/EINPresswire.com/ -- HARRISBURG, PA--(Marketwired - Apr 28, 2017) - Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the quarter ended March 31, 2017. Riverview reported a net loss of $567 thousand or $(0.12) per basic and diluted weighted average common share for the first quarter of 2017, compared to net income of $753 thousand or $0.23 per basic and diluted weighted average common share, for the comparable period of 2016. The net loss recognized in the first quarter of 2017 was a direct result of incurring certain costs involved in implementing strategic initiatives to enhance shareholder value through asset growth provided by organic and inorganic opportunities. On January 20, 2017, Riverview announced the successful completion of a $17.0 million private placement of common and preferred securities. The additional capital afforded Riverview the ability to significantly grow its loan portfolio through hiring multiple teams of experienced and established lenders to serve new and existing markets. More notably the capital raise allowed Riverview to announce on April 20, 2017, the execution of a definitive business combination agreement to form a strategic partnership with CBT Financial Corp. This action will form a combined community banking franchise with approximately $1.2 billion of assets and will provide enhanced products and services through 33 banking locations covering 12 Pennsylvania counties. 

"We are pleased with the success from the addition of our new lending teams growing loans by more than $55 million in the first quarter of 2017 and are extremely excited for shareholders, customers and communities with the announcement of the merger of CBT Financial Corp. with and into Riverview," stated Kirk D. Fox, Chief Executive Officer. "We are confident that the shareholders of both entities will recognize the exceptional value created through the combination of two community banks having long established histories of providing excellent service and extensive community support to Central and Southwestern Pennsylvania. This move is a logical step in our announced strategy to expand throughout Central Pennsylvania and into markets with attractive demographics and long-term growth potential. In addition, CBT Financial Corp. has an established track record of profitability, rooted in very strong local relationships and excellent customer service," concluded Fox. 

HIGHLIGHTS

• For the first quarter of 2017, loans, net grew $55.1 million or 54.6% annualized.
  
  
• Deposits increased $43.9 million or 39.3% annualized to $496.5 million at the end of the first quarter of 2017 from $452.6 million at year-end 2016.
  
  
• Stockholders' equity increased $15.2 million to $57.1 million or 9.5% of total assets at March 31, 2017 as a result of the capital offering.
  
  
• Asset quality improved as nonperforming assets as a percentage of loans, net and other real estate owned declined to 1.74% at March 31, 2017 compared to 1.99% at December 31, 2016 and 2.44% at March 31, 2016.
  
  

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended March 31, decreased $131 thousand to $4,487 thousand in 2017 from $4,618 thousand in 2016. The decrease in tax equivalent net interest income was primarily attributable to an unfavorable rate variance caused by a 22 basis point decline in the tax-equivalent net interest margin offset partially by a favorable volume variance from an increase in average interest earning assets and a decrease in average interest bearing liabilities. The tax-equivalent net interest margin for the three months ended March 31, 2017, declined to 3.57% from 3.79% for the comparable period of 2016. The tax-equivalent yield on the loan portfolio decreased to 4.30% in 2017 compared to 4.50% in 2016. Loans, net averaged $420.1 million in 2017 and $407.3 million in 2016. The majority of loan originations accounting for the net loan growth of $55.1 million in the first quarter of 2017 were closed at the end of the quarter. For the three months ended March 31, the tax-equivalent yield on total investments increased to 3.45% in 2017 from 3.36% in 2016. Average investments totaled $75.0 million in 2017 and $73.0 million in 2016. The cost of funds increased to 0.60% in 2017 from 0.53% in 2016. Average interest-bearing liabilities decreased to $423.8 million in 2017 from $427.4 million in 2016.

The provision for loan losses totaled $605 thousand for the quarter ended March 31, 2017, compared to $99 thousand in 2016. The increase in the provision for loan losses in 2017 was primarily influenced by significant loan growth originated through the successful hiring of teams of lenders. 

