HARRISBURG, Pa., July 20, 2017 (GLOBE NEWSWIRE) -- Riverview Financial Corporation (“Riverview”) (OTCQX:RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the three and six months ended June 30, 2017.  Riverview reported net income of $179 thousand, or $0.04 per basic and diluted weighted average common share, for the second quarter of 2017, compared to net income of $855 thousand, or $0.27 per basic and diluted weighted average common share, for the comparable period of 2016.

For the six months ended June 30, 2017, Riverview reported a net loss of $388 thousand, or $(0.08) per basic and diluted weighted average common share, compared to net income of $1,608 thousand, or $0.50 per basic and diluted weighted average common share, for the same period last year. The net loss recognized for the first six months of 2017 was a direct result of incurring certain costs related to implementing strategic initiatives to enhance shareholder value through asset growth provided by organic and inorganic opportunities. On January 20, 2017, we announced the successful completion of a $17.0 million private placement of common and preferred securities. The additional capital afforded us the ability to significantly grow our loan portfolio through hiring multiple teams of experienced and established lenders to serve new and existing markets. More notably the capital raise allowed us to announce on April 20, 2017, the execution of a definitive merger agreement in which Riverview Financial Corporation will merge with CBT Financial Corp., the parent company of CBT Bank, in a stock transaction valued at approximately $49.4 million.  This merger 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. The transaction is expected to close in the fourth quarter of 2017 pending regulatory and shareholder approval.

“We look forward to the pending strategic partnership with CBT Financial Corp. along with obtaining the benefits derived from the merger for shareholders, customers and employees. 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. The addition of our new lending teams has provided net loan growth of more than $40.3 million in the second quarter and $95.4 million for the first half of 2017,” stated Kirk D. Fox, Chief Executive Officer. “In addition, we are pleased to announce our entrance into Lycoming County as we expect to open our first community banking office located in Williamsport, PA during the third quarter of 2017,” concluded Fox.  

HIGHLIGHTS

• For the second quarter of 2017, loans, net grew 34.8% annualized.
• Deposits increased $27.4 million or 22.1% annualized to $523.9 million at the end of the second quarter of 2017 from $496.5 million at the end of the first quarter of 2017.
• Stockholders’ equity increased $15.6 million to $57.5 million or 9.2% of total assets at June 30, 2017 as a result of the capital offering from December 31, 2016.
• Asset quality improved as nonperforming assets as a percentage of loans, net and other real estate owned declined to 1.41% at June 30, 2017 compared to 1.74% at March 31, 2017 and 2.35% at June 30, 2016.

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three and six months ended June 30 were $5.0 million and $9.5 million in 2017 compared to $4.5 million and $9.1 million in 2016, respectively.  The increase in tax equivalent net interest income was primarily attributable to a favorable volume variance from an increase in average interest earning assets exceeding the growth of average interest bearing liabilities. Partially offsetting the positive impact of net average asset growth was an unfavorable rate variance caused by a decline in the tax-equivalent net interest margin. The increase in average earning assets exceeded the growth of average interest bearing liabilities by $21.8 million comparing the second quarters of 2017 and 2016. For the three months ended June 30, the tax-equivalent net interest margin decreased to 3.58% in 2017 from 3.75% in 2016. Average earning assets increased to $48.5 million compared to an increase in average interest bearing liabilities of $26.3 million in the first half of 2017. Loans, net averaged $447.7 million in 2017 and $403.8 million in 2016. Average investments totaled $74.2 million in 2017 and $72.3 million in 2016. The tax-equivalent net interest margin for the six months ended June 30, 2017, declined 19 basis points from 3.77% for the comparable period of 2016. The tax-equivalent yield on the loan portfolio decreased to 4.32% in the first half of 2017 compared to 4.50% in 2016. For the six months ended June 30, the tax-equivalent yield on total investments increased to 3.46% in 2017 from 3.30% in 2016. The cost of funds increased 11 basis points in 2017 from 0.54% in 2016. The tax-equivalent net interest margin increased slightly by one basis point to 3.58% in the second quarter of 2017 from 3.57% in the first quarter of 2017.  Average earning assets increased $51.3 million while average interest bearing liabilities increased $45.2 million comparing the second and first quarters of 2017.

