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.
The additional provision for loan losses was primarily related to three individual properties, Riverview said. The first was a $2.7 million commercial real estate site in Portland, and the second was a $992,000 commercial real estate loan to a related borrower, also in Portland. Riverview said it charged off a total of $1.9 million for these two properties. Both of these loans have continued to pay as agreed and have not missed any of their required payments, Riverview said.
An additional provision of $600,000 was for a land development project in Southwest Washington, Riverview said.