Riverview Bancorp Inc. is another step closer in its effort to raise $23 million by issuing new common stock.
The Vancouver-based holding company of Riverview Community Bank has updated its original plan with the Securities and Exchange Commission.
The bank, which operates 10 branches in Clark County, intends to use $17 million of the net proceeds from the offering to “support its growth and related capital needs,” according to the filing. The remaining $6 million will be used to improve the bank’s working capital and pay down debt.
“We’d like to resume the growth we saw over the last 10 years at a moderate pace that allows (us) to grow and still balance the risks involved,” said Ron Wysaske, president of Riverview Community Bank, in an interview earlier this year. “We want to take advantage of opportunities and open new offices, and all of that requires capital.”
Riverview in October announced it would offer $29 million in common stock to help grow the bank and increase the bank’s loan loss reserves. It now appears to be seeking less.
As of March 31, the bank held total assets of $838 million, total deposits of $688 million and had shareholders’ equity of $83.9 million.
Troubled loans and foreclosed property on Riverview’s books increased from $41.7 million on March 31, 2009, to $49.3 million one year later, according to the bank. But it has been working to reduce its exposure to land development and speculative construction loans, which have been more likely to run into trouble than other types of loans. Development and construction loans were down to $105.4 million as of March 31, compared with $149.6 million a year earlier.
Riverview’s stock closed Friday at $2.39 per share on the Nasdaq exchange.