For the quarter ended June 30, the provision for loan losses increased to $519 thousand in 2017 from $156 thousand in 2016. The provision for loan losses totaled $1,124 thousand for the six months ended June 30, 2017, compared to $255 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 three months ended June 30, noninterest income totaled $802 thousand in 2017, a decrease of $251 thousand from $1,053 thousand in 2016. The decrease was primarily attributable to a decrease in net gains recognized on the sale of available-for-sale investment securities. Wealth management income grew $15 thousand while mortgage banking income grew $38 thousand when comparing the second quarter of 2017 with 2016. For the six months ended, noninterest income decreased to $1,581 thousand in 2017 from $1,690 thousand in 2016. The year over year decrease of $269 thousand in net gains recognized on the sale of available-for-sale investment securities was partially offset by improvements in wealth management income of $115 thousand.

For the quarter ended June 30, noninterest expense increased $796 thousand to $5,041 thousand in 2017 from $4,245 thousand in 2016. Noninterest expense increased $1,844 thousand, or 22.1%, to $10,204 thousand for the six months ended June 30, 2017, from $8,360 thousand for the same period last year. The majority of the increase in salaries and employee benefit expense was the result of hiring new asset generation employees and related costs, as well as the opening of a new, full service office in Temple, Berks County, Pennsylvania. Additions to leased facilities for these newly opened offices along with offices to support the lending teams were primarily responsible for the $201 thousand or 18.6% increase in occupancy and equipment costs. The increase in other expenses comparing the first six months of 2017 and 2016 was a result of incurring merger related costs of $269 thousand in 2017.

BALANCE SHEET REVIEW

Total assets, loans, net and deposits totaled $628.2 million, $504.8 million, and $523.9 million, respectively, at June 30, 2017. Loans, net increased $40.3 million, or 8.7% in the second quarter of 2017 and $95.4 million or 23.3% for the first half of 2017. Growth in commercial loans was primarily responsible for the majority of the improvement. Total deposits increased $27.4 million or 5.5% in the second quarter of 2017 and $71.3 million or 15.8% in the first six months of 2017. Noninterest-bearing deposits increased $2.2 million, while interest-bearing deposits increased $69.1 million in the first half of 2017. An improvement in the volume of money market accounts was primarily responsible for the increase in interest-bearing deposits.

Stockholders’ equity totaled $57.5 million or $11.79 per common share at June 30, 2017, as compared to $41.9 million, or $12.95 per common share at December 31, 2016. The increase in equity in the first six months 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 a private placement. Effective as of the close of business on June 22, 2017, Riverview filed an amendment to the Articles of Incorporation to authorize a class of non-voting common stock after obtaining shareholder approval on June 21, 2017. As a result, each share of Series A preferred stock was automatically converted into one share of non-voting common stock as of the effective date. The non-voting common stock has the same relative rights as, and is identical in all respects with, each other share of common stock of Riverview, except that holders of non-voting common stock do not have voting rights. Tangible stockholders’ equity per common share decreased to $10.51 per share at June 30, 2017, compared to $10.84 per share at year-end 2016. Dividends declared for the six months ended June 30, 2017 amounted to $0.28 per share. The annualized dividend yield based on the closing price of $13.48 per share on June 30, 2017 was 4.1%.

ASSET QUALITY REVIEW

Nonperforming assets were $7.1 million or 1.4% of loans, net and foreclosed assets at June 30, 2017, an improvement from $8.1 million, or 2.0%, at December 31, 2016, and $9.4 million, or 2.4% at June 30, 2016. Adjusting for accruing restructured loans, non-performing assets were $1.9 million, or 0.4% of loans, net and foreclosed assets at June 30, 2017, $2.4 million or 0.6% at December 31, 2016, and $2.8 million, or 0.7%, at June 30, 2016. The allowance for loan losses equaled $4.8 million or 0.96% of loans, net at June 30, 2017, compared to $3.7 million or 0.91% of loans, net at December 31, 2016, and $3.6 million, or 0.91% of loans, net, at June 30, 2016. Loans charged-off, net of recoveries, for the three and six months ended June 30, equaled $14 thousand and $22 thousand in 2017, respectively, compared to $264 thousand and $1,011 thousand for the comparable periods 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, Lycoming, Northumberland, Perry and Schuylkill Counties, as well as its Southwestern Pennsylvania market area of Bedford, Cambria, Somerset and Westmoreland Counties through sixteen 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’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.

