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Riverview Financial Corporation Reports Third Quarter 2016 Earnings

HARRISBURG, PA -- (Marketwired) -- 10/19/16 -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the three and nine months ended September 30, 2016. Riverview reported net income of $971 thousand, or $0.30 per basic and diluted weighted average share for the third quarter of 2016, compared to $622 thousand, or $0.23 per share, for the comparable period of 2015.

Core net income for the three months ended September 30, 2016 was $880 thousand, an increase of 20.5% from $730 thousand for the second quarter of 2016 and an increase of 1.6% from $866 thousand for the same period in 2015. Core net income, a non-GAAP financial measure reconciled to net income in the tabular material that follows, excludes net gains on sale of investment securities and acquisition related expenses, net of tax. Net gains on the sale of investment securities were $152 thousand for the third quarter of 2016 and $11 thousand for the same period last year. The results for the three months ended September 30, 2015, included pretax expenses related to the acquisition of Citizens National Bank of Meyersdale (the "merger") of approximately $380 thousand. Core net income per share for the three months ended September 30, 2016 was $0.27, compared to $0.23 for the second quarter of 2016 and $0.32 for the same period in 2015.

Net income for the nine months ended September 30, 2016, totaled $2.6 million or $0.80 per share compared to a net loss of $348 thousand or ($0.13) per share for the same period last year.

Core net income for the nine months ended September 30, 2016 was $2.4 million, up 61.8% from $1.5 million for the same period in 2015. Core net income per share for the nine months ended September 30, 2016 was $0.75, an increase from $0.55 for the same period in 2015. The results for the nine months ended September 30, 2016 included net gains on sale of investment securities of $319 thousand compared to a net loss of $20 thousand for the comparable nine months of 2015. Pretax acquisition and restructuring related expenses recognized for the nine months ended September 30, 2015, approximated $2.8 million.

"We are pleased with the progression of our quarterly earnings over the past three quarters after the completion of the merger of Citizens National Bank of Meyersdale with and into Riverview Bank in the fourth quarter of 2015," stated Kirk D. Fox, Chief Executive Officer. "Despite the continuation of a very challenging interest rate and competitive environment, we have been able to maintain the level of our net interest margin which is the driving force behind the earnings improvement. In addition, we continue to focus our efforts on the successful build out of our Wealth Management Division in order to diversify revenue flow through increased noninterest income. This division will afford our customers the ability to invest in expanded offerings of investment products and services outside of those traditionally offered through our branch system," continued Fox. "With respect to nonfinancial objectives, we plan to introduce our mobile banking product in the first quarter of 2017, which will significantly improve customer access to their banking relationship with Riverview Bank and is expected to grow our core deposit base," concluded Fox.

HIGHLIGHTS

  • Net income per share increased to $0.30 in the third quarter of 2016 versus $0.23 for the same period in 2015.
  • For the third quarter of 2016, tax equivalent net interest margin improved to 3.99% compared to 3.78% for the same period in 2015.
  • Deposits grew $10.7 million or 3.2% annualized in 2016.
  • Nonperforming assets decreased to $8.6 million at the end of the third quarter of 2016 from $9.4 million at the end of the second quarter 2016 and $10.8 million at December 31, 2015.
  • Tangible book value per share improved $0.14 to $11.54 at the end of the third quarter of 2016 compared to $11.40 at June 30, 2016.

INCOME STATEMENT REVIEW

The tax-equivalent net interest margins for the three and nine months ended September 30, were 3.99% and 3.85% in 2016, compared to 3.78% and 3.76% in 2015, respectively.

Tax-equivalent net interest income for the nine months ended September 30, increased $2.5 million to $14.0 million in 2016 from $11.5 million in 2015. The increase in tax equivalent net interest income was primarily attributable to additional interest earning assets and interest bearing liabilities acquired as part of the merger as well as a 9 basis point increase in the tax-equivalent net interest margin. The tax-equivalent yield on the loan portfolio increased to 4.57% for the nine months ended September 30, 2016 compared to 4.48% for the comparable period in 2015. Loans, net averaged $402.5 million in 2016 and $349.8 million in 2015. For the nine months ended September 30, the tax-equivalent yield on total investments increased to 3.35% in 2016 from 3.33% in 2015. Average investments totaled $72.1 million in the nine months ended September 30, 2016 and $48.4 million for the comparable period in 2015. Average interest-bearing liabilities increased for the nine months ended September 30, 2016 to $416.4 million, compared to $346.1 million for the corresponding period last year. The cost of funds declined to 0.53% in the nine months ended September 30, 2016 from 0.57% for the same period of 2015. Tax-equivalent net interest income for the three months ended September 30, increased to $4.8 million in 2016 from $3.9 million in 2015.

