RIVERVIEW FINANCIAL CORPORATION

REPORTS RECORD SECOND QUARTER AND YEAR TO DATE EARNINGS FOR 2021

HARRISBURG, PA, July 20, 2021 / PRNEWSWIRE / Riverview Financial Corporation (the 'Company' or 'Riverview') (NASDAQ: RIVE), the holding company for Riverview Bank (the 'Bank'), today reported record net income of $4.8 million, or $0.51 per basic and diluted weighted average common share, for the second quarter of 2021, compared to a net loss of $24.1 million, or $(2.61) per basic and diluted weighted average common share, for the second quarter of 2020. For the six months ended June 30, 2021, Riverview reported record net income of $7.8 million, or $0.84 per basic and diluted weighted average common share, compared to a net loss of $23.5 million, or $(2.54) per basic and diluted weighted average common share, for the same period last year.

Major factors impacting 2021 earnings included the acceleration of income earned on Paycheck Protection Program ('PPP') loans, the recognition of a deposit premium on branch sales and the recovery of provision for loan losses. During the first half of 2021, SBA forgiveness of PPP loans increased causing an acceleration in the recognition of fees as these loans were paid off. Approximately 75.0%, amounting to $188.9 million of the outstanding PPP loans at December 31, 2020, were forgiven in the first half of 2021. Net interest income generated from PPP loans totaled $2.7 million in the second quarter of 2021 and $4.1 million in the first half of 2021. On May 24, 2021, the Company announced the completion of the sale of the branch office located in Meyersdale and related liabilities of the Meyersdale and Somerset branches, resulting in the recognition of $1.6 million of noninterest income in the form of a deposit premium. The $735 thousand recovery of provision for loan losses recognized in the second quarter of 2021 was due to experiencing continued stability in the credit quality of the loan portfolio since the onset of the pandemic, as well as evidence of an overall mitigation of related risks factors. As a result of the uncertainty of the magnitude and longevity of the impact of COVID-19, the Company bolstered its allowance for loan losses through additional provisions totaling $6.3 million in 2020 due primarily to increased qualitative factors for the economy and concentrations in industries specifically affected by the virus. Current national and local economic conditions reflect a more stable economic climate in 2021 compared with the previous year. The Company was able to decrease its qualitative factors in the second quarter based on the remaining low number of CARES Act payment deferrals, improvements in industries most likely to be affected by the pandemic, and continued stability in the credit quality metrics of the loan portfolio. Despite the improvements brought on by medical advances, government assistance programs and their positive impacts on employment and consumer and business activity, future credit loss provisions are subject to significant uncertainty as the pandemic recovery continues to unfold.

The major factors causing the reported net losses of $24.1 million for the three months and $23.5 million for the six months ended June 30, 2020 were a non-cash charge related to the recognition of goodwill impairment and an increase in the provision for loan losses, both stemming from the COVID-19 pandemic. The goodwill impairment of $24.8 million had no impact on tangible book value, regulatory capital ratios, liquidity and the Company's cash balances. For the three and six months ended June 30, 2020, the provisions for loan losses totaled $2.0 million and $3.8 million, respectively.

On June 30, 2021, Riverview entered into an Agreement and Plan of Merger (the 'Merger Agreement') with Mid Penn Bancorp, Inc. ('Mid Penn') pursuant to which Riverview will merge with and into Mid Penn (the 'Merger'), with Mid Penn being the surviving corporation in the Merger. Upon consummation of the Merger, Riverview Bank, a wholly-owned subsidiary of Riverview, will be merged with and into Mid Penn Bank, a wholly-owned subsidiary of Mid Penn, with Mid Penn Bank being the surviving bank in the Bank Merger. The Merger Agreement was unanimously approved by the boards of directors of Mid Penn and Riverview. Subject to customary and required regulatory and shareholder approval, it is anticipated the Merger will be consummated in the fourth quarter of 2021.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ('GAAP'), Riverview routinely supplements its evaluation with an

analysis of certain non-GAAP financial measures, such as tangible book value per share and return on average tangible stockholders' equity. Riverview believes these non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measures is provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.

HIGHLIGHTS

Return on average stockholders' equity and return on average assets were 18.88% and 1.46% for the second quarter of 2021 and 15.77% and 1.18% for the first half of 2021.

Tangible book value increased $1.03 per share, or 10.4%, to $10.97 per share at June 30, 2021 from $9.94 per share at June 30, 2020.

Tangible stockholders' equity to tangible assets grew to 8.47% at June 30, 2021 from 6.85% at June 30, 2020.

Tax-equivalent net interest income improved 13.9% to $11.1 million for the quarter ended June 30, 2021, compared to $9.7 million for the comparable quarter of 2020.

Total interest-bearing deposit costs declined 29 basis points to 0.38% for the second quarter 2021, compared to 0.67% for the same quarter 2020.

