Riverview Bancorp on Thursday reported its fourth consecutive profitable quarter in an earnings report filled with good news for the Vancouver-based corporate parent of Riverview Community Bank.
Riverview earned $854,000 for the three-month period ending March 31, or 4 cents a diluted share, ending its fiscal year with a $4.3 million profit. That compares to a net loss of $5.4 million for fiscal year 2010.
The bank’s net loans increased $12.5 million in the quarter, made up primarily of small business loans and single-family mortgages. Non-performing loans dropped to $12.3 million, or 1.79 percent of total loans, the lowest level since March 2008. One year ago, Riverview had $36 million in such problem loans on its books.
Riverview also shrank its pool of bank-owned properties to $27.6 million, down by more than $3 million from the previous quarter. It has been able to shrink its supply of unwanted property because more borrowers are able to make their payments, said Kevin Lycklama, executive vice president and Riverview’s chief financial officer. “The inflow has slowed down in the last several months,” he said.
No government help
Bank executives are proud of having dug out of the recession without financial assistance from government or a boost from private funding sources, said Kim Capeloto, Riverview’s executive vice president of marketing and operations. “We slugged it out in the trenches,” Capeloto said. “This is growth through the communities we serve.”
Looking ahead, Riverview expects continued growth in lending and in specialized services, including financial services to the medical industry. Capeloto didn’t rule out expanding into new territory. Twelve of the bank’s 17 branches are in the Portland-Vancouver area. “We are open to looking at any opportunities for expansion of our franchise,” he said.
Riverview, with 248 employees, has assets of $859 million. It filed its report following the close of trading on Wall Street. The bank’s stock, which trades as RVSB, closed up 8 cents at $3.00.
Last week, Vancouver-based First Independent Bank reported a quarterly net income of $4.6 million, but noted that much of that profit was due to recovery on a single real estate loan that had been written off as a loss. The bank, owned by the Firstenburg family, had taken a one-year loss of $31.9 million for 2010, and its recovery was aided by contributions of some $28 million in cash and real estate to the bank from the Firstenburgs.
