AP NEWS

Riverview Bancorp Earns $4.4 Million in Third Fiscal Quarter 2019 Highlighted by Strong Loan Growth and Expanding Net Interest Margin

January 24, 2019

VANCOUVER, Wash., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported net income increased to $4.4 million, or $0.19 per diluted share, in its third fiscal quarter ended December 31, 2018, compared to $4.2 million, or $0.19 per diluted share, in the preceding quarter and $1.5 million, or $0.07 per diluted share, in the third fiscal quarter a year ago.

“We reported strong third quarter operating results, delivering steady loan growth and solid revenue while expanding our net interest margin,” said Kevin Lycklama, president and chief executive officer. “Overall, these factors contributed to a return on average assets of 1.53% and a return on average equity of 13.90% for the quarter. The economic fundamentals in our market are strong and we remain optimistic about the upcoming fiscal year.”

Third Quarter Highlights (at or for the period ended December 31, 2018)

-- Net income grew to $4.4 million, or $0.19 per diluted share. -- Net interest margin (NIM) expanded by six basis points to 4.39% compared to the preceding quarter. -- Return on average assets increased to 1.53% compared to 1.46% in the preceding quarter. -- Return on average equity improved to 13.90% compared to 13.68% in the preceding quarter. -- Total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018. -- Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter. -- Non-performing assets improved to 0.14% of total assets. -- Tangible book value per share (non-GAAP) was $4.43. -- Total risk-based capital ratio was 16.35% and Tier 1 leverage ratio was 11.22%. -- Increased its quarterly cash dividend to $0.04 per share, generating a current dividend yield of 2.13% based on the January 18, 2019 share price.

Income Statement

Third quarter net interest income was $11.7 million, a modest increase compared to $11.6 million in the preceding quarter, and an $884,000 increase compared to $10.8 million in the third fiscal quarter a year ago. The increase in net interest income was due to higher rates on earning assets and an increase in outstanding loans. In the first nine months of fiscal 2019, net interest income increased 8.8% to $34.8 million, compared to $32.0 million in the first nine months of fiscal 2018.

“Our robust loan growth, coupled with our low cost of deposits, contributed to the net interest margin expansion during the quarter,” said David Lam, executive vice president and chief financial officer. “However, increased competition for loans and deposits and a flattening yield curve remains a challenge.”

Riverview’s third fiscal quarter net interest margin increased six basis points to 4.39% compared to 4.33% in the second fiscal quarter and increased 33 basis points when compared to 4.06% in the third fiscal quarter a year ago. In the preceding quarter, the collection of $98,000 of non-accrual interest from a prior charged-off loan added four basis points to the NIM. The accretion on purchased loans totaled $172,000 during the current quarter and $152,000 during the linked quarter resulting in a seven basis point increase in the NIM for both periods. In the first nine months of fiscal 2019, Riverview’s NIM increased 31 basis points to 4.37%, compared to the same period a year earlier.

The weighted average rate on loans originated during the quarter ended December 31, 2018, increased to 6.04% compared to 5.63% for the quarter ended September 30, 2018, and 4.75% for the quarter ended December 31, 2017.

Non-interest income was $2.8 million in the third fiscal quarter compared to $3.0 million in the preceding quarter and $2.9 million in the same quarter a year ago. Year to date, non-interest income was $8.9 million compared to $8.3 million in the same period in the prior year. During the preceding quarter, other non-interest income included a net gain of approximately $70,000 on the sale of deposit accounts associated with the closing of the Company’s Longview, WA branch. Additionally, prepayment fees decreased $122,000 to $54,000 for the third fiscal quarter compared to $176,000 in the preceding quarter.

Asset management fees were $935,000 in the third fiscal quarter of 2019 compared to $943,000 in the preceding quarter and $911,000 in the third fiscal quarter a year ago. Riverview Trust Company’s assets under management decreased to $570.4 million at December 31, 2018, compared to $614.0 million three months earlier but increased compared to $490.1 million one year earlier. The current quarter decrease was primarily due to the recent stock market volatility.

