Riverview Bancorp, Inc. :RVSB-US: Earnings Analysis: Q3, 2017 By the Numbers : January 31, 2017

Riverview Bancorp, Inc. reports financial results for the quarter ended December 31, 2016.

We analyze the earnings along side the following peers of Riverview Bancorp, Inc. – First Financial Northwest, Inc., Timberland Bancorp, Inc., Washington Federal, Inc., FS Bancorp, Inc. and Provident Financial Holdings, Inc. (FFNW-US, TSBK-US, WAFD-US, FSBW-US and PROV-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 10.89 million, Net Earnings of USD 1.99 million.
  • Net interest income margins widened from 75.60% to 78.06% compared to the same period last year.
  • Net loan assets changed 8.91% compared to same period last year and 2.06% from previous period, total deposits changed 12.42% compared to same period last year and 0.18% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016-12-31 2016-09-30 2016-06-30 2016-03-31 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 10.89 10.39 10.34 9.63 9.9
Revenue Growth (%YOY) 9.97 10.82 6.86 5.87 10.26
Earnings (mil) 1.99 1.68 1.7 1.41 1.71
Earnings Growth (%YOY) 16.82 1.69 6.39 -7.44 48.48
Net Margin (%) 18.3 16.16 16.42 14.6 17.23
EPS 0.09 0.07 0.08 0.06 0.08
Return on Equity (%) 7.23 6.08 6.22 5.25 6.41
Return on Assets (%) 0.81 0.7 0.73 0.62 0.77

Access our Ratings and Scores for Riverview Bancorp, Inc.

Market Share Versus Profits

Revenues History
Earnings History

RVSB-US‘s change in revenue this period compared to the same period last year of 9.97% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that RVSB-US is holding onto its market share. Also, for comparison purposes, revenues changed by 4.78% and earnings by 18.63% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings growth was influenced by the following factors: (1) Year-on-year improvements in net interest income margins from 75.60% to 78.06% and (2) improvement in loan loss provisions. As a result, net interest income after provisions margins improved from 75.60% to 78.06% compared to the same period last year. Loan loss provisions as a percentage of net interest income were 0% this period and 0% a year ago.

Net Interest Income Margin Versus Loan Loss Provisions Margin

Quadrant label definitions. Hover to know more

High Risk; High Reward Loans, Risky Loan Portfolio, Conservative Loan Portfolio, Safer Loan Portfolio
Net Interest Income Margin History
Loan Loss Provisions Margin History

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

The firm’s improvement in net interest income margins was influenced by both the relative increase in the levels of net loan assets and the level of total deposits as a percentage of equity. On an absolute basis, net loan assets changed 8.91% compared to the same period last year and 2.06% from the previous period. Total deposits changed 12.42% compared to the same period last year and 0.18% from the previous period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 26.41% to 27.40% and (2) one-time items. The company’s pretax margins are now 27.40%, compared to 25.80% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for Riverview Bancorp, Inc.

Company Profile

Riverview Bancorp, Inc. is a savings and loan holding company of Riverview Community Bank. It offers community banking services, focusing on providing service and financial products to commercial and retail customers. The company was founded in 1997 and is headquartered in Vancouver, WA.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of RVSB-US.