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 pre­acquisition 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 and six months ended June 30, 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)
		Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
		2017			2017			2016			2016			2016
Key performance data:
Per common share data:
Net income (loss)	$	0.04		$	(0.12	)	$	0.15		$	0.30		$	0.27
Core net income (loss) (1)	$	0.05		$	(0.10	)	$	0.15		$	0.27		$	0.23
Cash dividends declared	$	0.14		$	0.14		$	0.14		$	0.14		$	0.14
Book value	$	11.79		$	12.45		$	12.95		$	13.67		$	13.57
Tangible book value (1)	$	10.51		$	10.65		$	10.84		$	11.54		$	11.40
Market value:
High	$	14.50		$	12.20		$	11.78		$	12.20		$	12.10
Low	$	11.69		$	11.46		$	11.05		$	11.00		$	11.00
Closing	$	13.48		$	11.95		$	11.60		$	11.40		$	12.10
Market capitalization	$	65,739		$	42,044		$	37,559		$	36,816		$	38,973
Common shares outstanding		4,876,774			3,518,351			3,237,859			3,229,467			3,220,934
Selected ratios:
Return on average stockholders' equity		1.25	%		(4.20	)%		4.50	%		8.73	%		7.92	%
Core return on average stockholders’ equity (1)		1.73	%		(3.70	)%		4.50	%		7.86	%		6.85	%
Return on average tangible stockholders’ equity (1)		1.41	%		(4.79	)%		5.34	%		10.36	%		9.29	%
Core return on average tangible stockholders’ equity (1)		1.95	%		(4.22	)%		5.34	%		9.33	%		8.03	%
Return on average assets		0.12	%		(0.41	)%		0.36	%		0.73	%		0.64	%
Core return on average assets (1)		0.16	%		(0.36	)%		0.36	%		0.66	%		0.56	%
Stockholders' equity to total assets		9.15	%		9.51	%		7.72	%		8.38	%		8.29	%
Efficiency ratio (2)		86.53	%		94.91	%		82.02	%		74.26	%		79.80	%
Nonperforming assets to loans, net, and foreclosed assets		1.41	%		1.74	%		1.99	%		2.15	%		2.35	%
Net charge-offs to average loans, net		0.01	%		0.01	%		0.07	%		0.00	%		0.27	%
Allowance for loan losses to loans, net		0.96	%		0.93	%		0.91	%		0.91	%		0.91	%
Earning assets yield (FTE) (3)		4.16	%		4.08	%		4.19	%		4.43	%		4.22	%
Cost of funds		0.69	%		0.60	%		0.51	%		0.51	%		0.54	%
Net interest spread (FTE) (3)		3.47	%		3.48	%		3.68	%		3.92	%		3.68	%
Net interest margin (FTE) (3)		3.58	%		3.57	%		3.76	%		3.99	%		3.75	%

