
  Nonaccrual loans $ 1,463   $ 1,575   $ 1,949   $ 3,182   $ 3,744
  Accruing restructured loans   6,017     6,600     6,626     6,666     6,176
  Accruing loans past due 90 days or more   133     349     199     89     1,020
  Foreclosed assets   988     842     1,043     885     1,057
Total nonperforming assets $ 8,601   $ 9,366   $ 9,817   $ 10,822   $ 11,997
                             
Three months ended:                            
Allowance for loan losses:                            
Beginning balance $ 3,609   $ 3,717   $ 4,365   $ 3,994   $ 4,145
Charge-offs   34     303     758     652     172
Recoveries   34     39     11     1     21
Provision for loan losses   29     156     99     1,022      
Ending balance $ 3,638   $ 3,609   $ 3,717   $ 4,365   $ 3,994
                             
                             
                             
Riverview Financial Corporation  
Reconciliation of Non-GAAP Financial Measures  
(In thousands, except per share data)  
                           
  Sept 30     Jun 30     Mar 30     Dec 31   Sept 30  
  2016     2016     2016     2015   2015  
Three months ended:                                    
                                     
Core net income (loss) per share:                                    
Net income (loss) GAAP $ 971     $ 855     $ 753     $ (406 ) $ 622  
Adjustments:                                    
Less: Gain (loss) on sale of investment securities, net of tax   100       220       (1 )     9     7  
Add: Acquisition related expenses, net of tax   9       95       42       350     251  
Net income (loss) Core $ 880     $ 730     $ 796     $ (65 ) $ 866  
                                     
Average common shares outstanding   3,224,053       3,214,247       3,206,501       2,712,547     2,710,803  
                                     
Core net income (loss) per share $ 0.27     $ 0.23     $ 0.25     $ (0.02 ) $ 0.32  
                                     
Tangible book value:                                    
Total stockholders' equity $ 44,161     $ 43,721     $ 42,978     $ 42,303   $ 36,720  
Less: Goodwill   5,408       5,408       4,757       4,757     2,297  
Less: Other intangible assets, net   1,497       1,593       1,425       1,501     1,175  
  Total tangible stockholders' equity $ 37,256     $ 36,720     $ 36,796     $ 36,045   $ 33,248  
                                     
Common shares outstanding   3,229,467       3,220,934       3,206,927       3,205,544     2,711,258  
                                     
Tangible book value per share $ 11.54     $ 11.40     $ 11.47     $ 11.24   $ 12.26  
                                     
Core return on average stockholders' equity:                                    
Net income (loss) GAAP $ 971     $ 855     $ 753     $ (406 ) $ 622  
Adjustments:                                    
Less: Gain (loss) on sale of investment securities, net of tax   100       220       (1 )     9     7  
Add: Acquisition related expenses, net of tax   9       95       42       350     251  
Net income (loss) Core $ 880     $ 730     $ 795     $ (65 ) $ 866  
                                     
Average stockholders' equity $ 44,232     $ 43,410     $ 42,835     $ 36,942   $ 36,558  
                                     
Core return on average stockholders' equity   7.91 %     6.76 %     7.47 %     (0.70 %)   9.39 %
                                     
Return on average tangible equity:                                    
Net income (loss) GAAP $ 971     $ 855     $ 753     $ (406 ) $ 622  
                                     
Average stockholders' equity $ 44,232     $ 43,410     $ 42,835     $ 36,942   $ 36,558  
Less: average intangibles   6,953       6,592       6,220       4,865     1,736  
Average tangible stockholders' equity $ 37,279     $ 36,819     $ 36,615     $ 32,077   $ 34,822  
                                     
Return on average tangible stockholders' equity   10.36 %     9.34 %     8.27 %     (5.02 %)   7.09 %
                                     
Core return on average tangible stockholders' equity:                                    
Net income (loss) GAAP $ 971     $ 855     $ 753     $ (406 ) $ 622  
Adjustments:                                    
Less: Gain (loss) on sale of investment securities, net of tax   100       220       (1 )     9     7  
Add: Acquisition related expenses, net of tax   9       95       42       350     251  
Net income (loss) Core $ 880     $ 730     $ 796     $ (65 ) $ 866  
                                     
Average stockholders' equity $ 44,232     $ 43,410     $ 42,835     $ 36,942   $ 36,558  
Less: average intangibles   6,953       6,592       6,220       4,865     1,736  
Average tangible stockholders' equity $ 37,279     $ 36,819     $ 36,615     $ 32,077   $ 34,822  
                                     
Core return on average tangible stockholders' equity   9.39 %     7.97 %     8.74 %     (0.80 %)   9.86 %
                                     
Core return on average assets:                                    
Net income (loss) GAAP $ 971     $ 855     $ 753     $ (406 ) $ 622  
Adjustments:                                    
Less: Gain (loss) on sale of investment securities, net of tax   100       220       (1 )     9     7  
Add: Acquisition related expenses, net of tax   9       95       42       350     251  
Net income (loss) Core $ 880     $ 730     $ 796     $ (65 ) $ 866  
                                     
Average assets $ 530,657     $ 533,331     $ 545,074     $ 458,493   $ 448,252  
Core return on average assets   0.66 %     0.55 %     0.59 %     (0.06 %)   0.77 %
                                     
                                     
                                     
Riverview Financial Corporation  
Reconciliation of Non-GAAP Financial Measures  
(In thousands, except per share data)  
           
    Sept 30   Sept 30  
    2016   2015  
Nine months ended:              
               
Core net income per share:              
Net income (loss) GAAP   $ 2,579   $ (348 )
Adjustments:              
Less: Gain (loss) on sale of investment securities, net of tax     319     (20 )
Add: Acquisition related expenses, net of tax     147     1,815  
Net income Core   $ 2,406   $ 1,487  
               
Average common shares outstanding     3,214,967     2,709,887  
               
Core net income per share   $ 0.75   $ 0.55