For the quarter ended March 31, noninterest income totaled $779 thousand in 2017, an increase of $142 thousand from $637 thousand in 2016. Wealth management income grew $100 thousand or 63.3% due to revenues from businesses acquired in 2016. In addition, service charges, fees and commissions and trust income improved $39 thousand and $11 thousand, respectively, comparing the first quarters of 2017 and 2016. The recognition of a sign on bonus from a credit card vendor was primarily responsible for the increase in service charges, fees and commissions. Mortgage banking income in 2017 remained at the amount recognized during the first quarter of last year despite recent increases in interest rates. Income of bank owned life insurance declined to $73 thousand in the first quarter of 2017 compared to $82 thousand for the comparable quarter of 2016.

Noninterest expense increased $1,048 thousand or 25.5%, to $5,163 thousand for the three months ended March 31, 2017, from $4,115 thousand for the same period last year. The majority of the increase in salaries and employee benefit expense was a result of implementing the lending team lift out initiative and related costs, as well as the opening of a new, full service office in Temple, Berks County, Pennsylvania in the first quarter of 2017. Additions to leased facilities for this newly opened community banking office along with offices to support the lending teams were primarily responsible for the $93 thousand or 16.8% increase in occupancy and equipment costs. The majority of the $188 thousand increase in other expenses comparing the first quarters of 2017 and 2016 was a result of incurring professional fees related to the announced business combination with CBT Financial Corp.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $600.4 million, $464.5 million, and $496.5 million, respectively, at March 31, 2017. Loans, net increased $55.1 million or 13.5% comparing the end of the first quarter of 2017 to year end 2016 with commercial real estate loans being responsible for the majority of the improvement. Total investments were $72.7 million at March 31, 2017, compared to $73.1 million at December 31, 2016. Total deposits increased $43.9 million or 9.7% in first three months of 2017. Noninterest-bearing deposits increased $5.2 million, while interest-bearing deposits increased $38.7 million. An improvement in the volume of money market accounts was primarily responsible for the increase in interest-bearing deposits.

Stockholders' equity totaled $57.1 million or $12.45 per common share at March 31, 2017, and $41.9 million or $12.95 per common share at December 31, 2016. The increase in equity in the first quarter of 2017 was a result of the completion of the sale of approximately $17.0 million in common and preferred equity, before expenses, to accredited investors and qualified institutional buyers through the private placement of 269,885 shares of common stock and 1,348,809 shares of a newly created series of convertible, perpetual preferred stock. Tangible stockholders' equity per common share decreased to $10.65 per share at March 31, 2017, compared to $10.84 per share at year-end 2016. Dividends declared for the three months ended March 31, 2017 amounted to $0.14 per share. The annualized dividend yield based on the closing price on March 31, 2017 of $11.95 per share was 4.6%.

ASSET QUALITY REVIEW

Nonperforming assets were $8.1 million or 1.7% of loans, net and foreclosed assets at March 31, 2017, an improvement from $8.2 million or 2.0% at December 31, 2016, and $9.8 million or 2.4% at March 31, 2016. Adjusting for accruing restructured loans, nonperforming assets were $2.5 million or 0.5% of loans, net and foreclosed assets at March 31, 2017, $2.4 million or 0.6% at December 31, 2016, and $3.2 million or 0.8% at March 31, 2016. The allowance for loan losses equaled $4.3 million or 0.93% of loans, net at March 31, 2017, compared to $3.7 million or 0.91% of loans, net at December 31, 2016, and $3.7 million or 0.93% of loans, net, at March 31, 2016. Loans charged-off, net of recoveries, for the three months ended March 31, 2017, equaled $8 thousand or 0.01% of average loans, compared to $747 thousand or 0.74% of average loans for the same period last year.

Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, and Riverview Wealth Management. An independent community bank, Riverview Bank serves its Central Pennsylvania market area of Berks, Cumberland, Dauphin, Northumberland, Perry, Schuylkill Counties, as well as its Southwestern Pennsylvania market area of Bedford, Cambria, Somerset and Westmoreland Counties through seventeen community banking offices and three limited purpose offices. Each 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 Wealth Management provides trust and investment advisory services to the general public through offices in Lebanon and Schuylkill Counties. The Company'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 Investor Relations site can be accessed at https://www.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' operations, pricing, products and services and other factors that may be described in Riverview' 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.