The provision for loan losses totaled $284 thousand for the nine months ended September 30, 2016, compared to $450 thousand for the same period last year. The decrease in the provision for loan losses in 2016 was due to the application of our allowance for loan losses methodology, which was primarily influenced by a lower level of nonperforming assets as a percentage of loans and foreclosed assets compared to the prior year period. A provision of $29 thousand was recognized for the quarter ended September 30, 2016 as compared with none for the quarter ended September 30, 2015.

For the nine months ended September 30, noninterest income totaled $2.6 million in 2016, an increase from $1.7 million in 2015. Net gains on sale of investment securities were $484 thousand in 2016 compared to a net loss of $30 thousand in 2015. Increased service charges, fees and commissions, trust income, mortgage banking activities and life insurance investment income more than offset a decrease in wealth management income and losses on the sale of other real estate owned. For the three months ended September 30, noninterest income totaled $970 thousand in 2016 and $606 thousand in 2015.

Noninterest expense decreased $990 thousand or 7.3%, to $12.6 million for the nine months ended September 30, 2016, from $13.6 million for the nine months ended September 30, 2015. The reduction in salaries and employee benefit expense was a result of the recognition of a severance payout for the departure of the former chief executive officer in 2015. The implementation of certain consolidation and efficiency initiatives related to branch closures in 2015 was the primary cause of declines in net occupancy and equipment expenses in 2016. For the third quarter, noninterest expense amounted to $4.3 million in 2016 and $3.6 million in 2015.

BALANCE SHEET REVIEW

Total assets, loans and deposits totaled $527.1 million, $398.2 million and $459.0 million, respectively, at September 30, 2016. Loans, net decreased $11.7 million or 2.8% comparing the end of the third quarter 2016 to year-end 2015. Total deposits increased $10.7 million through nine months of 2016. Noninterest-bearing deposits increased $1.2 million or 2.3% annualized, while interest-bearing deposits increased $9.5 million or 3.3% annualized in 2016. Total investments were $72.4 million at September 30, 2016, a decrease of $3.5 million or 6.1% annualized from year-end 2015.

Stockholders' equity totaled $44.2 million or $13.67 per share at September 30, 2016, and $42.3 million or $13.20 per share at December 31, 2015. Total tangible stockholders' equity improved to $37.3 million or $11.54 per share at September 30, 2016, compared to $36.0 million or $11.24 per share at year-end 2015. Dividends declared for the nine months ended September 30, 2016 amounted to $0.41 per share representing a dividend payout ratio of 51.3%.

ASSET QUALITY REVIEW

Nonperforming assets were $8.6 million or 2.2% of loans, net and foreclosed assets at September 30, 2016, an improvement from $9.4 million or 2.4% at June 30, 2016, and $10.8 million or 2.6% at December 31, 2015. The allowance for loan losses equaled $3.6 million or 0.91% of loans, net at September 30, 2016 compared to $4.4 million or 1.07% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the nine months ended September 30, 2016, equaled $1.0 million or 0.33% of average loans, compared to $248 thousand or 0.10% of average loans for the nine months ended September 30, 2015.

Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, and Riverview Financial Wealth Management. An independent community bank, Riverview Bank serves Berks, Dauphin, Northumberland, Perry, Schuylkill, and Somerset Counties in Pennsylvania through 17 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 Financial Wealth Management provides investment advisory services to the general public through offices in Lebanon, Northumberland 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 and nine months ended September 30, 2016 and 2015, 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)

                    Sept 30      Jun 30      Mar 31      Dec 31     Sept 30
                       2016        2016        2016        2015        2015

