Riverview Bancorp, based in Vancouver, on Friday revised its recent fourth-quarter financial report by adding another $3.2 million to a reserve fund to cover losses from existing loans.
The change increases the quarterly loss for Riverview, parent to Riverview Community Bank, to $16 million, or 71 cents per share, for the quarter ending March 31 of this year. That loss almost matches the previous quarter’s $16.6 million loss and brings the bank’s net loss for the fiscal year to $31.7 million, or $1.42 per share.
“The increase in the provision for loan losses was necessary as a result of updated information received by the Bank on three commercial properties as well as the current regulatory guidance for these individual properties,” Pat Sheaffer, chairman and CEO, said in a disclosure statement. “This additional provision for loan losses increases the Bank’s reserves as we remain diligent in our efforts to reduce our non-performing assets.”
The banking company said its allowance for loan losses increased to $19.9 million at the end of March, representing 2.9 percent of total loans and 45.1 percent of its $44.4 million in nonperforming loans. Those nonperforming loans accounted for almost 6.5 percent of Riverview’s total loans.