In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an acquired or combined business may cause reputational harm to Riverview following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.

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 for the three months ended March 31, 2017 and 2016, contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale and acquisition related expenses. 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)
		March 31		Dec 31		Sept 30		Jun 30		March 31
		2017		2016		2016		2016		2016
Key performance data:
Per common share data:
Net income (loss)		$ (0.12)		$ 0.15		$ 0.30		$ 0.27		$ 0.23
Core net income (loss) (1)		$ (0.10)		$ 0.15		$ 0.27		$ 0.23		$ 0.25
Cash dividends declared		$ 0.14		$ 0.14		$ 0.14		$ 0.14		$ 0.14
Book value		$12.45		$12.95		$13.67		$13.57		$13.40
Tangible book value (1)		$10.65		$10.84		$11.54		$11.40		$11.47
Market value:
	High	$12.20		$11.78		$12.20		$12.10		$13.20
	Low	$11.46		$11.05		$11.00		$11.00		$11.00
	Closing	$11.95		$11.60		$11.40		$12.10		$11.10
Market capitalization		$42,044		$37,559		$36,816		$38,973		$35,597
Common shares outstanding		3,518,351		3,237,859		3,229,467		3,220,934		3,206,927
Selected ratios:
Return on average stockholders' equity		(4.20)%		4.50%		8.73%		7.92%		7.08%
Core return on average stockholders' equity (1)		(3.70)%		4.50%		7.86%		6.85%		7.48%
Return on average tangible stockholders' equity (1)		(4.79)%		5.34%		10.36%		9.29%		8.28%
Core return on average tangible stockholders' equity (1)		(4.22)%		5.34%		9.33%		8.03%		8.76%
Return on average assets		(0.41)%		0.36%		0.73%		0.64%		0.56%
Core return on average assets (1)		(0.36)%		0.36%		0.66%		0.56%		0.59%
Stockholders' equity to total assets		9.51%		7.72%		8.38%		8.29%		7.95%
Efficiency ratio (2)		94.91%		82.02%		74.26%		79.80%		76.83%
Nonperforming assets to loans, net, and foreclosed assets		1.74%		1.99%		2.15%		2.35%		2.44%
Net charge-offs to average loans, net		0.01%		0.07%		0.00%		0.27%		0.74%
Allowance for loan losses to loans, net		0.93%		0.91%		0.91%		0.91%		0.93%
Earning assets yield (FTE) (3)		4.08%		4.19%		4.43%		4.22%		4.25%
Cost of funds		0.60%		0.51%		0.51%		0.54%		0.53%
Net interest spread (FTE) (3)		3.48%		3.68%		3.92%		3.68%		3.72%
Net interest margin (FTE) (3)		3.57%		3.76%		3.99%		3.75%		3.79%

(1)	See Reconciliation of Non-GAAP financial measures.
(2)	Total noninterest expense less amortization of intangible assets 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 of 34%.

Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended			Mar 31		Mar 31
			2017		2016
Interest income:
Interest and fees on loans:
	Taxable		$ 4,285		$ 4,427
	Tax-exempt		108		86
Interest and dividends on investment securities:
	Taxable		564		401
	Tax-exempt		47		136
	Dividends		3		3
Interest on interest-bearing deposits in other banks			23		15
Interest on federal funds sold			6		1
		Total interest income	5,036		5,069
Interest expense:
Interest on deposits			532		467
Interest on short-term borrowings			22		43
Interest on long-term debt			75		55
		Total interest expense	629		565
		Net interest income	4,407		4,504
Provision for loan losses			605		99
		Net interest income after provision for loan losses	3,802		4,405
Noninterest income:
Service charges, fees and commissions			337		298
Commissions and fees on fiduciary activities			30		19
Wealth management income			258		158
Mortgage banking income			82		82
Life insurance investment income			73		82
Net gain (loss) on sale of investment securities available-for-sale			(1)		(2)
Total noninterest income			779		637
Noninterest expense:
Salaries and employee benefits expense			2,836		2,151
Net occupancy and equipment expense			646		553
Net cost of operation of other real estate owned			164		76
Amortization of intangible assets			36		42
Other expenses			1,481		1,293
		Total noninterest expense	5,163		4,115
Income (loss) before income taxes			(582)		927
Provision for income tax expense (benefit)			(15)		174
		Net income (loss)	(567)		753
Dividends on preferred stock			(185)
		Net income (loss) available to common stockholders	(752)		753
Undistributed loss (income) allocated to preferred stockholders			347
		Distributed and undistributed income (loss) allocated to common stockholders	$ (405)		$ 753
Other comprehensive income (loss):
Unrealized (gain) loss on investment securities available-for-sale			$ 512		$ 507
Reclassification adjustment for (gain) loss included in net income			1		2
Change in pension liability
Income tax expense (benefit) related to other comprehensive income			174		173
		Other comprehensive income (loss), net of income taxes	339		336
		Comprehensive income (loss)	$ (228)		$ 1,089
Per common share data:
Net income (loss):
		Basic	$ (0.12)		$ 0.23
		Diluted	$ (0.12)		$ 0.23
Average common shares outstanding:
		Basic	3,454,704		3,206,501
		Diluted	3,480,887		3,222,005
Cash dividends declared			$ 0.14		$ 0.14

			Riverview Financial Corporation
			Consolidated Statements of Income
			(In thousands, except per share data)
Three months ended			March 31		Dec 31		Sept 30		June 30		March 31
			2017		2016		2016		2016		2016
Interest income:
Interest and fees on loans:
	Taxable		$ 4,285		$ 4,203		$ 4,598		$ 4,337		$ 4,427
	Tax-exempt		108		190		87		88		86
Interest and dividends on investment securities available-for-sale:
	Taxable		564		556		539		435		401
	Tax-exempt		47		46		53		91		136
	Dividends		3				1		4		3
Interest on interest-bearing deposits in other banks			23		12		13		13		15
Interest on federal funds sold			6						1		1
		Total interest income	5,036		5,007		5,291		4,969		5,069
Interest expense:
Interest on deposits			532		418		447		461		467
Interest on short-term borrowings			22		25		3		13		43
Interest on long-term debt			75		81		77		82		55
		Total interest expense	629		524		527		556		565
		Net interest income	4,407		4,483		4,764		4,413		4,504
Provision for loan losses			605		169		29		156		99
		Net interest income after provision for loan losses	3,802		4,314		4,735		4,257		4,405
Noninterest income:
Service charges, fees and commissions			337		345		315		320		298
Commissions and fees on fiduciary activities			30		30		34		35		19
Wealth management income			258		294		194		179		158
Mortgage banking income			82		196		210		109		82
Life insurance investment income			73		69		118		76		82
Net gain (loss) on sale of investment securities available-for-sale			(1)				152		334		(2)
Total noninterest income			779		934		1,023		1,053		637
Noninterest expense:
Salaries and employee benefits expense			2,836		2,650		2,334		2,126		2,151
Net occupancy and equipment expense			646		548		538		526		553
Amortization of intangible assets			164		93		95		76		76
Net cost of operation of other real estate owned			36		117		83		89		42
Other expenses			1,481		1,228		1,283		1,428		1,293
Total noninterest expense			5,163		4,636		4,333		4,245		4,115
Income (loss) before income taxes			(582)		612		1,425		1,065		927
Income tax expense (benefit)			(15)		124		454		210		174
Net income (loss)			(567)		488		971		855		753
		Dividends on preferred stock	(185)
		Net income (loss) available to common stockholders	(752)		488		971		855		753
Undistributed loss (income) allocated to preferred stockholders			347
		Distributed and undistributed income (loss) allocated to common stockholders	$ (405)		$ 488		$ 971		$ 855		$ 753
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available-for-sale			$ 512		$(3,668)		$ (148)		$ 581		$ 507
Reclassification adjustment for (gain) loss included in net income			1				(152)		(334)		2
Change in pension liability					47
Income tax expense (benefit) related to other comprehensive income (loss)			174		(1,231)		(102)		84		173
Other comprehensive income (loss), net of income taxes			339		(2,390)		(198)		163		336
		Comprehensive income (loss)	$ (228)		$(1,902)		$ 773		$ 1,018		$ 1,089
Per common share data:
Net income (loss):
		Basic	$ (0.12)		$ 0.15		$ 0.30		$ 0.27		$ 0.23
		Diluted	$ (0.12)		$ 0.15		$ 0.30		$ 0.26		$ 0.23
Average common shares outstanding:
		Basic	3,454,704		3,232,359		3,224,053		3,214,248		3,206,501
		Diluted	3,480,887		3,254,719		3,244,689		3,245,868		3,222,005
Cash dividends declared			$ 0.14		$ 0.14		$ 0.14		$ 0.14		$ 0.14