The efficiency ratio improved to 60.9% for the third fiscal quarter compared to 61.0% in the preceding quarter and 62.5% in the third fiscal quarter a year ago. Non-interest expense decreased to $8.8 million during the third fiscal quarter of 2019 compared to $8.9 million in the preceding quarter, primarily related to a $355,000 gain on sale of the building related to the Longview branch closing. Offsetting this decrease was an increase in salaries and employee benefits and professional fees as the Company continues to invest in employees and technology infrastructure. In the first nine months of fiscal 2019, non-interest expense was $26.7 million compared to $26.5 million in the same period a year earlier.

Riverview’s effective tax rate for the first nine months of fiscal year 2019 was 22.4% compared to 47.6% for the same prior year period. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017.

Balance Sheet Review

Riverview’s total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018, an annualized growth rate of 8.8%. The increase was primarily concentrated in commercial construction loans and single purpose commercial real estate facilities. Total loan balances also continue to be impacted by elevated pay downs on existing loans.

The loan pipeline totaled $33.6 million at December 31, 2018 compared to $91.9 million at the end of the prior quarter. Undisbursed construction loans totaled $79.0 million at December 31, 2018 compared to $82.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

“Loan demand remains robust in our market area, and our lending teams are doing an outstanding job of capitalizing on opportunities,” said Lycklama. “While we did experience a decrease in our loan pipeline, this was mostly expected due to seasonal conditions as well as the strong loan originations during the quarter.”

Total deposits decreased to $943.6 million at December 31, 2018 compared to $982.3 million three months earlier and $972.2 million a year ago. Money market, certificates of deposit and other interest-rate sensitive accounts continue to experience the greatest pressure due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $128.1 million at December 31, 2018, compared to $122.4 million three months earlier and $116.8 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.43 at December 31, 2018, compared to $4.17 at September 30, 2018 and $3.93 at December 31, 2017. A quarterly cash dividend of $0.04 per share was paid on January 22, 2019.

Credit Quality

As a result of improving asset quality and a low level of net charge-offs, Riverview recorded no provision for loan losses during the third fiscal quarter of 2019. This compares to a $250,000 recapture for loan losses in the preceding quarter and no provision for loan losses for the third fiscal quarter a year ago.

Non-performing loans improved to $1.6 million, or 0.19% of total loans, at December 31, 2018, compared to $2.3 million, or 0.27% of total loans, three months earlier and $2.7 million, or 0.33% of total loans at December 31, 2017. Riverview had no real estate owned balances at December 31, 2018 and September 30, 2018. Riverview had $298,000 in real estate owned balances as of December 31, 2017.

Net loan charge offs were $11,000 during the third fiscal quarter of 2019 compared to net loan charge offs of $86,000 during the second fiscal quarter of 2019 and net loan recoveries of $250,000 during the third fiscal quarter a year ago.

Classified assets totaled $6.0 million at December 31, 2018, compared to $6.2 million at September 30, 2018, and $6.9 million at December 31, 2017. The classified asset to total capital ratio was 4.4% at December 31, 2018, compared to 4.7% three months earlier and 5.7% a year earlier.

The allowance for loan losses totaled $11.5 million, which was unchanged compared to the preceding quarter end. The allowance for loan losses represented 1.32% of total loans at December 31, 2018, compared to 1.35% of total loans at September 30, 2018. Included in the carrying value of loans are net discounts on the MBank purchased loans which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $1.7 million at December 31, 2018, compared to $1.9 million at the end of the prior quarter.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.35% and a Tier 1 leverage ratio of 11.22% at December 31, 2018. In addition, at that date the Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 8.91%.

