Vancouver-based Riverview Bancorp, parent of Riverview Community Bank, has extended its profitability into a sixth consecutive quarter.
The bank on Wednesday reported a net income of $801,000, or $0.04 per diluted share, for the fiscal 2014 quarter that ended Dec. 31.
Third-quarter income was more than double Riverview’s income of $341,000 in the year’s second fiscal quarter. In its third fiscal quarter one year ago, Riverview reported $1 million in income.
For the first three quarters of the current fiscal year, Riverview has reported $2.8 million in net income, compared to $1 million in the same three-quarter period one year earlier.
“Our third-quarter profits continue to demonstrate the strength of our franchise and the success of our turnaround plan,” stated Pat Sheaffer, chairman and CEO, in an earnings release issued after markets closed.
The bank’s earnings showed improvements in key measures of financial health. Riverview’s non-performing assets, or bad loans, decreased by $4.3 million in the quarter, a 14.6 percent drop. Over the past year, those non-performing loans have dropped by 44 percent, Riverview reported.
Total deposits increased to $689.3 million for the period ending Dec. 31, compared to $672.8 million three months earlier and $682.8 million a year earlier. Riverview’s capital ratio rose to 16.7 percent, from 16 percent in the previous quarter.
Although Riverview’s loan originations were up by 52 percent for the quarter to $41 million, its net loans dropped slightly. The bank attributed the drop to several large loan payoffs, as well as reductions in other loan balances.
“The current economic outlook in Southwest Washington and Portland is improving, and we are seeing encouraging signs in our market,” Sheaffer said. “Our general business outlook continues to get better as the economic recovery gains strength. Loan demand is strengthening and our loan pipeline has continued to grow over the last several quarters.”
Riverview operates 18 branches, including thirteen in the Portland-Vancouver area, and three lending centers. It has $805 million in assets. Riverview is the only remaining bank based in Clark County.
The bank’s stock rose by three cents per share on Wednesday, closing at $3.13.