{"id":515433,"date":"2021-07-20T19:18:37","date_gmt":"2021-07-20T23:18:37","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/riverview-financial-corporation-reports-record-second-quarter-and-year-to-date-earnings-for-2021\/"},"modified":"2021-07-20T19:18:37","modified_gmt":"2021-07-20T23:18:37","slug":"riverview-financial-corporation-reports-record-second-quarter-and-year-to-date-earnings-for-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/riverview-financial-corporation-reports-record-second-quarter-and-year-to-date-earnings-for-2021\/","title":{"rendered":"Riverview Financial Corporation Reports Record Second Quarter And Year To Date Earnings For 2021"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n HARRISBURG, Pa.<\/span>, July 20, 2021<\/span> \/PRNewswire\/ — Riverview Financial Corporation\u00a0(the “Company” or “Riverview<\/span>“)\u00a0(NASDAQ: RIVE), the holding company for Riverview Bank (the “Bank”), today reported record net income of $4.8 million<\/span>, or $0<\/span>.51\u00a0per basic and diluted weighted average common share,\u00a0for the second quarter of 2021, compared to a net loss of $24.1 million<\/span>, or $(2.61)\u00a0per basic and diluted weighted average common share,\u00a0for the second quarter of 2020.\u00a0For the six months ended June 30, 2021<\/span>, Riverview<\/span> reported record net income of $7.8 million<\/span>, or $0.84<\/span> per basic and diluted weighted average common share, compared to a net loss of $23.5 million<\/span>, or $(2.54)<\/span> per basic and diluted weighted average common share, for the same period last year. <\/p>\n

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\n \"(PRNewsfoto\/Riverview
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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<\/span> of the outstanding PPP loans at December 31, 2020<\/span>, were forgiven in the first half of 2021. Net interest income generated from PPP loans totaled $2.7 million<\/span> in the second quarter of 2021 and $4.1 million<\/span> in the first half of 2021. On May 24, 2021<\/span>, the Company announced the completion of the sale of the branch office located in Meyersdale<\/span> and related liabilities of the Meyersdale<\/span> and Somerset branches, resulting in the recognition of $1.6 million<\/span> of noninterest income in the form of a deposit premium. The $735 thousand<\/span> 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<\/span> 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. <\/p>\n

The major factors causing the reported net losses of $24.1 million<\/span> for the three months and $23.5 million<\/span> for the six months ended June 30, 2020<\/span> 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<\/span> 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<\/span>, the provisions for loan losses totaled $2.0 million<\/span> and $3.8 million<\/span>, respectively.\u00a0<\/p>\n

On June 30, 2021<\/span>, Riverview<\/span> entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Mid Penn Bancorp, Inc. (“Mid Penn”) pursuant to which Riverview<\/span> 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<\/span>, 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<\/span>. Subject to customary and required regulatory and shareholder approval, it is anticipated the Merger will be consummated in the fourth quarter of 2021.\u00a0<\/p>\n

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America<\/span> (“GAAP”), Riverview<\/span> 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<\/span> 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<\/span> uses may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.<\/p>\n

\n HIGHLIGHTS<\/b>\n <\/p>\n