Key performance
 data:
Per share data:
Net income
 (loss)          $     0.30  $     0.27  $     0.23  $    (0.15) $     0.23
Core net income
 (loss) (1)      $     0.27  $     0.23  $     0.25  $    (0.02) $     0.32
Cash dividends
 declared        $     0.14  $     0.14  $     0.14  $     0.14  $     0.14
Book value       $    13.67  $    13.57  $    13.40  $    13.20  $    13.54
Tangible book
 value (1)       $    11.54  $    11.40  $    11.47  $    11.24  $    12.26
Market value:
  High           $    12.20  $    12.10  $    13.20  $    13.40  $    13.00
  Low            $    11.00  $    11.00  $    11.00  $    12.50  $    11.90
  Closing        $    11.40  $    12.10  $    11.10  $    13.20  $    12.25
Market
 capitalization  $   36,816  $   38,973  $   35,597  $   42,313  $   33,213
Common shares
 outstanding      3,229,467   3,220,934   3,206,927   3,205,544   2,711,258

Selected ratios:

Return on
 average
 stockholders'
 equity                8.73%       7.92%       7.07%      (4.36%)      6.75%

Core return on
 average
 stockholders'
 equity (1)            7.91%       6.76%       7.47%      (0.70%)      9.39%

Return on
 average
 tangible
 stockholders'
 equity (1)           10.36%       9.34%       8.27%      (5.02%)      7.09%

Core return on
 average
 tangible
 stockholders'
 equity (1)            9.39%       7.97%       8.74%      (0.80%)      9.86%

Return on
 average assets        0.73%       0.64%       0.56%      (0.35%)      0.55%

Core return on
 average assets
 (1)                   0.66%       0.55%       0.59%      (0.06%)      0.77%

Stockholders'
 equity to total
 assets                8.38%       8.29%       7.95%       7.70%       8.12%

Efficiency ratio
 (2)                  74.02%      79.53%      76.85%      91.65%      79.46%

Nonperforming
 assets to
 loans, net, and
 foreclosed
 assets                2.15%       2.35%       2.44%       2.63%       3.40%

Net charge-offs
 to average
 loans, net                        0.27%       0.74%       0.73%       0.17%

Allowance for
 loan losses to
 loans, net            0.91%       0.91%       0.93%       1.07%       1.13%

Earning assets
 yield (FTE) (3)       4.43%       4.22%       4.26%       4.30%       4.23%

Cost of funds          0.51%       0.54%       0.53%       0.50%       0.53%

Net interest
 spread (FTE)
 (3)                   3.92%       3.68%       3.73%       3.80%       3.70%

Net interest
 margin (FTE)
 (3)                   3.99%       3.75%       3.80%       3.88%       3.78%

(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)

Nine Months Ended                                      Sept 30      Sept 30
                                                          2016         2015
Interest income:
Interest and fees on loans:
  Taxable                                          $    13,362  $    11,396
  Tax-exempt                                               261          210
Interest and dividends on investment securities:
  Taxable                                                1,375          690
  Tax-exempt                                               280          335
  Dividends                                                  8            9
Interest on interest-bearing deposits in other
 banks                                                      41           27
Interest on federal funds sold                               2
    Total interest income                               15,329       12,667

Interest expense:
Interest on deposits                                     1,375        1,294
Interest on short-term borrowings                           59           48
Interest on long-term debt                                 214          133
    Total interest expense                               1,648        1,475
    Net interest income                                 13,681       11,192
Provision for loan losses                                  284          450
    Net interest income after provision for loan
     losses                                             13,397       10,742

Noninterest income:
Service charges, fees, commissions                         933          740
Commissions and fees on fiduciary activities                88           65
Wealth management income                                   531          562
Mortgage banking income                                    401          316
Life insurance investment income                           276          167
Net loss on sale or adjustment of other real
 estate owned                                             (116)         (92)
Net gain (loss) on sale of investment securities
 available-for-sale                                        484          (30)
    Total noninterest income                             2,597        1,728

Noninterest expense:
Salaries and employee benefits expense                   6,611        7,636
Net occupancy and equipment expense                      1,617        2,135
Amortization of intangible assets                          247          196
Other expenses                                           4,102        3,600
    Total noninterest expense                           12,577       13,567
Income before income taxes                               3,417       (1,097)
Provision for income tax expense (benefit)                 838         (749)
    Net income (loss)                              $     2,579  $      (348)