Non-GAAP Financial Measures

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

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

(Dollars in thousands) December September December March 31, 31, 2018 30, 2018 31, 2017 2018 ----------- ----------- ----------- ----------- Shareholders’ equity $ 128,094 $ 122,410 $ 116,803 $ 116,901 Goodwill 27,076 27,076 27,076 27,076 Core deposit intangible, net 966 1,011 1,161 1,103 - --------- - --------- - --------- - --------- Tangible shareholders’ equity $ 100,052 $ 94,323 $ 88,566 $ 88,722 - --------- - --------- - --------- - --------- Total assets $ 1,151,225 $ 1,148,447 $ 1,128,342 $ 1,151,535 Goodwill 27,076 27,076 27,076 27,076 Core deposit intangible, net 966 1,011 1,161 1,103 - --------- - --------- - --------- - --------- Tangible assets $ 1,123,183 $ 1,120,360 $ 1,100,105 $ 1,123,356 - --------- - --------- - --------- - ---------

About Riverview

Riverview Bancorp, Inc. ( www.riverviewbank.com ) is headquartered in Vancouver, Washington – just north of Portland, Oregon on the I-5 corridor. With assets of $1.15 billion at December 31, 2018, it is the parent company of the 95-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 17 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 5 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

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

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

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2019 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets (In thousands, except share data) (Unaudited) December 31, September 30, December 31, March 31, 2018 2018 2017 2018 --------------------------------------------------- ------------- ------------- ------------- ------------- ASSETS Cash (including interest-earning accounts of $ 23,394 $ 27,080 $ 23,105 $ 44,767 $4,641, $12,537 $3,739 and $30,052) Certificate of deposits held for investment 747 3,984 6,963 5,967 Loans held for sale - - 351 210 Investment securities: Available for sale, at estimated fair value 182,280 190,792 224,931 213,221 Held to maturity, at amortized cost 36 38 44 42 Loans receivable (net of allowance for loan losses of $11,502, $11,513 $10,867, and $10,766) 857,134 838,329 786,460 800,610 Real estate owned - - 298 298 Prepaid expenses and other assets 4,021 5,104 4,843 3,870 Accrued interest receivable 3,789 3,671 3,464 3,477 Federal Home Loan Bank stock, at cost 2,735 1,353 1,223 1,353 Premises and equipment, net 14,940 15,403 15,680 15,783 Deferred income taxes, net 4,680 5,352 3,988 4,813 Mortgage servicing rights, net 325 344 399 388 Goodwill 27,076 27,076 27,076 27,076 Core deposit intangible, net 966 1,011 1,161 1,103 Bank owned life insurance 29,102 28,910 28,356 28,557 - --------- - - --------- - - --------- - - --------- - TOTAL ASSETS $ 1,151,225 $ 1,148,447 $ 1,128,342 $ 1,151,535 - --------- - - --------- - - --------- - - --------- - LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES: Deposits $ 943,578 $ 982,272 $ 972,214 $ 995,691 Accrued expenses and other liabilities 15,855 13,767 9,117 9,391 Advance payments by borrowers for taxes and 192 1,050 260 637 insurance Federal Home Loan Bank advances 34,543 - 1,050 - Junior subordinated debentures 26,553 26,530 26,461 26,484 Capital lease obligations 2,410 2,418 2,437 2,431 - --------- - - --------- - - --------- - - --------- - Total liabilities 1,023,131 1,026,037 1,011,539 1,034,634 SHAREHOLDERS’ EQUITY: Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none - - - - Common stock, $.01 par value; 50,000,000 authorized, December 31, 2018 - 22,598,712 issued and outstanding; September 30, 2018 - 22,598,712 issued and 226 226 226 226 outstanding; December 31, 2017 - 22,551,912 issued and outstanding; March 31, 2018 – 22,570,179 issued and outstanding; Additional paid-in capital 65,056 65,044 64,703 64,871 Retained earnings 67,126 63,642 53,878 56,552 Accumulated other comprehensive loss (4,314 ) (6,502 ) (2,004 ) (4,748 ) - --------- - - --------- - - --------- - - --------- - Total shareholders’ equity 128,094 122,410 116,803 116,901 - --------- - - --------- - - --------- - - --------- - TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 1,151,225 $ 1,148,447 $ 1,128,342 $ 1,151,535 - --------- - - --------- - - --------- - - --------- -

