Riverview Financial Corporation Reports First Quarter Earnings For 2020.

HARRISBURG, Pa: Riverview Financial Corporation (the "Company" or "Riverview") (NASDAQ: RIVE), today reported unaudited financial results at and for the three months ended March 31, 2020. Riverview reported net income of $633 thousand, or $0.07 per basic and diluted weighted average common share, for the first quarter of 2020, compared to a net loss of $687 thousand, or $(0.08) per basic and diluted weighted average common share, for the first quarter of 2019. The major factor impacting earnings in the first quarter of 2020 was the recognition of a $1.8 million provision for loan losses. The increase in the provision for loan losses was a result of loan growth and increases in historical loss factors primarily due to the charge-off of one unsecured credit associated with a fraudulent borrower and in qualitative factors related to the reserve build associated with the effects of COVID-19 as of the balance sheet date. As the Company weighs additional information on the potential impact of this event on our overall economic prospects, coupled with our loan officers' further assessments of the impact on individual borrowers, our delinquencies and loss estimates will be revised as needed. These revisions could have a material impact on future provisions to the allowance for loan losses and results of operations. Another major factor influencing the level of earnings in the first quarter of 2020 was the recognition of $315 thousand less of net accretion on acquired assets and assumed liabilities comparing the first quarters of 2020 and 2019. Partially offsetting the impact of these reductions to income was the recognition of a $815 thousand net gain on the sale of investment securities in order to provide liquidity to fund loan demand and limit exposure to falling rates through the disposition of adjustable rate securities. The results for the first three months of 2019 included the recognition of a nonrecurring executive separation pre-tax expense totaling $2.2 million, which primarily contributed to the first quarter net loss.

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

Total noninterest expense decreased $977 thousand, or 9.6%, during the first quarter of 2020 compared to the quarter ended December 31, 2019.

Salaries and employee benefits expense decreased $217 thousand, or 16.5% annualized, in the first quarter of 2020 compared to the fourth quarter of 2019.

Total interest-bearing fund costs declined to 0.95% for the quarter ended March 31, 2020 from 0.99% for the quarter ended December 31, 2019.

The coverage ratio, allowance for loan losses as a percentage of nonperforming assets, increased to 144.0% at March 31, 2020, an improvement from 108.9% at March 31, 2019.

The allowance for loan loss balance increased 9.8% during the first quarter of 2020 compared to 2019 year end.

Book value per share and...

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