Riverview Bancorp (RVSB) of Vancouver, Wash., expects to record its second consecutive quarterly loss after significantly increasing its loan-loss provision.
The $862 million-asset company said Friday after the market closed that it expects to post a pre-tax loan-loss provision of between $14 million and $15 million for its fiscal-year fourth-quarter that ended March 31. The bank expects a loss for the quarter ranging from roughly 55 cents to 60 cents per share.
In heavy trading, Riverview's shares were down nearly 4% early Monday, to $1.98.
The increase in the provision stems from updated appraisals on several properties and from the bank’s ongoing internal loan review, Riverview said.
At March 31, the bank’s allowance for loan loss is expected to be between $18 million and $19 million. The allowance should be between 2.65% and 2.75% of total loans and 40% to 45% of nonperforming loans at March 31.
For the quarter that ended Dec. 31, the company recorded a loan-loss provision of $8.1 million after determining that five previously performing real estate loans were actually impaired.
Riverview lost $16.6 million for that quarter after it established an $8.7 million deferred tax asset valuation allowance.