RIVERVIEW BANCORP, INC. AND SUBSIDIARY Consolidated Statements of Income Three Months Ended Nine Months Ended (In thousands, except share data) Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (Unaudited) 2018 2018 2017 2018 2017 -------------------------------------------- ------------ ------------ ------------ ------------ ------------ INTEREST INCOME: Interest and fees on loans receivable $ 11,129 $ 10,943 $ 9,978 $ 32,849 $ 29,761 Interest on investment securities - taxable 1,110 1,116 1,201 3,424 3,413 Interest on investment securities - 37 36 31 110 59 nontaxable Other interest and dividends 60 118 168 271 483 - ---------- Total interest and dividend income 12,336 12,213 11,378 36,654 33,716 INTEREST EXPENSE: Interest on deposits 240 259 298 759 933 Interest on borrowings 416 352 284 1,126 829 Total interest expense 656 611 582 1,885 1,762 - ---------- - ---------- - ---------- - ---------- - ---------- Net interest income 11,680 11,602 10,796 34,769 31,954 Provision for loan losses - 250 - 50 - - ---------- - ---------- - ---------- - ---------- - ---------- Net interest income after provision for loan 11,680 11,352 10,796 34,719 31,954 losses NON-INTEREST INCOME: Fees and service charges 1,511 1,690 1,451 4,956 4,348 Asset management fees 935 943 911 2,804 2,582 Net gain on sale of loans held for sale 82 44 140 278 522 Bank owned life insurance 192 174 207 545 618 Other, net 62 165 181 267 271 - ---------- Total non-interest income, net 2,782 3,016 2,890 8,850 8,341 NON-INTEREST EXPENSE: Salaries and employee benefits 5,794 5,283 5,383 16,655 16,056 Occupancy and depreciation 1,306 1,351 1,347 4,016 4,105 Data processing 621 622 534 1,874 1,730 Amortization of core deposit intangible 45 46 58 137 174 Advertising and marketing 151 266 137 609 627 FDIC insurance premium 85 85 108 246 389 State and local taxes 125 182 96 475 427 Telecommunications 85 88 102 266 309 Professional fees 449 387 250 1,120 926 Other 142 605 543 1,339 1,748 - ---------- Total non-interest expense 8,803 8,915 8,558 26,737 26,491 - ---------- - ---------- - ---------- - ---------- - ---------- INCOME BEFORE INCOME TAXES 5,659 5,453 5,128 16,832 13,804 PROVISION FOR INCOME TAXES 1,271 1,224 3,608 3,773 6,571 - ---------- - ---------- - ---------- - ---------- - ---------- NET INCOME $ 4,388 $ 4,229 $ 1,520 $ 13,059 $ 7,233 - ---------- - ---------- - ---------- - ---------- - ---------- Earnings per common share: Basic $ 0.19 $ 0.19 $ 0.07 $ 0.58 $ 0.32 Diluted $ 0.19 $ 0.19 $ 0.07 $ 0.58 $ 0.32 Weighted average number of common shares outstanding: Basic 22,598,712 22,579,839 22,537,092 22,582,956 22,520,352 Diluted 22,663,919 22,658,737 22,622,129 22,658,153 22,608,603