Operating efficiency ratio improved to 63.58% in the second quarter of 2021, compared to 76.84% in the comparable quarter of 2020.

Total loans 30 or more days past due plus nonaccrual loan balances total $3.9 million at June 30, 2021, a continued improvement compared to $4.3 million at the end of the prior quarter, representing the lowest quarter end dollar level since December 2016.

For the six months ended June 30, net charge-offs to average loans, net were 0.11% in 2021 and 0.33% in 2020, reflecting a single credit relationship restructure, which had been specifically reserved for in prior period allowance calculations.

The allowance for loan losses totaled $10.9 million, or 1.15% of loans, net at June 30, 2021 compared to $9.7 million or 0.84% of loans, net at June 30, 2020. Excluding 100% SBA guaranteed PPP loan balances, the allowance for loan losses represented 1.25% of loans, net at June 30, 2021.

Nonperforming assets totaled $12.0 million or 1.26% of loans, net and foreclosed assets at June 30, 2021. Excluding performing troubled debt restructured loans, nonperforming assets represented 0.29% of loans, net and foreclosed assets at the end of the second quarter 2021.

The allowance for loan losses as a percentage of nonperforming assets coverage ratio, excluding accruing restructured loans, was 401.6% at June 30, 2021.

Continued reduction in COVID-19 pandemic related loan deferments during the second quarter of 2021. As of June 30, 2021, loans in deferment consist of 7 loans totaling $6.0 million, representing 0.63% of total outstanding loan balances, or 0.69% excluding outstanding PPP loan balances. Total current principal and interest deferred for these 7 loans totaled $219 thousand. As of December 31, 2020, loans in deferment consists of 19 loans totaling $21.9 million, representing 1.92% of total outstanding loan balances, or 2.46% excluding outstanding PPP loan balances.

President and Chief Executive Officer, Brett D. Fulk, commented, 'I am extremely pleased with our Company's record level of financial performance during the second quarter and first half of 2021. During the second quarter 2021, we earned $0.51 per share, an increase of 55% when compared to the previous quarter's $0.33 per share. Despite the challenging interest rate environment and continuation of the impact of the pandemic, we were able to improve both net interest income and our overall operating results. As I have stated previously,

focused strategic initiatives developed and implemented by a team of dedicated and highly talented employees is the defining factor in our ability to generate record performance levels year-to-date through record earnings results in both the first and second quarters of 2021. The effectiveness of our efforts is evidenced by first half of 2021 return on average assets and return on average tangible stockholder equity results of 1.46% and 18.88%, respectively.'

'Additionally, despite the challenges to the economy created by the COVID-19 virus, I am pleased to continue reporting strong credit quality metrics for the second quarter. At the end of the second quarter 2021, for the second consecutive quarter, we are reporting the lowest level of nonaccrual and past due loan balances since the fourth quarter of 2016. It is particularly gratifying to report solid credit quality when it is due in no small measure to intentional strategic decisions implemented proactively to reduce the credit risk profile of our balance sheet in the two years prior to the COVID-19 outbreak.'

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended June 30, increased $1.4 million to $11.1 million in 2021 from $9.7 million in 2020. The increase in tax-equivalent net interest income was primarily attributable to an acceleration in the recognition of fees earned on forgiven PPP loans. The tax-equivalent net interest margin for the three months ended June 30, 2021, increased to 3.59% from 3.29% for the comparable period of 2020. The tax-equivalent yield on the loan portfolio increased to 4.60% in the second quarter of 2021 compared to 4.08% in second quarter of 2020. Investments yielded 1.97% on a tax-equivalent basis in the second quarter of 2021 compared to 2.91% for the same period last year. For the three months ended June 30, the cost of deposits decreased 29 basis points to 0.38% in 2021 from 0.67% in 2020. Loans, net averaged $1.0 billion in the second quarter of 2021 and $1.1 billion in the second quarter of 2020. Average investments totaled $149.7 million in 2021 and $66.7 million in 2020. Average interest-bearing liabilities increased to $1.0 billion in 2021 from $988.8 million in 2020.

For the six months ended June 30, tax-equivalent net interest income increased $2.2 million to $20.8 million in 2021 from $18.6 million in 2020. The Company recognized net interest income on PPP loans totaling $4.1 million for the first half of 2021 compared to $1.1 million for the same period last year. For the six months ended June 30, tax-equivalent net interest margin was 3.31% in 2021 compared to 3.43% in 2020. The tax-equivalent yield on the loan portfolio decreased to 4.19% in the six months ended June 30, 2021 compared to 4.33% for the same period in 2020. For the six months ended June 30, investments yielded 2.03% on a tax-equivalent basis in 2021 compared to 2.88% for the same period last year. The cost of deposits decreased 38 basis points to 0.40% in the first six months of 2021 from 0.78% for the same period in 2020. The cost of interest-bearing liabilities decreased to 0.58% in the first half of 2021 from 0.80% in the first half of 2020. Loans averaged $1.1 billion for the six months ended June 30, 2021 compared to $975.2 million for the same period last year.