Riverview Financial Corporation
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)
Three months ended			Mar 31		Dec 31		Sept 30		June 30		Mar 31
			2017		2016		2016		2016		2016
Net interest income:
Interest income
Loans, net:
	Taxable		$ 4,285		$ 4,203		$ 4,598		$ 4,337		$ 4,427
	Tax-exempt		164		288		132		133		130
		Total loans, net	4,449		4,491		4,730		4,470		4,557
Investments:
	Taxable		567		556		540		439		404
	Tax-exempt		71		70		80		138		206
		Total investments	638		626		620		577		610
Interest on interest-bearing balances in other banks			23		12		13		13		15
Federal funds sold			6						1		1
		Total interest income	5,116		5,129		5,363		5,061		5,183
Interest expense:
	Deposits		532		418		447		461		467
	Short-term borrowings		22		25		3		13		43
	Long-term debt		75		81		77		82		55
		Total interest expense	629		524		527		556		565
		Net interest income	$ 4,487		$ 4,605		$ 4,836		$ 4,505		$ 4,618
Loans, net:
	Taxable		4.30%		4.26%		4.71%		4.49%		4.51%
	Tax-exempt		4.06%		9.16%		4.50%		4.30%		4.11%
		Total loans, net	4.30%		4.42%		4.70%		4.49%		4.50%
Investments:
	Taxable		3.32%		3.28%		3.30%		2.97%		3.02%
	Tax-exempt		5.01%		4.84%		4.88%		4.55%		4.31%
		Total investments	3.45%		3.40%		3.44%		3.24%		3.36%
Interest-bearing balances with banks			0.87%		0.49%		0.55%		0.54%		0.67%
Federal funds sold			0.74%						0.43%		0.50%
		Total earning assets	4.08%		4.19%		4.43%		4.22%		4.25%
Interest expense:
	Deposits		0.54%		0.43%		0.45%		0.47%		0.48%
	Short-term borrowings		0.86%		0.65%		0.56%		0.55%		0.58%
	Long-term debt		2.73%		2.88%		2.71%		2.90%		2.34%
		Total interest-bearing liabilities	0.60%		0.51%		0.51%		0.54%		0.53%
		Net interest spread	3.48%		3.68%		3.92%		3.68%		3.72%
		Net interest margin	3.57%		3.76%		3.99%		3.75%		3.79%

Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
			Mar 31		Dec 31		Sept 30		June 30		Mar 31
At period end			2017		2016		2016		2016		2016
Assets:
Cash and due from banks			$ 10,852		$ 7,783		$ 7,066		$ 6,193		$ 13,145
Interest-bearing balances in other banks			11,552		11,337		9,051		8,606		12,194
Federal funds sold
Investment securities available-for-sale			72,741		73,113		72,371		74,253		73,317
Loans held for sale			522		652		820		318		594
Loans, net			464,481		409,343		398,193		398,493		401,482
Less: allowance for loan losses			4,329		3,732		3,637		3,609		3,717
Net loans			460,152		405,611		394,556		394,884		397,765
Premises and equipment, net			12,116		12,201		12,287		12,236		12,349
Accrued interest receivable			1,881		1,726		1,701		1,586		1,610
Goodwill			5,079		5,408		5,408		5,408		4,757
Other intangible assets, net			1,241		1,405		1,497		1,593		1,425
Other assets			24,237		23,812		22,321		22,236		23,759
		Total assets	$600,373		$543,048		$527,078		$527,313		$540,915
Liabilities:
Deposits:
	Noninterest-bearing		$ 79,127		$ 73,932		$ 71,329		$ 70,230		$ 69,935
	Interest-bearing		417,380		378,628		387,664		391,217		385,569
		Total deposits	496,507		452,560		458,993		461,447		455,504
Short-term borrowings			30,000		31,500		6,000		4,069		25,000
Long-term debt			11,073		11,154		11,257		11,335		11,400
Accrued interest payable			203		192		220		221		267
Other liabilities			5,499		5,722		6,447		6,520		5,766
		Total liabilities	543,282		501,128		482,917		483,592		497,937
Stockholders' equity:
Preferred stock			13,283
Common stock			31,833		29,052		28,955		28,855		28,698
Capital surplus			224		220		211		201		191
Retained earnings			13,609		14,845		14,802		14,274		13,861
Accumulated other comprehensive income (loss)			(1,858)		(2,197)		193		391		228
		Total stockholders' equity	57,091		41,920		44,161		43,721		42,978
		Total liabilities and stockholders' equity	$600,373		$543,048		$527,078		$527,313		$540,915

Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
			Mar 31		Dec 31		Sept 30		June 30		Mar 31
Average quarterly balances			2017		2016		2016		2016		2016
Assets:
Loans, net:
	Taxable		$403,684		$392,085		$388,752		$388,062		$394,587
	Tax-exempt		16,396		12,510		11,675		12,446		12,714
		Total loans, net	420,080		404,595		400,427		400,508		407,301
Investments:
	Taxable		69,253		67,423		65,126		59,354		53,747
	Tax-exempt		5,748		5,750		6,524		12,203		19,244
		Total investments	75,001		73,173		71,650		71,557		72,991
Interest-bearing balances with banks			10,662		9,716		9,371		9,673		8,998
Federal funds sold			3,293		31		199		926		808
		Total earning assets	509,036		487,515		481,647		482,664		489,289
Other assets			49,025		45,300		49,010		50,667		54,929
		Total assets	$558,061		$532,815		$530,657		$533,331		$545,027
Liabilities and stockholders' equity:
Deposits:
	Interest-bearing		$402,339		$384,278		$395,272		$392,343		$388,317
	Noninterest-bearing		73,188		72,227		70,956		70,342		68,274
		Total deposits	475,527		456,505		466,228		462,685		456,591
Short-term borrowings			10,324		15,213		2,114		9,451		29,593
Long-term debt			11,122		11,203		11,284		11,360		9,440
Other liabilities			6,325		6,709		6,799		6,425		6,621
		Total liabilities	503,298		489,630		486,425		489,921		502,245
Stockholders' equity			54,763		43,185		44,232		43,410		42,782
		Total liabilities and stockholders' equity	$558,061		$532,815		$530,657		$533,331		$545,027

Riverview Financial Corporation
Asset Quality Data
(In thousands)
		Mar 31		Dec 31		Sept 30		June 30		Mar 31
		2017		2016		2016		2016		2016
At quarter end:
Nonperforming assets:
	Nonaccrual loans	$1,725		$1,386		$1,463		$1,575		$1,949
	Accruing restructured loans	5,597		5,805		6,017		6,600		6,626
	Accruing loans past due 90 days or more	189		359		133		349		199
	Foreclosed assets	561		625		988		842		1,043
Total nonperforming assets		8,072		$8,175		$8,601		$9,366		$9,817
Three months ended:
Allowance for loan losses:
Beginning balance		$3,732		$3,637		$3,609		$3,717		$4,365
Charge-offs		12		78		35		303		758
Recoveries		4		4		34		39		11
Provision for loan losses		605		169		29		156		99
Ending balance		$4,329		$3,732		$3,637		$3,609		$3,717

Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
		Mar 31		Dec 31		Sept 30		June 30		Mar 31
		2017		2016		2016		2016		2016
Three months ended:
Core net income (loss) per common share:
Distributed and undistributed income (loss) allocated to common stockholders		$(405)		$488		$971		$855		$753
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(1)				100		220		(1)
Add: Acquisition related expenses, net of tax		67				3		104		42
Net income (loss) Core		$(337)		$488		$874		$739		$796
Average common shares outstanding		3,454,704		3,232,359		3,224,053		3,214,248		3,206,501
Core net income (loss) per common share		$ (0.10)		$ 0.15		$ 0.27		$ 0.23		$ 0.25
Tangible book value:
Total stockholders' equity		$43,808		$41,920		$44,161		$43,721		$42,978
Less: Goodwill		5,079		5,408		5,408		5,408		4,757
Less: Other intangible assets, net		1,241		1,405		1,497		1,593		1,425
	Total tangible stockholders' equity	$37,488		$35,107		$37,256		$36,720		$36,796
Common shares outstanding		3,518,351		3,237,859		3,229,467		3,220,934		3,206,927
Tangible book value per share		$ 10.65		$ 10.84		$ 11.54		$ 11.40		$ 11.47
Core return on average stockholders' equity:
Net income (loss) GAAP		$(567)		$488		$971		$855		$753
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(1)				100		220		(1)
Add: Acquisition related expenses, net of tax		67				3		104		42
Net income (loss) Core		$(499)		$488		$874		$739		$796
Average stockholders' equity		$ 54,763		$ 43,185		$ 44,232		$ 43,410		$ 42,782
Core return on average stockholders' equity		(3.70)%		4.50%		7.86%		6.85%		7.47%
Return on average tangible equity:
Net income (loss) GAAP		$ (567)		$ 488		$ 971		$ 855		$ 753
Average stockholders' equity		$ 54,763		$ 43,185		$ 44,232		$ 43,410		$ 42,782
Less: average intangibles		6,765		6,857		6,955		6,383		6,226
Average tangible stockholders' equity		$ 47,998		$ 36,328		$ 37,277		$ 37,027		$ 36,556
Return on average tangible stockholders' equity		(4.79)%		5.34%		10.36%		9.29%		8.28%
Core return on average tangible stockholders' equity:
Net income (loss) GAAP		$(567)		$488		$971		$855		$753
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(1)				100		220		(1)
Add: Acquisition related expenses, net of tax		67				3		104		42
Net income (loss) Core		$(499)		$488		$874		$739		$796
Average stockholders' equity		$ 54,763		$ 43,185		$ 44,232		$ 43,410		$ 42,782
Less: average intangibles		6,765		6,857		6,955		6,383		6,226
Average tangible stockholders' equity		$ 47,998		$ 36,328		$ 37,277		$ 37,027		$ 36,556
Core return on average tangible stockholders' equity		(4.22)%		5.34%		9.33%		8.03%		8.76%
Core return on average assets:
Net income (loss) GAAP		$(567)		$488		$971		$855		$753
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(1)				100		220		(1)
Add: Acquisition related expenses, net of tax		67				3		104		42
Net income (loss) Core		$(499)		$488		$874		$739		$796
Average assets		$ 558,061		$ 532,815		$ 530,657		$ 533,331		$ 545,027
Core return on average assets		(0.36)%		0.36%		0.66%		0.56%		0.59%

Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
	Mar 31		Mar 31
	2017		2016
Three months ended:
Core net income per common share:
Net income (loss) GAAP	$(405)		$753
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax	(1)		(1)
Add: Acquisition related expenses, net of tax	67		42
Net income Core	$(337)		$796
Average common shares outstanding	3,454,704		3,206,501
Core net income (loss) per common share	$(0.10)		$ 0.25