(Dollars in thousands) At or for the three months ended At or for the nine months ended Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017 Dec. 31, Dec. 31, 2018 2017 ------------- -------------- ------------- ----------- ----------- AVERAGE BALANCES Average interest–earning assets $ 1,057,199 $ 1,064,386 $ 1,055,600 $ 1,056,750 $ 1,045,283 Average interest-bearing liabilities 707,618 717,085 744,431 716,890 746,262 Net average earning assets 349,581 347,301 311,169 339,860 299,021 Average loans 854,368 839,497 785,264 835,697 784,926 Average deposits 967,246 986,948 988,558 975,295 980,766 Average equity 125,252 122,630 118,831 122,298 116,399 Average tangible equity (non-GAAP) 97,182 94,515 90,562 94,182 88,074 ASSET QUALITY Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017 ------------- -------------- ------------- Non-performing loans $ 1,612 $ 2,283 $ 2,656 Non-performing loans to total loans 0.19% 0.27% 0.33% Real estate/repossessed assets owned $ - $ - $ 298 Non-performing assets $ 1,612 $ 2,283 $ 2,954 Non-performing assets to total assets 0.14% 0.20% 0.26% Net loan charge-offs (recoveries) in $ 11 $ 86 $ (250) the quarter Net charge-offs (recoveries) in the 0.01% 0.04% (0.13)% quarter/average net loans Allowance for loan losses $ 11,502 $ 11,513 $ 10,867 Average interest-earning assets to average interest-bearing liabilities 149.40% 148.43% 141.80% Allowance for loan losses to non-performing loans 713.52% 504.29% 409.15% Allowance for loan losses to total 1.32% 1.35% 1.36% loans Shareholders’ equity to assets 11.13% 10.66% 10.35% CAPITAL RATIOS Total capital (to risk weighted 16.35% 15.82% 15.07% assets) Tier 1 capital (to risk weighted 15.10% 14.54% 13.82% assets) Common equity tier 1 (to risk weighted 15.10% 14.54% 13.82% assets) Tier 1 capital (to average tangible 11.22% 10.72% 9.82% assets) Tangible common equity (to average 8.91% 8.42% 8.05% tangible assets) (non-GAAP) DEPOSIT MIX Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017 March 31, 2018 ------------- -------------- ------------- ----------- Interest checking $ 183,426 $ 182,947 $ 170,151 $ 192,989 Regular savings 137,323 138,082 136,249 134,931 Money market deposit accounts 242,081 252,738 270,193 265,661 Non-interest checking 284,939 300,659 264,728 278,966 Certificates of deposit 95,809 107,846 130,893 123,144 Total deposits $ 943,578 $ 982,272 $ 972,214 $ 995,691 - --------- - - --------- -- - --------- - - ---------

COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS Other Commercial Real Real & Commercial Estate Estate Constructi on Business Mortgage Constructi Total on --------- --------- --------- --------- December 31, 2018 (Dollars in thousands) Commercial business $ 154,360 $ - $ - $ 154,360 Commercial construction - - 58,197 58,197 Office buildings - 119,850 - 119,850 Warehouse/industrial - 90,167 - 90,167 Retail/shopping centers/strip malls - 64,317 - 64,317 Assisted living facilities - 2,790 - 2,790 Single purpose facilities - 191,237 - 191,237 Land - 18,506 - 18,506 Multi-family - 54,930 - 54,930 One-to-four family construction - - 18,321 18,321 - ------- - ------- - ------- Total $ 154,360 $ 541,797 $ 76,518 $ 772,675 - ------- - ------- - ------- - ------- March 31, 2018 Commercial business $ 137,672 $ - $ - $ 137,672 Commercial construction - - 23,158 23,158 Office buildings - 124,000 - 124,000 Warehouse/industrial - 89,442 - 89,442 Retail/shopping centers/strip malls - 68,932 - 68,932 Assisted living facilities - 2,934 - 2,934 Single purpose facilities - 165,289 - 165,289 Land - 15,337 - 15,337 Multi-family - 63,080 - 63,080 One-to-four family construction - - 16,426 16,426 - ------- - ------- - ------- Total $ 137,672 $ 529,014 $ 39,584 $ 706,270 - ------- - ------- - ------- - ------- LOAN MIX Dec. 31, Sept. 30, Dec. 31, March 31, 2018 2018 2017 2018 --------- --------- --------- --------- (Dollars in thousands) Commercial and construction Commercial business $ 154,360 $ 155,487 $ 130,960 $ 137,672 Other real estate mortgage 541,797 533,258 516,223 529,014 Real estate construction 76,518 62,795 40,743 39,584 - ------- - ------- - ------- - ------- Total commercial and construction 772,675 751,540 687,926 706,270 Consumer Real estate one-to-four family 86,240 86,950 91,752 90,109 Other installment 9,721 11,352 17,649 14,997 - ------- - ------- - ------- - ------- Total consumer 95,961 98,302 109,401 105,106 --------- --------- --------- --------- Total loans 868,636 849,842 797,327 811,376 Less: Allowance for loan losses 11,502 11,513 10,867 10,766 - ------- - ------- - ------- - ------- Loans receivable, net $ 857,134 $ 838,329 $ 786,460 $ 800,610 - ------- - ------- - ------- - -------