The Company reported a recovery of provision for loan losses of $735 thousand for the three and six months ended June 30, 2021. As aforementioned, the recapture of the provision for loan losses was a result of waning risk factors associated with the continued recovery from the impact of the pandemic, coupled with credit portfolio performance trends. Conversely, the Company recognized charges in the form of a provision for loan losses of $2.0 million and $3.8 million for the three and six months ended June 30, 2020. The provision for loan losses was the combined result of loan growth, increases in historical loss factors, and changes in qualitative factors related to the allowance for loan losses reserve associated with the effects of COVID-19 as of June 30, 2020.

For the quarter ended June 30, noninterest income totaled $3.7 million in 2021 compared to $2.0 million in 2020. The primary reason for the improvement was the recognition of a $1.6 million deposit premium from the sale of deposits of two branch offices in the second quarter of 2021. Trust and wealth management income increased $84 thousand and $42 thousand, respectively, comparing the second quarters of 2021 and 2020. Mortgage banking originations and income decreased $206 thousand in the second quarter of 2021 compared to the same period of 2020 due to a reduction in residential refinance mortgage activity.

For the six months ended June 30, noninterest income increased $1.3 million to $6.2 million from $4.9 million in 2020. The primary contributors to the overall increase were the premium on the deposit sale offset partially by a decrease of $542 thousand in gains on the sale of investment securities. Trust commissions and wealth management income increased $131 thousand and $36 thousand which were offset by a $163 thousand decrease in mortgage banking income comparing the six months ended June 30, 2021 and 2020.

Noninterest expense decreased $24.5 million to $9.5 million for the three months ended June 30, 2021, from $34.0 million for the same period last year. The decrease was primarily due to the noncash goodwill impairment charge of $24.8 million recorded in the second quarter of 2020. For the six months ended June 30, noninterest expense decreased to $17.9 million in 2021 compared to $43.2 million for the same period in 2020. In addition to the goodwill impairment charge, noninterest expense decreased in 2021 from implementing efficiency initiatives and selective cost reduction measures.

BALANCE SHEET REVIEW

Total assets, loans, net, and deposits totaled $1.2 billion, $948.7 million, and $1.0 billion, respectively, at June 30, 2021. For the three months ended June 30, 2021, total assets, loans, net and deposits decreased $160.1 million, $143.1 million and $36.4 million, respectively. Loans, net decreased in the second quarter of 2021 as business lending, including commercial and commercial real estate loans, decreased $117.1 million due primarily to SBA forgiveness payments on PPP loans. For this same period, construction lending decreased $22.8 million while retail lending, which includes residential mortgage, home equity and consumer loans, decreased $3.2 million. Total investments decreased $7.8 million in the second quarter of 2021. The reduction in total deposits consisted of decreases in noninterest-bearing deposits of $13.5 million and interest-bearing deposits of $22.9 million. As a percentage of total deposits, noninterest-bearing deposits amounted to 17.6% at June 30, 2021 and 17.1% at December 31, 2020. Long term debt decreased $128.7 million primarily through the repayment of the Federal Reserve Bank's PPPLF program as PPP loans were forgiven in the second quarter of 2021. For the six months ended June 30, 2021, total assets and loans, net decreased $142.9 million and $190.5 million, respectively, while deposits increased $29.1 million. Total investments increased to $148.0 million at June 30, 2021, compared to $103.7 million at December 31, 2020 as security purchases more than offset payments and prepayments.

Stockholders' equity totaled $104.4 million, or $11.15 per share, at June 30, 2021 and $97.4 million, or $10.47 per share, at December 31, 2020. The increase in stockholders' equity for the six months ended June 30, 2021 was due primarily to recognizing earnings partially offset by a change in accumulated other comprehensive income. Tangible stockholders' equity per common share increased to $10.97 at June 30, 2021, compared to $10.26 at December 31, 2020.