Other comprehensive income (loss):
Unrealized gain (loss) on investment securities
 available-for-sale                                $       940  $      (144)
Reclassification adjustment for gain included in
 net income                                               (484)          30
Income tax expense (benefit) related to other
 comprehensive income                                      155          (39)
    Other comprehensive income (loss), net of
     income taxes                                          301          (75)
    Comprehensive income (loss)                    $     2,880  $      (423)

Per share data:
Net income (loss):
    Basic                                          $      0.80  $     (0.13)
    Diluted                                        $      0.80  $     (0.13)
Average common shares outstanding:
    Basic                                            3,214,967    2,709,887
    Diluted                                          3,237,553    2,718,742
Cash dividends declared                            $      0.41  $      0.41



                      Riverview Financial Corporation
                     Consolidated Statements of Income
                   (In thousands, except per share data)

Three months ended    Sept 30      Jun 30     Mar 31     Dec 31     Sept 30
                         2016        2016       2016       2015        2015

Interest income:
Interest and fees
 on loans:
  Taxable          $    4,598  $    4,337 $    4,427 $    3,937  $    3,821
  Tax-exempt               87          88         86         83          78
Interest and
 dividends on
 investment
 securities
 available-for-
 sale:
  Taxable                 539         435        401        269         225
  Tax-exempt               53          91        136        141         133
  Dividends                 1           4          3          4           3
Interest on
 interest-bearing
 deposits in other
 banks                     13          13         15         10           9
Interest on
 federal funds
 sold                       -           1          1
    Total interest
     income             5,291       4,969      5,069      4,444       4,269

Interest expense:
Interest on
 deposits                 447         461        467        385         419
Interest on short-
 term borrowings            3          13         43         33          15
Interest on long-
 term debt                 77          82         55         36          28
    Total interest
     expense              527         556        565        454         462
    Net interest
     income             4,764       4,413      4,504      3,990       3,807
Provision for loan
 losses                    29         156         99      1,022
    Net interest
     income after
     provision for
     loan losses        4,735       4,257      4,405      2,968       3,807

Noninterest
 income:
Service charges,
 fees, commissions        315         320        298        281         265
Commissions and
 fees on fiduciary
 activities                34          35         19         20          22
Wealth management
 income                   194         179        158        186         179
Mortgage banking
 income                   210         109         82         87         112
Life insurance
 investment income        118          76         82         50          42
Net gain (loss) on
 sale or
 adjustment of
 other real estate
 owned                    (53)        (69)         6       (168)        (25)
Net gain (loss) on
 sale of
 investment
 securities
 available-for-
 sale                     152         334         (2)        13          11
    Total
     noninterest
     income               970         984        643        469         606

Noninterest
 expense:
Salaries and
 employee benefits
 expense                2,334       2,126      2,151      2,364       1,765
Net occupancy and
 equipment expense        538         526        553        565         794
Amortization of
 intangible assets         95          76         76         63          65
Other expenses          1,313       1,448      1,341      1,252       1,025
    Total
     noninterest
     expense            4,280       4,176      4,121      4,244       3,649
Income before
 income taxes           1,425       1,065        927       (807)        764
Income tax expense
 (benefit)                454         210        174       (401)        142
    Net income
     (loss)        $      971  $      855 $      753 $     (406) $      622

Other
 comprehensive
 income (loss):
Unrealized gain
 (loss) on
 investment
 securities
 available-for-
 sale              $     (148) $      581 $      507 $      103  $      232
Reclassification
 adjustment for
 (gain) loss
 included in net
 income                  (152)       (334)         2        (13)        (11)
Change in pension
 liability                                                 (344)
Income tax expense
 (benefit) related
 to other
 comprehensive
 income (loss)           (102)         84        173        (86)         75
    Other
     comprehensive
     income
     (loss), net
     of income
     taxes               (198)        163        336       (168)        146
    Comprehensive
     income (loss) $      773  $    1,018 $    1,089 $     (574) $      768

