Riverview Bancorp, Inc., Vancouver-based parent to Riverview Community Bank, today reported a net loss of $1.8 million, or 8 cents per share, in its first fiscal quarter that ended June 30. That’s a big improvement for Riverview, which had reported a $16 million loss in its previous quarter and a $31.7 million loss for fiscal year 2011.
The struggling bank managed to shore up its bottom line in part through the sale of $31.4 million in single-family mortgage loans to the Federal Home Loan Mortgage Corp. Still, it recorded a $4 million provision for loan losses, giving it a loan loss balance of $21 million.
The bank’s loan portfolio showed signs of stabilizing, with so-called non performing loans decreasing from $44.2 million to $36.8 million. Still, Riverview increased its bank-owned properties by $3.3 million during the quarter, giving it $22.1 million of such properties.
Ron Wysaske, Riverview’s president and chief operating officer, said the sale of top-quality mortgage loans earned Riverview a small profit. But more importantly, he said it gave the bank more financial flexibility moving forward.
“We had some balance sheet management we had to do,” he said. He remained optimistic about the bank and an improved local economy.
“The tide is turning,” Wysaske said.
Riverview last week announced an aggressive effort to market some $100 million in personal and business loans, part of a strategy to promote itself as Clark County’s last remaining home-based bank. The former First Independent Bank, which also was based in Vancouver, was acquired by Spokane-based Sterling Bank earlier this year.
“We are kind of the last man standing, and proud to be a community bank in the local community,” he said.
Riverview’s stock, which had closed at $1.33 per share on Tuesday, rose 5 percent, to $1.40 per share on Wednesday.