ASSET QUALITY REVIEW

Nonperforming assets were $12.0 million, or 1.26% of loans, net, and foreclosed assets at June 30, 2021, $13.2 million, or 1.20%, at March 31, 2021, and $13.4 million, or 1.15%, at June 30, 2020. All major categories of nonperforming loans decreased in the second quarter of 2021. Nonaccrual loans, accruing troubled debt restructured loans and accruing loans past due 90 days or more decreased $432 thousand, $663 thousand, and $74 thousand, respectively, in the three months ended June 30, 2021. The majority of the $9.3 million balance in accruing troubled debt restructured loans at the end of the second quarter 2020 was due primarily to one commercial real estate relationship. Adjusting for accruing restructured loans, nonperforming assets were $2.7 million, or 0.29% of loans, net and foreclosed assets at June 30, 2021, and $3.2 million, or 0.29%, at March 31, 2021. The allowance for loan losses balance equaled $10.9 million, or 1.15%, of loans, net, and 1.25% excluding 100% SBA guaranteed PPP loan balances outstanding, at June 30, 2021, compared to $12.1 million, or 1.11%, of loans, net, at March 31, 2021. The coverage ratio, the allowance for loan losses as a percentage of nonperforming assets, was 90.7% at June 30, 2021 and 92.3% at March 31, 2021. Loans charged-off, net of recoveries, for the six months ended June 30, 2021 equaled $598 thousand or 0.11% of average loans compared to $1.6 million or 0.33% for the same period last year.

Riverview Financial Corporation is the parent company of Riverview Bank. An independent community bank, Riverview Bank serves the Pennsylvania market areas of Berks, Blair, Bucks, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry and Schuylkill Counties through 23 community banking offices and three limited purpose offices. Each full-service community banking office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Riverview's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's common stock trades on the NASDAQ Global Market under the symbol 'RIVE'. The Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

SOURCE: Riverview Financial Corporation

Contact: Scott A. Seasock, CFO at 717.827.4039 or sseasock@riverviewbankpa.com

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, 'Riverview') that may be considered 'forward-looking statements' as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as 'believe,' 'expect,' 'anticipate,' 'should,' 'planned,' 'estimated,' 'intend' and 'potential.' For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview's operations, pricing, products and services and other factors that may be described in Riverview's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. Beginning with the first quarter of 2020, the COVID-19 pandemic continues to have an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on the Company's business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be back to normal. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following risks, any of which could have a material, adverse effect on the Company's business, financial condition, liquidity, and results of operations: the demand for Bank's products and services may decline, making it difficult to grow assets and income; if the economy is unable to continue to substantially reopen, and higher levels of unemployment persist, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; the Company's allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect the Company's net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company; as the result of the decline in the Federal Reserve Board's target federal funds rate to near 0%, the yield on the Company's assets may decline to a greater extent than the decline in the Company's cost of interest-bearing liabilities, continue reducing the Company's net interest margin and spread and net income; the Company's wealth management revenues may decline with continuing market turmoil; and the Company's cybersecurity risks are increased as the result of an increase in the number of employees working remotely. The risk factors associated with this event could have a material adverse effect on significant estimates, operations and business results of Riverview. Significant estimates as disclosed in Riverview's Forms 10-K and 10-Q include allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loan, determination of other-than-temporary impairment losses on securities, impairment of goodwill and intangible assets.

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ('GAAP'), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and Core net income ratios. The reported results included in this press release contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale, acquisition related expenses and the adjustment to tax expense due to the enactment of the Tax Act. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview's results of operation. Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview's industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions. These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.

[TABULAR MATERIAL FOLLOWS]

Summary Data

Riverview Financial Corporation

Five Quarter Trend

(In thousands, except per share data)

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

June 30

2020

Key performance data:

Per common share data:

Net income (loss)

$ 0.51 $ 0.33 $ 0.17 $ 0.08 $ (2.61 )

Core net income (1)

$ 0.53 $ 0.31 $ 0.17 $ 0.07 $ 0.05

Cash dividends declared

$ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.08

Book value

$ 11.15 $ 10.55 $ 10.47 $ 10.28 $ 10.20

Tangible book value (1)

$ 10.97 $ 10.36 $ 10.26 $ 10.04 $ 9.94

Market value:

High

$ 13.36 $ 10.82 $ 9.50 $ 7.77 $ 7.60

Low

$ 9.87 $ 9.01 $ 6.76 $ 5.25 $ 4.13

Closing

$ 11.43 $ 10.45 $ 9.15 $ 6.76 $ 5.38

Market capitalization

$ 107,007 $ 97,695 $ 85,154 $ 62,729 $ 49,839

Common shares outstanding

9,361,967 9,348,831 9,306,442 9,279,503 9,263,697

Selected ratios:

Return on average stockholders' equity

18.88 % 12.55 % 6.51 % 2.88 % (81.21 )%

Core return on average stockholders' equity (1)

19.60 % 11.75 % 6.51 % 2.88 % 1.55 %

Return on average tangible stockholders' equity (1)

19.20 % 12.78 % 6.66 % 2.95 % (104.88 )%

Core return on average tangible stockholders' equity (1)

19.94 % 11.97 % 6.66 % 2.95 % 2.00 %

Tangible stockholders' equity to tangible assets (1)

8.47 % 7.05 % 7.05 % 6.88 % 6.85 %

Return on average assets

1.46 % 0.91 % 0.46 % 0.20 % (7.50 )%

Core return on average assets (1)