Per share data:
Net income (loss):
    Basic          $     0.30  $     0.27 $     0.23 $    (0.15) $     0.23
    Diluted        $     0.30  $     0.27 $     0.23 $    (0.15) $     0.23
Average common
 shares
 outstanding:
    Basic           3,224,053   3,214,247  3,206,501  2,712,547   2,710,803
    Diluted         3,244,688   3,245,867  3,222,005  2,720,349   2,719,328
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          Sept 30   June 30    Mar 31    Dec 31   Sept 30
                               2016      2016      2016      2015      2015

Net interest income:
Interest income
Loans, net:
  Taxable                  $  4,598  $  4,337  $  4,427  $  3,937  $  3,821
  Tax-exempt                    132       133       130       126       118
    Total loans, net          4,730     4,470     4,557     4,063     3,939
Investments:
  Taxable                       540       439       404       273       228
  Tax-exempt                     80       138       206       214       202
    Total investments           620       577       610       487       430
  Interest on interest-
   bearing balances in
   other banks                   13        13        15        10         9
  Federal funds sold                        1         1
    Total interest income     5,363     5,061     5,183     4,560     4,378
Interest expense:
  Deposits                      447       461       467       385       419
  Short-term borrowings           3        13        43        33        15
  Long-term debt                 77        82        55        36        28
    Total interest expense      527       556       565       454       462
    Net interest income    $  4,836  $  4,505  $  4,618  $  4,106  $  3,916

Loans, net:
  Taxable                      4.71%     4.49%     4.52%     4.54%     4.44%
  Tax-exempt                   4.49%     4.31%     4.12%     4.43%     4.71%
    Total loans, net           4.70%     4.49%     4.51%     4.53%     4.45%
Investments:
  Taxable                      3.30%     2.97%     3.02%     3.06%     2.85%
  Tax-exempt                   4.90%     4.54%     4.31%     4.43%     4.41%
    Total investments          3.44%     3.24%     3.36%     3.54%     3.41%
  Interest-bearing balances
   with banks                  0.55%     0.54%     0.67%     0.39%     0.36%
  Federal funds sold                     0.43%     0.50%
    Total earning assets       4.43%     4.22%     4.26%     4.30%     4.23%
Interest expense:
  Deposits                     0.45%     0.47%     0.48%     0.48%     0.52%
  Short-term borrowings        0.56%     0.55%     0.58%     0.39%     0.35%
  Long-term debt               2.71%     2.90%     2.34%     1.88%     1.75%
    Total interest-bearing
     liabilities               0.51%     0.54%     0.53%     0.50%     0.53%
    Net interest spread        3.92%     3.68%     3.73%     3.80%     3.70%
    Net interest margin        3.99%     3.75%     3.80%     3.88%     3.78%



                       Riverview Financial Corporation
                         Consolidated Balance Sheets
                    (In thousands, except per share data)

                            Sept 30    Jun 30    Mar 31    Dec 31    Sept 30
At period end                  2016      2016      2016      2015       2015

Assets:
Cash and due from banks   $   7,066 $   6,193 $  13,145 $  14,679  $   6,514
Interest-bearing balances
 in other banks               9,051     8,606    12,194     8,009      8,739
Investment securities
 available-for-sale          72,371    74,253    73,317    75,850     53,853
Loans held for sale             820       318       594     1,094
Loans, net                  398,193   398,493   401,482   409,845    352,308
Less: allowance for loan
 losses                       3,637     3,609     3,717     4,365      3,994
Net loans                   394,556   394,884   397,765   405,480    348,314
Premises and equipment,
 net                         12,287    12,236    12,349    12,373     11,696
Accrued interest
 receivable                   1,701     1,586     1,610     1,594      1,368
Goodwill                      5,408     5,408     4,757     4,757      2,297
Other intangible assets,
 net                          1,497     1,593     1,425     1,501      1,175
Other assets                 22,321    22,236    23,759    24,112     18,009
    Total assets          $ 527,078 $ 527,313 $ 540,915 $ 549,449  $ 451,965


Liabilities:
Deposits:
  Noninterest-bearing     $  71,329 $  70,230 $  69,935 $  70,106  $  54,020
  Interest-bearing          387,664   391,217   385,569   378,236    324,715
    Total deposits          458,993   461,447   455,504   448,342    378,735
Short-term borrowings         6,000     4,069    25,000    42,575     23,333
Long-term debt               11,257    11,335    11,400     9,350      7,350
Accrued interest payable        220       221       267       236        112
Other liabilities             6,447     6,520     5,766     6,643      5,715
    Total liabilities       482,917   483,592   497,937   507,146    415,245