(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)
Six Months Ended			Jun 30				Jun 30
			2017				2016
Interest income:
Interest and fees on loans:
Taxable		$	9,274			$	8,764
Tax-exempt			215				174
Interest and dividends on investment securities:
Taxable			1,130				836
Tax-exempt			93				227
Dividends			3				7
Interest on interest-bearing deposits in other banks			47				28
Interest on federal funds sold			10				2
Total interest income			10,772				10,038
Interest expense:
Interest on deposits			1,200				928
Interest on short-term borrowings			85				56
Interest on long-term debt			153				137
Total interest expense			1,438				1,121
Net interest income			9,334				8,917
Provision for loan losses			1,124				255
Net interest income after provision for loan losses			8,210				8,662
Noninterest income:
Service charges, fees and commissions			629				618
Commissions and fees on fiduciary activities			61				54
Wealth management income			452				337
Mortgage banking income			229				191
Life insurance investment income			147				158
Net gain (loss) on sale of investment securities available-for-sale			63				332
Total noninterest income			1,581				1,690
Noninterest expense:
Salaries and employee benefits expense			5,593				4,277
Net occupancy and equipment expense			1,280				1,079
Amortization of intangible assets			235				152
Net cost of operation of other real estate owned			174				131
Other expenses			2,922				2,721
Total noninterest expense			10,204				8,360
Income (loss) before income taxes			(413	)			1,992
Provision for income tax expense (benefit)			(25	)			384
Net income (loss)		$	(388	)		$	1,608
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available-for-sale		$	1,758			$	1,088
Reclassification adjustment for (gain) loss included in net income			(63	)			(332	)
Change in pension liability
Income tax expense (benefit) related to other comprehensive income			576				257
Other comprehensive income (loss), net of income taxes			1,119				499
Comprehensive income (loss)		$	731			$	2,107
Per common share data:
Net income (loss):
Basic		$	(0.08	)		$	0.50
Diluted		$	(0.08	)		$	0.50
Average common shares outstanding:
Basic			3,555,629				3,210,375
Diluted			3,555,629				3,233,937
Cash dividends declared		$	0.28			$	0.28

Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Three months ended			Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
			2017			2017			2016			2016			2016
Interest income:
Interest and fees on loans:
Taxable		$	4,989		$	4,285		$	4,203		$	4,598		$	4,337
Tax-exempt			107			108			190			87			88
Interest and dividends on investment securities available-for-sale:
Taxable			566			564			556			539			435
Tax-exempt			46			47			46			53			91
Dividends						3						1			4
Interest on interest-bearing deposits in other banks			24			23			12			13			13
Interest on federal funds sold			4			6									1
Total interest income			5,736			5,036			5,007			5,291			4,969
Interest expense:
Interest on deposits			668			532			418			447			461
Interest on short-term borrowings			63			22			25			3			13
Interest on long-term debt			78			75			81			77			82
Total interest expense			809			629			524			527			556
Net interest income			4,927			4,407			4,483			4,764			4,413
Provision for loan losses			519			605			169			29			156
Net interest income after provision for loan losses			4,408			3,802			4,314			4,735			4,257
Noninterest income:
Service charges, fees and commissions			292			337			345			315			320
Commissions and fees on fiduciary activities			31			30			30			34			35
Wealth management income			194			258			294			194			179
Mortgage banking income			147			82			196			210			109
Life insurance investment income			74			73			69			118			76
Net gain (loss) on sale of investment securities available-for-sale			64			(1	)					152			334
Total noninterest income			802			779			934			1,023			1,053
Noninterest expense:
Salaries and employee benefits expense			2,757			2,836			2,650			2,334			2,126
Net occupancy and equipment expense			634			646			548			538			526
Amortization of intangible assets			71			164			93			95			76
Net cost of operation of other real estate owned			138			36			117			83			89
Other expenses			1,441			1,481			1,228			1,283			1,428
Total noninterest expense			5,041			5,163			4,636			4,333			4,245
Income (loss) before income taxes			169			(582	)		612			1,425			1,065
Income tax expense (benefit)			(10	)		(15	)		124			454			210
Net income (loss)		$	179		$	(567	)	$	488		$	971		$	855
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available-for-sale		$	1,246		$	512		$	(3,668	)	$	(148	)	$	581
Reclassification adjustment for (gain) loss included in net income			(64	)		1						(152	)		(334	)
Change in pension liability									47
Income tax expense (benefit) related to other comprehensive income (loss)			402			174			(1,231	)		(102	)		84
Other comprehensive income (loss), net of income taxes			780			339			(2,390	)		(198	)		163
Comprehensive income (loss)		$	959		$	(228	)	$	(1,902	)	$	773		$	1,018
Per common share data:
Net income (loss):
Basic		$	0.04		$	(0.12	)	$	0.15		$	0.30		$	0.27
Diluted		$	0.04		$	(0.12	)	$	0.15		$	0.30		$	0.27
Average common shares outstanding:
Basic			3,655,446			3,454,704			3,232,359			3,224,053			3,214,248
Diluted			3,726,939			3,454,704			3,254,719			3,244,689			3,245,868
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		Jun 30				Mar 31			Dec 31				Sept 30			Jun 30
		2017				2017			2016				2016			2016
Net interest income:
Interest income
Loans, net:
Taxable	$	4,989			$	4,285		$	4,203			$	4,598		$	4,337
Tax-exempt		162				164			288				132			134
Total loans, net		5,151				4,449			4,491				4,730			4,471
Investments:
Taxable		566				567			556				540			439
Tax-exempt		70				71			70				80			138
Total investments		636				638			626				620			577
Interest on interest-bearing balances in other banks		24				23			12				13			13
Federal funds sold		4				6										1
Total interest income		5,815				5,116			5,129				5,363			5,062
Interest expense:
Deposits		668				532			418				447			461
Short-term borrowings		63				22			25				3			13
Long-term debt		78				75			81				77			82
Total interest expense		809				629			524				527			556
Net interest income	$	5,006			$	4,487		$	4,605			$	4,836		$	4,506
Loans, net:
Taxable		4.36		%		4.30	%		4.26		%		4.71	%		4.49		%
Tax-exempt		3.99		%		4.06	%		9.16		%		4.50	%		4.33		%
Total loans, net		4.35		%		4.30	%		4.42		%		4.70	%		4.49		%
Investments:
Taxable		3.35		%		3.32	%		3.28		%		3.30	%		2.97		%
Tax-exempt		4.89		%		5.01	%		4.84		%		4.88	%		4.55		%
Total investments		3.47		%		3.45	%		3.40		%		3.44	%		3.24		%
Interest-bearing balances with banks		0.95		%		0.87	%		0.49		%		0.55	%		0.54		%
Federal funds sold		0.94		%		0.74	%									0.43		%
Total earning assets		4.16		%		4.08	%		4.19		%		4.43	%		4.22		%
Interest expense:
Deposits		0.62		%		0.54	%		0.43		%		0.45	%		0.47		%
Short-term borrowings		1.11		%		0.86	%		0.65		%		0.56	%		0.55		%
Long-term debt		2.81		%		2.73	%		2.88		%		2.71	%		2.90		%
Total interest-bearing liabilities		0.69		%		0.60	%		0.51		%		0.51	%		0.54		%
Net interest spread		3.47		%		3.48	%		3.68		%		3.92	%		3.68		%
Net interest margin		3.58		%		3.57	%		3.76		%		3.99	%		3.75		%

Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
		Jun 30				Mar 31				Dec 31			Sept 30			Jun 30
At period end		2017				2017				2016			2016			2016
Assets:
Cash and due from banks	$	9,613			$	10,852			$	7,783		$	7,066		$	6,193
Interest-bearing balances in other banks		6,064				11,552				11,337			9,051			8,606
Federal funds sold
Investment securities available-for-sale		67,852				72,741				73,113			72,371			74,253
Loans held for sale		1,037				522				652			820			318
Loans, net		504,749				464,481				409,343			398,193			398,493
Less: allowance for loan losses		4,834				4,329				3,732			3,637			3,609
Net loans		499,915				460,152				405,611			394,556			394,884
Premises and equipment, net		12,132				12,116				12,201			12,287			12,236
Accrued interest receivable		1,651				1,881				1,726			1,701			1,586
Goodwill		5,079				5,079				5,408			5,408			5,408
Other intangible assets, net		1,170				1,241				1,405			1,497			1,593
Other assets		23,728				24,237				23,812			22,321			22,236
Total assets	$	628,241			$	600,373			$	543,048		$	527,078		$	527,313
Liabilities:
Deposits:
Noninterest-bearing	$	76,096			$	79,127			$	73,932		$	71,329		$	70,230
Interest-bearing		447,799				417,380				378,628			387,664			391,217
Total deposits		523,895				496,507				452,560			458,993			461,447
Short-term borrowings		30,000				30,000				31,500			6,000			4,069
Long-term debt		11,589				11,073				11,154			11,257			11,335
Accrued interest payable		194				203				192			220			221
Other liabilities		5,048				5,499				5,722			6,447			6,520
Total liabilities		570,726				543,282				501,128			482,917			483,592
Stockholders' equity:
Preferred stock						13,283
Common stock		45,240				31,833				29,052			28,955			28,855
Capital surplus		235				224				220			211			201
Retained earnings		13,118				13,609				14,845			14,802			14,274
Accumulated other comprehensive income (loss)		(1,078		)		(1,858		)		(2,197	)		193			391
Total stockholders' equity		57,515				57,091				41,920			44,161			43,721
Total liabilities and stockholders' equity	$	628,241			$	600,373			$	543,048		$	527,078		$	527,313

Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
		Jun 30		Mar 31		Dec 31		Sept 30		Jun 30
Average quarterly balances		2017		2017		2016		2016		2016
Assets:
Loans, net:
Taxable	$	458,702	$	403,684	$	392,085	$	388,752	$	388,062
Tax-exempt		16,285		16,396		12,510		11,675		12,446
Total loans, net		474,987		420,080		404,595		400,427		400,508
Investments:
Taxable		67,753		69,253		67,423		65,126		59,354
Tax-exempt		5,747		5,748		5,750		6,524		12,203
Total investments		73,500		75,001		73,173		71,650		71,557
Interest-bearing balances with banks		10,137		10,662		9,716		9,371		9,673
Federal funds sold		1,709		3,293		31		199		926
Total earning assets		560,333		509,036		487,515		481,647		482,664
Other assets		49,382		49,025		45,300		49,010		50,667
Total assets	$	609,715	$	558,061	$	532,815	$	530,657	$	533,331
Liabilities and stockholders' equity:
Deposits:
Interest-bearing	$	435,033	$	402,339	$	384,278	$	395,272	$	392,343
Noninterest-bearing		77,440		73,188		72,227		70,956		70,342
Total deposits		512,473		475,527		456,505		466,228		462,685
Short-term borrowings		22,838		10,324		15,213		2,114		9,451
Long-term debt		11,146		11,122		11,203		11,284		11,360
Other liabilities		5,909		6,325		6,709		6,799		6,425
Total liabilities		552,366		503,298		489,630		486,425		489,921
Stockholders' equity		57,349		54,763		43,185		44,232		43,410
Total liabilities and stockholders' equity	$	609,715	$	558,061	$	532,815	$	530,657	$	533,331

Riverview Financial Corporation
Asset Quality Data
(In thousands)
	Jun 30		Mar 31		Dec 31		Sept 30		Jun 30
		2017		2017		2016		2016		2016
At quarter end:
Nonperforming assets:
Nonaccrual  loans	$	1,702	$	1,725	$	1,386	$	1,463	$	1,575
Accruing restructured loans		5,199		5,597		5,805		6,017		6,600
Accruing loans past due 90 days or more		35		189		359		133		349
Foreclosed assets		205		561		625		988		842
Total nonperforming assets	$	7,141	$	8,072	$	8,175	$	8,601	$	9,366
Three months ended:
Allowance for loan losses:
Beginning balance	$	4,329	$	3,732	$	3,637	$	3,609	$	3,717
Charge-offs		21		12		78		35		303
Recoveries		7		4		4		34		39
Provision for loan losses		519		605		169		29		156
Ending balance	$	4,834	$	4,329	$	3,732	$	3,637	$	3,609

Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
		Jun 30					Mar 31						Dec 31				Sept 30							Jun 30
		2017					2017						2016				2016							2016
Three months ended:
Core net income (loss) per common share:
Net income (loss)	$	179				$	(567				)	$	488			$	971						$	855
Dividends on preferred stock		(186			)		(185				)
Net income (loss) available to common stockholders		(7			)		(752				)		488				971							855
Undistributed loss (income) allocated to preferred stockholders		128					347
Income (loss) allocated to common stockholders		121					(405				)		488				971							855
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		42					(1				)						100							220
Add: Acquisition related expenses, net of tax		111					67										3							104
Net income (loss) Core	$	190				$	(337				)	$	488			$	874						$	739
Average common shares outstanding		3,655,446					3,454,704						3,232,359				3,224,053							3,214,248
Core net income (loss) per common share	$	0.05				$	(0.10				)	$	0.15			$	0.27						$	0.23
Tangible book value:
Total stockholders' equity	$	57,515				$	43,808					$	41,920			$	44,161						$	43,721
Less: Goodwill		5,079					5,079						5,408				5,408							5,408
Less: Other intangible assets, net		1,170					1,241						1,405				1,497							1,593
Total tangible stockholders' equity	$	51,266				$	37,488					$	35,107			$	37,256						$	36,720
Common shares outstanding		4,876,774					3,518,351						3,237,859				3,229,467							3,220,934
Tangible book value per share	$	10.51				$	10.65					$	10.84			$	11.54						$	11.40
Core return on average stockholders' equity:
Net income (loss) GAAP	$	179				$	(567				)	$	488			$	971						$	855
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		42					(1				)						100							220
Add: Acquisition related expenses, net of tax		111					67										3							104
Net income (loss) Core	$	248				$	(499				)	$	488			$	874						$	739
Average stockholders' equity	$	57,349				$	54,763					$	43,185			$	44,232						$	43,410
Core return on average stockholders' equity		1.73			%		(3.70				)%		4.50		%		7.86					%		6.85		%
Return on average tangible equity:
Net income (loss) GAAP	$	179				$	(567				)	$	488			$	971						$	855
Average stockholders' equity	$	57,349				$	54,763					$	43,185			$	44,232						$	43,410
Less: average intangibles		6,284					6,765						6,857				6,956							6,383
Average tangible stockholders' equity	$	51,065				$	47,998					$	36,328			$	37,276						$	37,027
Return on average tangible stockholders' equity		1.41			%		(4.79				)%		5.34		%		10.36					%		9.29		%
Core return on average tangible stockholders' equity:
Net income (loss) GAAP	$	179				$	(567				)	$	488			$	971						$	855
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		42					(1				)						100							220
Add: Acquisition related expenses, net of tax		111					67										3							104
Net income (loss) Core	$	248				$	(499				)	$	488			$	874						$	739
Average stockholders' equity	$	57,349				$	54,763					$	43,185			$	44,232						$	43,410
Less: average intangibles		6,284					6,765						6,857				6,956							6,383
Average tangible stockholders' equity	$	51,065				$	47,998					$	36,328			$	37,276						$	37,027
Core return on average tangible stockholders' equity		1.95			%		(4.22				)%		5.34		%		9.33					%		8.03		%
Core return on average assets:
Net income (loss) GAAP	$	179				$	(567				)	$	488			$	971						$	855
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		42					(1				)						100							220
Add: Acquisition related expenses, net of tax		111					67										3							104
Net income (loss) Core	$	248				$	(499				)	$	488			$	874						$	739
Average assets	$	609,715				$	558,061					$	532,815			$	530,657						$	533,331
Core return on average assets		0.16			%		(0.36				)%		0.36		%		0.66					%		0.56		%
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
										Jun 30										Jun 30
										2017										2016
Six months ended:
Core net income per common share:
Net income (loss)									$	(388								)	$	1,608
Dividends on preferred stock										(371								)
Net income (loss) available to common stockholders										(759								)		1,608
Undistributed loss allocated to preferred stockholders										475
Income (loss) allocated to common stockholders										(284								)		1,608
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax										42										219
Add: Acquisition related expenses, net of tax										178										145
Net income Core									$	(148								)	$	1,534
Average common shares outstanding										3,555,629										3,210,375
Core net income (loss) per common share									$	(0.05								)	$	0.48

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

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