1.52 % 0.85 % 0.46 % 0.20 % 0.14 %

Stockholders' equity to total assets

8.59 % 7.17 % 7.18 % 7.03 % 7.01 %

Efficiency ratio (2)

63.58 % 68.94 % 76.13 % 77.46 % 76.84 %

Nonperforming assets to loans, net, and foreclosed assets

1.26 % 1.20 % 1.05 % 1.12 % 1.15 %

Net charge-offs to average loans, net

0.21 % 0.02 % 0.02 % (0.02 )% 0.20 %

Allowance for loan losses to loans, net

1.15 % 1.11 % 1.07 % 1.00 % 0.84 %

Earning assets yield (FTE) (3)

4.04 % 3.54 % 3.74 % 3.73 % 3.85 %

Cost of funds

0.56 % 0.59 % 0.63 % 0.56 % 0.67 %

Net interest spread (FTE) (3)

3.48 % 2.95 % 3.11 % 3.17 % 3.18 %

Net interest margin (FTE) (3)

3.59 % 3.04 % 3.21 % 3.26 % 3.29 %
(1)

See Reconciliation of Non-GAAP financial measures.

(2)

Total noninterest expense less amortization of intangible assets and goodwill impairment charge divided by tax-equivalent net interest income and noninterest income less net gain (loss) on sale of investment securities available-for-sale.

(3)

Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate.

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)

Six Months Ended

Jun 30

2021

Jun 30

2020

Interest income:

Interest and fees on loans:

Taxable

$ 21,877 $ 20,384

Tax-exempt

358 481

Interest and dividends on investment securities:

Taxable

1,047 931

Tax-exempt

296 105

Interest on interest-bearing deposits in other banks

24 101

Total interest income

23,602 22,002

Interest expense:

Interest on deposits

1,745 3,184

Interest on short-term borrowings

28

Interest on long-term debt

1,231 348

Total interest expense

2,976 3,560

Net interest income

20,626 18,442

(Recovery of) provision for loan losses

(735 ) 3,812

Net interest income after (recovery of) provision for loan losses

21,361 14,630

Noninterest income:

Service charges, fees and commissions

4,229 2,392

Commissions and fees on fiduciary activities

554 423

Wealth management income

452 416

Mortgage banking income

336 499

Life insurance investment income

374 386

Net gain on sale of investment securities available-for-sale

273 815

Total noninterest income

6,218 4,931

Noninterest expense:

Salaries and employee benefits expense

9,961 10,041

Net occupancy and equipment expense

2,044 2,248

Amortization of intangible assets

264 339

Goodwill impairment

24,754

Net benefit of operation of other real estate owned

(22 ) (11 )

Other expenses

5,664 5,795

Total noninterest expense

17,911 43,166

Income (loss) before income taxes

9,668 (23,605 )

Provision (benefit) for income tax expense

1,828 (116 )

Net income (loss)

$ 7,840 $ (23,489 )

Other comprehensive income (loss):

Unrealized gain (loss) on investment securities available-for-sale

$ (1,750 ) $ 1,893

Reclassification adjustment for gain included in net income

(273 ) (815 )

Change in pension liability

Change in cash flow hedge

373 (38 )

Income tax expense (benefit) related to other comprehensive income

(347 ) 218

Other comprehensive income (loss), net of income taxes

(1,303 ) 822

Comprehensive income (loss)

$ 6,537 $ (22,667 )

Per common share data:

Net income (loss):

Basic

$ 0.84 $ (2.54 )

Diluted

$ 0.84 $ (2.54 )

Average common shares outstanding:

Basic

9,349,266 9,236,314

Diluted

9,354,161 9,236,314

Cash dividends declared

$ 0.00 $ 0.15

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)

Three months ended

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

Jun 30

2020

Interest income:

Interest and fees on loans:

Taxable

$ 11,529 $ 10,348 $ 11,403 $ 11,265 $ 10,602

Tax-exempt

182 176 179 223 236

Interest and dividends on investment securities available-for-sale:

Taxable

553 494 411 360 396

Tax-exempt

144 152 113 71 68

Interest on interest-bearing deposits in other banks

15 9 8 11 12

Total interest income

12,423 11,179 12,114 11,930 11,314

Interest expense:

Interest on deposits

822 923 1,035 1,200 1,395

Interest on short-term borrowings

23

Interest on long-term debt

585 646 684 304 225

Total interest expense

1,407 1,569 1,719 1,504 1,643

Net interest income

11,016 9,610 10,395 10,426 9,671

(Recovery of ) provision for loan losses

(735 ) 626 1,844 2,012

Net interest income after (recovery of) provision for loan losses

11,751 9,610 9,769 8,582 7,659

Noninterest income:

Service charges, fees and commissions

2,755 1,474 642 1,099 1,011

Commissions and fees on fiduciary activities

294 260 292 246 210

Wealth management income

238 214 240 220 196

Mortgage banking income

185 151 333 401 391

Life insurance investment income

196 178 177 192 193

Net gain on sale of investment securities available-for-sale

27 246

Total noninterest income

3,695 2,523 1,684 2,158 2,001

Noninterest expense:

Salaries and employee benefits expense

5,494 4,467 4,755 5,411 4,985

Net occupancy and equipment expense

854 1,190 1,465 1,428 1,068

Amortization of intangible assets

132 132 309 170 169

Goodwill impairment

24,754

Net cost (benefit) of operation of other real estate owned

7 (29 ) 15 51

Other expenses

3,037 2,627 3,020 2,918 2,978

Total noninterest expense

9,524 8,387 9,564 9,978 33,954

Income (loss) before income taxes

5,922 3,746 1,889 762 (24,294 )

Income tax expense (benefit)

1,142 686 306 67 (172 )

Net income (loss)

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Other comprehensive income (loss):

Unrealized gain (loss) on investment securities available-for-sale

1,279 $ (3,029 ) $ 94 $ 114 $ 840

Reclassification adjustment for gain included in net income

(27 ) (246 )

Change in pension liability

166

Change in cash flow hedge

(284 ) 657 161 49 (38 )

Income tax expense (benefit) related to other comprehensive income (loss)

203 (550 ) 88 35 168

Other comprehensive income (loss), net of income taxes

765 (2,068 ) 333 128 634

Comprehensive income (loss)

$ 5,545 $ 992 $ 1,916 $ 823 $ (23,488 )

Per common share data:

Net income (loss):

Basic

$ 0.51 $ 0.33 $ 0.17 $ 0.08 $ (2.61 )

Diluted

$ 0.51 $ 0.33 $ 0.17 $ 0.08 $ (2.61 )

Average common shares outstanding:

Basic

9,357,153 9,341,291 9,287,196 9,273,666 9,249,184

Diluted

9,366,651 9,341,533 9,287,196 9,273,666 9,249,184

Cash dividends declared

$ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.08

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)

Three months ended

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

Jun 30

2020

Net interest income:

Interest income

Loans, net:

Taxable

$ 11,529 $ 10,348 $ 11,403 $ 11,265 $ 10,602

Tax-exempt

230 223 227 282 299

Total loans, net

11,759 10,571 11,630 11,547 10,901

Investments:

Taxable

553 494 411 360 396

Tax-exempt

183 192 143 90 86

Total investments

736 686 554 450 482

Interest on interest-bearing balances in other banks

15 9 8 11 12

Total interest income

12,510 11,266 12,192 12,008 11,395

Interest expense:

Deposits

822 923 1,035 1,200 1,395

Short-term borrowings

23

Long-term debt

585 646 684 304 225

Total interest expense

1,407 1,569 1,719 1,504 1,643

Net interest income

$ 11,103 $ 9,697 $ 10,473 $ 10,504 $ 9,752

Yields on earning assets:

Loans, net:

Taxable

4.65 % 3.83 % 4.00 % 3.95 % 4.10 %

Tax-exempt

2.98 % 3.36 % 3.29 % 3.57 % 3.46 %

Total loans, net

4.60 % 3.82 % 3.98 % 3.94 % 4.08 %

Investments:

Taxable

2.11 % 2.19 % 2.04 % 2.17 % 2.74 %

Tax-exempt

1.65 % 1.88 % 2.98 % 3.31 % 4.10 %

Total investments

1.97 % 2.09 % 2.22 % 2.33 % 2.91 %

Interest-bearing balances with banks

0.09 % 0.10 % 0.09 % 0.11 % 0.10 %

Total earning assets

4.04 % 3.54 % 3.74 % 3.73 % 3.85 %

Costs of interest-bearing liabilities:

Deposits

0.38 % 0.43 % 0.49 % 0.56 % 0.67 %

Short-term borrowings

0.33 %

Long-term debt

1.87 % 1.25 % 1.15 % 0.56 % 0.74 %

Total interest-bearing liabilities

0.56 % 0.59 % 0.63 % 0.56 % 0.67 %

Net interest spread

3.48 % 2.95 % 3.11 % 3.17 % 3.18 %

Net interest margin

3.59 % 3.04 % 3.21 % 3.26 % 3.29 %

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)

At period end

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

Jun 30

2020

Assets:

Cash and due from banks

$ 9,849 $ 9,496 $ 13,511 $ 10,646 $ 10,195

Interest-bearing balances in other banks

47,659 53,668 36,270 21,312 33,033

Investment securities available-for-sale

148,048 155,863 103,695 98,846 74,134

Loans held for sale

180 2,502 4,338 4,547 4,252

Loans, net

948,740 1,091,824 1,139,239 1,163,442 1,165,453

Less: allowance for loan losses

10,867 12,140 12,200 11,624 9,736

Net loans

937,873 1,079,684 1,127,039 1,151,818 1,155,717

Premises and equipment, net

17,448 17,991 18,147 18,419 18,668

Accrued interest receivable

3,532 4,189 4,216 3,218 1,826

Goodwill

Other intangible assets, net

1,654 1,786 1,918 2,227 2,397

Other assets

48,498 49,661 48,420 45,739 46,578

Total assets

$ 1,214,741 $ 1,374,840 $ 1,357,554 $ 1,356,772 $ 1,346,800

Liabilities:

Deposits:

Noninterest-bearing

$ 183,893 $ 197,360 $ 173,600 $ 178,168 $ 173,567

Interest-bearing

860,622 883,568 841,860 853,145 849,586

Total deposits

1,044,515 1,080,928 1,015,460 1,031,313 1,023,153

Short-term borrowings

Long-term debt

51,956 180,644 228,765 217,031 217,010

Accrued interest payable

504 1,347 1,038 591 457

Other liabilities

13,401 13,298 14,859 12,413 11,728

Total liabilities

1,110,376 1,276,217 1,260,122 1,261,348 1,252,348

Stockholders' equity:

Common stock

103,058 102,861 102,662 102,672 102,552

Capital surplus

292 292 292 190 161

Retained earnings (accumulated deficit)

1,383 (3,397 ) (6,457 ) (8,040 ) (8,735 )

Accumulated other comprehensive income (loss)

(368 ) (1,133 ) 935 602 474

Total stockholders' equity

104,365 98,623 97,432 95,424 94,452

Total liabilities and stockholders' equity

$ 1,214,741 $ 1,374,840 $ 1,357,554 $ 1,356,772 $ 1,346,800

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)

Average quarterly balances

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

Jun 30

2020

Assets:

Loans, net:

Taxable

$ 995,457 $ 1,095,594 $ 1,134,149 $ 1,134,625 $ 1,041,161

Tax-exempt

30,950 26,952 27,425 31,451 34,723

Total loans, net

1,026,407 1,122,546 1,161,574 1,166,076 1,075,884

Investments:

Taxable

105,196 91,549 79,996 66,049 58,230

Tax-exempt

44,528 41,443 19,102 10,812 8,442

Total investments

149,724 132,992 99,098 76,861 66,672

Interest-bearing balances with banks

65,411 36,101 35,381 38,334 48,174

Total earning assets

1,241,542 1,291,639 1,296,053 1,281,271 1,190,730

Other assets

71,971 72,586 70,815 73,079 102,097

Total assets

$ 1,313,513 $ 1,364,225 $ 1,366,868 $ 1,354,350 $ 1,292,827

Liabilities and stockholders' equity:

Deposits:

Noninterest-bearing

$ 194,466 $ 176,895 $ 173,629 $ 175,402 $ 171,500

Interest-bearing

878,945 863,765 847,124 853,782 837,512

Total deposits

1,073,411 1,040,660 1,020,753 1,029,184 1,009,012

Short-term borrowings

28,417

Long-term debt

125,441 209,781 236,043 217,021 122,875

Other liabilities

13,093 14,861 13,389 12,135 13,062

Total liabilities

1,211,945 1,265,302 1,270,185 1,258,340 1,173,366

Stockholders' equity

101,568 98,923 96,683 96,010 119,461

Total liabilities and stockholders' equity

$ 1,313,513 $ 1,364,225 $ 1,366,868 $ 1,354,350 $ 1,292,827

Riverview Financial Corporation

Asset Quality Data

(In thousands)

Jun 30
2021
Mar 31
2021
Dec 31
2020
Sep 30
2020
Jun 30
2020

At quarter end:

Nonperforming assets:

Nonaccrual loans

$ 2,396 $ 2,828 $ 1,421 $ 3,225 $ 3,241

Accruing restructured loans

9,276 9,939 9,963 9,648 9,592

Accruing loans past due 90 days or more

91 165 156 108 183

Foreclosed assets

219 219 422 25 363

Total nonperforming assets

$ 11,982 $ 13,151 $ 11,962 $ 13,006 $ 13,379

Three months ended:

Allowance for loan losses:

Beginning balance

$ 12,140 $ 12,200 $ 11,624 $ 9,736 $ 8,251

Charge-offs

611 94 100 42 574

Recoveries

73 34 50 86 47

(Recovery of) provision for loan losses

(735 ) 626 1,844 2,012

Ending balance

$ 10,867 $ 12,140 $ 12,200 $ 11,624 $ 9,736

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Three months ended:

Jun 30

2021

Mar 31

2021

Dec 31

2020

Sep 30

2020

Jun 30

2020

Core net income (loss) per common share:

Net income (loss)

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Adjustments:

Less: Gain on sale of investment securities, net of tax

22 194

Add: Acquisition related expenses, net of tax

206

Add: Goodwill impairment, net of tax

24,581

Net income - Core

$ 4,964 $ 2,866 $ 1,583 $ 695 $ 459

Average common shares outstanding

9,357,153 9,341,291 9,287,196 9,273,666 9,249,184

Core net income per common share

$ 0.53 $ 0.31 $ 0.17 $ 0.07 $ 0.05

Tangible book value:

Total stockholders' equity

$ 104,365 $ 98,623 $ 97,432 $ 95,424 $ 94,452

Less: Goodwill

Less: Other intangible assets, net

1,654 1,786 1,918 2,227 2,397

Total tangible stockholders' equity

$ 102,711 $ 96,837 $ 95,514 $ 93,197 $ 92,055

Common shares outstanding

9,361,967 9,348,831 9,306,442 9,279,503 9,263,697

Tangible book value per share

$ 10.97 $ 10.36 $ 10.26 $ 10.04 $ 9.94

Tangible stockholders' equity to tangible assets:

Total stockholders' equity

$ 104,365 $ 98,623 $ 97,432 $ 95,424 $ 94,452

Less: Goodwill

Less: Other intangible assets, net

1,654 1,786 1,918 2,227 2,397

Total tangible stockholders' equity

$ 102,711 $ 96,837 $ 95,514 $ 93,197 $ 92,055

Total assets

$ 1,214,741 $ 1,374,840 $ 1,357,554 $ 1,356,772 $ 1,346,800

Less: Goodwill

Less: Other intangible assets, net

1,654 1,786 1,918 2,227 2,397

Total tangible assets

$ 1,213,087 $ 1,373,054 $ 1,355,636 $ 1,354,545 $ 1,344,403

Tangible stockholders' equity to tangible assets

8.47 % 7.05 % 7.05 % 6.88 % 6.85 %

Core return on average stockholders' equity:

Net income (loss) GAAP

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Adjustments:

Less: Gain on sale of investment securities, net of tax

22 194

Add: Acquisition related expenses, net of tax

206

Add: Goodwill impairment, net of tax

24,581

Net income - Core

$ 4,964 $ 2,866 $ 1,583 $ 695 $ 459

Average stockholders' equity

$ 101,568 $ 98,923 $ 96,683 $ 96,010 $ 119,461

Core return on average stockholders' equity

19.60 % 11.75 % 6.51 % 2.88 % 1.55 %

Return on average tangible equity:

Net income (loss) GAAP

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Average stockholders' equity

$ 101,568 $ 98,923 $ 96,683 $ 96,010 $ 119,461

Less: average intangibles

1,718 1,849 2,116 2,310 26,961

Average tangible stockholders' equity

$ 99,850 $ 97,074 $ 94,567 $ 93,700 $ 92,500

Return on average tangible stockholders' equity

19.20 % 12.78 % 6.66 % 2.95 % (104.88 )%

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Three months ended: 2021 2021 2020 2020 2020

Core return on average tangible stockholders' equity:

Net income (loss) GAAP

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Adjustments:

Less: Gain on sale of investment securities, net of tax

22 194

Add: Acquisition related expenses, net of tax

206

Add: Goodwill impairment, net of tax

24,581

Net income - Core

$ 4,964 $ 2,866 $ 1,583 $ 695 $ 459

Average stockholders' equity

$ 101,568 $ 98,923 $ 96,683 $ 96,010 $ 119,461

Less: average intangibles

1,718 1,849 2,116 2,310 26,961

Average tangible stockholders' equity

$ 99,850 $ 97,074 $ 94,567 $ 93,700 $ 92,500

Core return on average tangible stockholders' equity

19.94 % 11.97 % 6.66 % 2.95 % 2.00 %

Core return on average assets:

Net income (loss) GAAP

$ 4,780 $ 3,060 $ 1,583 $ 695 $ (24,122 )

Adjustments:

Less: Gain on sale of investment securities, net of tax

22 194

Add: Acquisition related expenses, net of tax

206

Add: Goodwill impairment, net of tax

24,581

Net income - Core

$ 4,964 $ 2,866 $ 1,583 $ 695 $ 459

Average assets

$ 1,313,513 $ 1,364,225 $ 1,366,868 $ 1,354,350 $ 1,292,827

Core return on average assets

1.52 % 0.85 % 0.46 % 0.20 % 0.14 %

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Six months ended:

Jun 30

2021

Jun 30

2020

Core net income per common share:

Net income (loss)

$ 7,840 $ (23,489 )

Adjustments:

Less: Gains on sale of investment securities, net of tax

216 644

Add: Acquisition related expenses, net of tax

206

Add: Goodwill impairment, net of tax

24,581

Net income - core

$ 7,830 $ 448

Average common shares outstanding

9,349,266 9,236,314

Core net income per common share

$ 0.84 $ 0.05

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Riverview Financial Corp. published this content on 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 13:21:06 UTC.