Stockholders' equity:
Common stock                 22,077    22,077    22,077    22,077     22,077
Capital surplus               7,089     6,979     6,812     6,784        254
Retained earnings            14,802    14,274    13,861    13,550     14,329
Accumulated other
 comprehensive income
 (loss)                         193       391       228      (108)        60
    Total stockholders'
     equity                  44,161    43,721    42,978    42,303     36,720
    Total liabilities and
     stockholders' equity $ 527,078 $ 527,313 $ 540,915 $ 549,449  $ 451,965



                       Riverview Financial Corporation
                         Consolidated Balance Sheets
                    (In thousands except per share data)

                             Sept 30    Jun 30    Mar 31    Dec 31   Sept 30
Average quarterly balances      2016      2016      2016      2015      2015

Assets:
Loans, net:
  Taxable                  $ 388,752 $ 388,062 $ 393,778 $ 344,201 $ 341,147
  Tax-exempt                  11,675    12,446    12,714    11,272     9,958
    Total loans, net         400,427   400,508   406,492   355,473   351,105
Investments:
  Taxable                     65,126    59,354    53,747    35,365    31,786
  Tax-exempt                   6,524    12,203    19,244    19,196    18,132
    Total investments         71,650    71,557    72,991    54,561    49,918
Interest-bearing balances
 with banks                    9,371     9,673     8,998    10,219     9,834
Federal funds sold               199       926       808        15        34
    Total earning assets     481,647   482,664   489,289   420,268   410,891
Other assets                  49,010    50,667    55,785    38,225    37,361
    Total assets           $ 530,657 $ 533,331 $ 545,074 $ 458,493 $ 448,252

Liabilities and
 stockholders' equity:
Deposits:
  Interest-bearing         $ 395,272 $ 392,343 $ 388,317 $ 317,374 $ 322,405
  Noninterest-bearing         70,956    70,342    68,274    57,101    59,795
    Total deposits           466,228   462,685   456,591   374,475   382,200
Short-term borrowings          2,114     9,451    29,593    33,517    17,058
Long-term debt                11,284    11,360     9,440     7,589     6,359
Other liabilities              6,799     6,425     6,615     5,970     6,077
    Total liabilities        486,425   489,921   502,239   421,551   411,694
Stockholders' equity          44,232    43,410    42,835    36,942    36,558
    Total liabilities and
     stockholders' equity  $ 530,657 $ 533,331 $ 545,074 $ 458,493 $ 448,252



                       Riverview Financial Corporation
                             Asset Quality Data
                               (In thousands)

                             Sept 30    Jun 30    Mar 31    Dec 31   Sept 30
                                2016      2016      2016      2015      2015
At quarter end:
Nonperforming assets:
  Nonaccrual loans         $   1,463 $   1,575 $   1,949 $   3,182 $   3,744
  Accruing restructured
   loans                       6,017     6,600     6,626     6,666     6,176
  Accruing loans past due
   90 days or more               133       349       199        89     1,020
  Foreclosed assets              988       842     1,043       885     1,057
Total nonperforming assets $   8,601 $   9,366 $   9,817 $  10,822 $  11,997

Three months ended:
Allowance for loan losses:
Beginning balance          $   3,609 $   3,717 $   4,365 $   3,994 $   4,145
Charge-offs                       34       303       758       652       172
Recoveries                        34        39        11         1        21
Provision for loan losses         29       156        99     1,022
Ending balance             $   3,638 $   3,609 $   3,717 $   4,365 $   3,994



                      Riverview Financial Corporation
               Reconciliation of Non-GAAP Financial Measures
                   (In thousands, except per share data)

                    Sept 30      Jun 30      Mar 30      Dec 31     Sept 30
                       2016        2016        2016        2015        2015
Three months
 ended:

Core net income
 (loss) per
 share:
Net income (loss)
 GAAP            $      971  $      855  $      753  $     (406) $      622
Adjustments:
Less: Gain (loss)
 on sale of
 investment
 securities, net
 of tax                 100         220          (1)          9           7
Add: Acquisition
 related
 expenses, net of
 tax                      9          95          42         350         251
Net income (loss)
 Core            $      880  $      730  $      796  $      (65) $      866

