Riverview Bancorp Inc.
Annual Report 2022

Plain-text annual report

Fiscal year 2022 was a good year for Riverview: • Record profits of $21.8 million, or $0.98 per diluted share • Our loan portfolio increased by $137.5 million (excluding PPP loans) • Total deposits increased by $187.8 million to $1.53 billion • Total cash dividend increased to $0.215 per share • Tangible book value per share increased $0.32 to $5.86 • Strong total capital ratio and Tier 1 leverage ratio of 16.38% and 9.19%, respectively • Riverview Trust Assets Under Management totaled $1.3 billion Riverview Bancorp, Inc. $202,332 In donations to local organizations whose missions include: Animal Welfare Children Services Civic Services Economic Development Education Environmental Family Services Financial Literacy Food Drives Homeownership Parks and Recreation Senior Services Veteran Services 77 Organizations we dontated to 33 Board of Director positions held by staff members American Legion Post #116 Boy Scout Troop 562 Camp Hope Children's Center Community Bankers of Washington Community Foundation Of Southwest Washington East Vancouver Business Association Humane Society for Southwest Washington Immigrant & Refugee Community Organization (IRCO) J. Scott Campbell Foundation Klickitat County Veterans Advisory Board Klineline Kids Fishing Nonprofit Leadership Clark County Lifeline Connections Metropolitan Performing Arts Academy Portland Police Bureau Slavic Advisory Council Rotary Club of Battle Ground Rotary Club of Vancouver Rotary Club of White Salmon-Bingen Skamania County Fair Board The Historic Trust Tualatin Chamber of Commerce Tualatin Together Ukrainian American Cultural Association of Oregon and SW Washington Washington State University Foundation (WSU) Washougal School District West Columbia Gorge Humane Society West Klickitat Community Housing Development XChange Recovery Corporate Office 900 Washington Street, Suite 900 Vancouver, Washington 98660 360-514-5000 | riverviewbank.com Stock Listing NASDAQ Global Select Market Symbol RVSB Transfer Agent Broadridge Corporate Issuer Solutions, Inc. 855-802-4983 | Shareholder@Broadridge.com Financial Highlights FOR THE YEAR ENDED MARCH 31 2022 2021 2020 (Dollars in thousands, except share data) Interest income and dividend income Interest expense Net interest income Provision for (recapture of) loan losses Net interest income after provision for (recapture of) loan losses Non-interest income Non-interest expense Income before income taxes Provision for income taxes Net income Average # of common shares outstanding 49,825 2,200 47,625 (4,625) 52,250 12,744 36,718 28,276 6,456 21,820 22,213,029 48,344 3,427 44,917 6,300 38,617 11,090 36,254 13,453 2,981 10,472 22,296,195 50,495 4,764 45,731 1,250 44,481 12,360 36,263 20,578 4,830 15,748 22,707,624 PER COMMON SHARE Net income (per diluted share) Cash dividends Book value Closing price FISCAL YEAR END BALANCES Assets Loans, net Deposits Shareholders’ equity Total # of common shares outstanding Full-time equivalent employees Number of banking facilities FINANCIAL RATIOS Return on average assets Return on average common equity Net interest margin Efficiency ratio Non-performing assets to total assets Allowance for loan losses to total loans Equity to assets at period end 2022 2021 2020 0.98 0.215 7.11 7.55 2022 1,740,096 975,885 1,533,878 157,249 22,127,396 225 17 0.47 0.200 6.78 6.93 2021 1,549,158 924,057 1,346,060 151,594 22,351,235 232 17 0.69 0.190 6.60 5.01 2020 1,180,808 898,885 990,448 148,843 22,544,285 252 18 2022 2021 2020 1.31% 13.62 3.03 60.82 1.27 1.47 9.04 0.74% 6.91 3.41 64.73 0.04 2.03 9.79 1.35% 10.96 4.26 62.42 0.12 1.38 12.61 Greetings from the Pacific Northwest: Riverview Community Bank turns 100 years old in 2023. This year, we are getting ready for the next 100 years. There will be celebratory moments in the century anniversary. Turning 100 reminds us that so much has changed over the past 100 years and the next century will require even more advances in banking. While the past two years of the pandemic have brought challenges to Riverview, our employees have responded by being in service to their fellow staff members, clients, communities and shareholders. They have been the glue that held the business together. Riverview has adapted and grown during this time with record earnings, deposit growth of more than 50%, strong credit quality and solid capital levels. Riverview is stronger than pre-pandemic and well positioned for further growth and financial success. While the pandemic brought many challenges, one of the bright spots was Riverview’s participation in the PPP Program. Our team supported local small businesses and nonprofits in our communities, showing the true meaning of being a community bank and a community partner. By responding quickly and being flexible, our staff pulled together in a time of need, and helped to stabilize local businesses and save over 13,000 jobs. The Riverview team booked over 1,200 loans, for a total dollar value of more than $167,000,000. The average originated loan was approximately $139,000 with 78 percent of loans under $150,000, further demonstrating our commitment to our small business partners. Our team also has worked hard to assist these businesses with the forgiveness process through the SBA, and we are happy to report that 99% of these borrower’s loans have been forgiven. While providing you financial information, it’s important to also talk about some of the operational items: Staffing – This remains one of our largest challenges. Like most every business, recruitment and retention are focus area for our organization. Riverview is known for friendly, helpful team members. It’s our secret weapon. Keeping trained, competent staff will continue to be a focus for our future. Technology – At this time, we have more than 20 information technology projects in various stages of design, development and implementation. Some of these projects will help us to streamline our back-end operations and others will improve the products and services we offer to our clients. We understand that technology and banking are synonymous and signifies what clients have come to expect from their financial institution. Freshening up our brand – We are working on updating our look and feel. The current brand has served us well. We have deep roots in Southwest Washington, the Columbia Gorge and Portland. We care about the same things as our customers ... keep it simple and say what you mean. We don’t want clients to just bank with us, we want to support dreams and aspirations. When they are ready for a new home, we will be there. When they save for college, we will be there. And for their retirement needs. We will be there in all of life’s stages. In February 2022, Riverview opened a new retail branch in Ridgefield, Washington, the fastest growing municipality in Washington state. Ridgefield was an original community known for an abundance of water and agriculture. Today, Ridgefield is growing houses and businesses. Our Stevenson, Washington, branch was completely remodeled to meet the growing needs of this unique Columbia Gorge community. Along with these two new and nearly new branches, all branches are receiving smaller updates to better serve existing clients and help attract new clients. Thank you for being part of the Riverview family and for selecting Riverview as your investment partner. Warm regards, For complete financial details and other information, please see the 2022 Riverview Bancorp, Inc. 10-K. Jerry Nies Kevin Lycklama Chairman of the Board of Directors President and Chief Executive Officer $$$$$$$$$$$$ 

Continue reading text version or see original annual report in PDF format above