DETAIL OF NON-PERFORMING ASSETS Other Southwes t Oregon Washingt Other Total on ------- ------- -------- -------- December 31, 2018 (dollars in thousands) Commercial business $ - $ 163 $ 105 $ 268 Commercial real estate 924 188 - 1,112 Consumer - 173 59 232 - ----- - ----- - ------ - ------ Total non-performing loans $ 924 $ 524 $ 164 $ 1,612 - ----- - ----- - ------ - ------ DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS Northwes Other Southwest t Oregon Oregon Washingto Total n ------- ------- -------- -------- December 31, 2018 (dollars in thousands) Land development $ 2,187 $ 1,927 $ 14,392 $ 18,506 Speculative construction 1,098 81 14,226 15,405 - ----- - ----- - ------ - ------ Total land development and speculative construction $ 3,285 $ 2,008 $ 28,618 $ 33,911 - ----- - ----- - ------ - ------

At or for the three months ended At or for the nine months ended SELECTED OPERATING DATA Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Efficiency ratio (4) 60.87 % 60.99 % 62.53 % 61.30 % 65.74 % Coverage ratio (6) 132.68 % 130.14 % 126.15 % 130.04 % 120.62 % Return on average assets (1) 1.53 % 1.46 % 0.53 % 1.52 % 0.85 % Return on average equity (1) 13.90 % 13.68 % 5.07 % 14.17 % 8.25 % NET INTEREST SPREAD Yield on loans 5.17 % 5.17 % 5.04 % 5.22 % 5.03 % Yield on investment securities 2.38 % 2.27 % 2.24 % 2.32 % 2.20 % Total yield on interest-earning 4.63 % 4.56 % 4.28 % 4.61 % 4.29 % assets Cost of interest-bearing deposits 0.14 % 0.15 % 0.17 % 0.15 % 0.17 % Cost of FHLB advances and other 4.35 % 4.82 % 3.89 % 4.49 % 3.80 % borrowings Total cost of interest-bearing 0.37 % 0.34 % 0.31 % 0.35 % 0.31 % liabilities Spread (7) 4.26 % 4.22 % 3.97 % 4.26 % 3.98 % Net interest margin 4.39 % 4.33 % 4.06 % 4.37 % 4.06 % PER SHARE DATA Basic earnings per share (2) $ 0.19 $ 0.19 $ 0.07 $ 0.58 $ 0.32 Diluted earnings per share (3) 0.19 0.19 0.07 0.58 0.32 Book value per share (5) 5.67 5.42 5.18 5.67 5.18 Tangible book value per share (5) 4.43 4.17 3.93 4.43 3.93 (non-GAAP) Market price per share: High for the period $ 8.75 $ 9.91 $ 9.45 $ 9.91 $ 9.45 Low for the period 7.03 8.47 8.44 7.03 6.51 Close for period end 7.28 8.84 8.67 7.28 8.67 Cash dividends declared per share 0.0400 0.0350 0.0300 0.1100 0.0750 Average number of shares outstanding: Basic (2) 22,598,712 22,579,839 22,537,092 22,582,956 22,520,352 Diluted (3) 22,663,919 22,658,737 22,622,129 22,658,153 22,608,603

(1) Amounts for the quarterly periods are annualized.(2) Amounts exclude ESOP shares not committed to be released.(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.(4) Non-interest expense divided by net interest income and non-interest income.(5) Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.(6) Net interest income divided by non-interest expense.(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contact: Kevin Lycklama or David LamRiverview Bancorp, Inc. 360-693-6650

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