Average common
 shares
 outstanding      3,224,053   3,214,247   3,206,501   2,712,547   2,710,803

Core net income
 (loss) per share$     0.27  $     0.23  $     0.25  $    (0.02) $     0.32

Tangible book
 value:
Total
 stockholders'
 equity          $   44,161  $   43,721  $   42,978  $   42,303  $   36,720
Less: Goodwill        5,408       5,408       4,757       4,757       2,297
Less: Other
 intangible
 assets, net          1,497       1,593       1,425       1,501       1,175
  Total tangible
   stockholders'
   equity        $   37,256  $   36,720  $   36,796  $   36,045  $   33,248

Common shares
 outstanding      3,229,467   3,220,934   3,206,927   3,205,544   2,711,258

Tangible book
 value per share $    11.54  $    11.40  $    11.47  $    11.24  $    12.26

Core return on
 average
 stockholders'
 equity:
Net income (loss)
 GAAP            $      971  $      855  $      753  $     (406) $      622
Adjustments:
Less: Gain (loss)
 on sale of
 investment
 securities, net
 of tax                 100         220          (1)          9           7
Add: Acquisition
 related
 expenses, net of
 tax                      9          95          42         350         251
Net income (loss)
 Core            $      880  $      730  $      795  $      (65) $      866

Average
 stockholders'
 equity          $   44,232  $   43,410  $   42,835  $   36,942  $   36,558

Core return on
 average
 stockholders'
 equity                7.91%       6.76%       7.47%      (0.70%)      9.39%

Return on average
 tangible equity:
Net income (loss)
 GAAP            $      971  $      855  $      753  $     (406) $      622

Average
 stockholders'
 equity          $   44,232  $   43,410  $   42,835  $   36,942  $   36,558
Less: average
 intangibles          6,953       6,592       6,220       4,865       1,736
Average tangible
 stockholders'
 equity          $   37,279  $   36,819  $   36,615  $   32,077  $   34,822

Return on average
 tangible
 stockholders'
 equity               10.36%       9.34%       8.27%      (5.02%)      7.09%

Core return on
 average tangible
 stockholders'
 equity:
Net income (loss)
 GAAP            $      971  $      855  $      753  $     (406) $      622
Adjustments:
Less: Gain (loss)
 on sale of
 investment
 securities, net
 of tax                 100         220          (1)          9           7
Add: Acquisition
 related
 expenses, net of
 tax                      9          95          42         350         251
Net income (loss)
 Core            $      880  $      730  $      796  $      (65) $      866

Average
 stockholders'
 equity          $   44,232  $   43,410  $   42,835  $   36,942  $   36,558
Less: average
 intangibles          6,953       6,592       6,220       4,865       1,736
Average tangible
 stockholders'
 equity          $   37,279  $   36,819  $   36,615  $   32,077  $   34,822

Core return on
 average tangible
 stockholders'
 equity                9.39%       7.97%       8.74%      (0.80%)      9.86%

Core return on
 average assets:
Net income (loss)
 GAAP            $      971  $      855  $      753  $     (406) $      622
Adjustments:
Less: Gain (loss)
 on sale of
 investment
 securities, net
 of tax                 100         220          (1)          9           7
Add: Acquisition
 related
 expenses, net of
 tax                      9          95          42         350         251
Net income (loss)
 Core            $      880  $      730  $      796  $      (65) $      866

Average assets   $  530,657  $  533,331  $  545,074  $  458,493  $  448,252
Core return on
 average assets        0.66%       0.55%       0.59%      (0.06%)      0.77%



                      Riverview Financial Corporation
               Reconciliation of Non-GAAP Financial Measures
                   (In thousands, except per share data)

                                                        Sept 30     Sept 30
                                                           2016        2015
Nine months ended:

Core net income per share:
Net income (loss) GAAP                             $      2,579 $      (348)
Adjustments:
Less: Gain (loss) on sale of investment
 securities, net of tax                                     319         (20)
Add: Acquisition related expenses, net of tax               147       1,815
Net income Core                                    $      2,406 $     1,487

Average common shares outstanding                     3,214,967   2,709,887

Core net income per share                          $       0.75 $      0.55

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