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.