Riverview Bancorp Inc (RVSB) 2009 Q4 法說會逐字稿

Good morning ladies and gentlemen. Thanks for standing by. Welcome total Riverview fourth quarter fiscal 2009 results conference call. During today's presentation all parties will be in a listen-only mode. Following the presentation the conference will be available for questions. (Operator Instructions) This conference is being recorded today, Tuesday, May 5, 2009.

早上好，女士們，先生們。感謝您的支持。歡迎總江景2009財年第四季度業績電話會議。在今天的演示過程中，各方都將處於只聽模式。演講結束後，會議將接受提問。 （操作員說明）本次會議將於今天（2009 年 5 月 5 日星期二）錄製。

I would now turn the conference over to our host, Mr. Pat Sheaffer, Chairman. Please go ahead, sir.

現在我將會議交給我們的東道主、主席帕特·希弗先生。請繼續，先生。

Thanks Chardonnay and good morning folks. I would like to welcome you to Riverview's fourth quarter and fiscal 2009 conference call.

謝謝霞多麗，大家早上好。歡迎您參加 Riverview 第四季度和 2009 財年的電話會議。

First, of course, we have to get the housekeeping out of the way. I need to bring your attention to our earnings report and press release for the quarter end and fiscal year end release yesterday May 4 in particular page four the paragraph concerning forward-looking statements about future performance.

首先，當然，我們必須解決內務管理問題。我需要提請您注意我們昨天 5 月 4 日發布的季度末和財年末收益報告和新聞稿，特別是第四頁有關未來業績前瞻性陳述的段落。

Having said that I'd like to move on. Again today, as in the past we have our Riverview senior management team comprised of Ron Wysaske, President and COO, Dave Dahlstrom, EVP, Chief Credit Officer, Kevin Lycklama, Senior Vice President and CFO, Jim Baldovin, Senior Vice President, Retail banking, John Karas, Chairman, CEO of Riverview Trust Bank. All of these seasoned bank leads will be available for your questions after our formal remarks.

話雖如此，我想繼續前進。今天，與過去一樣，我們的 Riverview 高級管理團隊由總裁兼首席運營官 Ron Wysaske、執行副總裁兼首席信貸官 Dave Dahlstrom、高級副總裁兼首席財務官 Kevin Lycklama、零售銀行業務高級副總裁 Jim Baldovin、Riverview Trust Bank 董事長兼首席執行官 John Karas 組成。在我們正式發言後，所有這些經驗豐富的銀行領導將可以回答您的問題。

Before Ron kicks off his formal remarks I would like to knowledge for a minute on how well Ron, Dave, Kevin and Jim have stepped forward in these trying economic times and have worked so tirelessly and diligently to the protect Riverview while still working with our local customers of over 30,000 households to provide true community banking services. Something that I believe a lot of the media, big banks and government officials have seem to have forgotten. That said, I'll get off my soap box, as I know you want to here from Ron and Dave and the rest of the management team, as they review our interesting and challenging year here at Riverview. Ron?

在 Ron 開始他的正式講話之前，我想先了解一下 Ron、Dave、Kevin 和 Jim 在這個艱難的經濟時期如何向前邁進，並如此不知疲倦、勤奮地工作來保護河景，同時仍然與超過 30,000 個家庭的當地客戶合作，提供真正的社區銀行服務。我相信很多媒體、大銀行和政府官員似乎已經忘記了這一點。也就是說，我會停止我的肥皂劇，因為我知道羅恩和戴夫以及管理團隊的其他成員也想在這裡，因為他們回顧了我們在河景的有趣和充滿挑戰的一年。羅恩？

Okay. Thank you, Pat. I am going to talk about some very familiar items I'm sure to most of you. I'm going to talk about earnings briefly followed by liquidity and then some customer deposit info. We will talk about the banks capital position and then I will just briefly touch on asset quality as I'm sure that Dave Dahlstrom probably will fill in a lot of details in that regard.

好的。謝謝你，帕特。我將談論一些你們大多數人都非常熟悉的項目。我將簡要討論收益，然後是流動性，然後是一些客戶存款信息。我們將討論銀行的資本狀況，然後我將簡要討論資產質量，因為我確信戴夫·達爾斯特羅姆可能會在這方面填寫很多細節。

So as you saw in the press release for the quarter we had a $720,000 loss or $0.07 per share and the quarter included a $5 million loan loss provision. And I would have to say I think that we are pleased with the $5 million loan loss provision to only be showing a $700,000 plus loss of $0.07. For the fiscal year, our loss is $2.7 million or $0.25 per share and again that includes over $16 million of loan loss provision and additionally a $3.4 million impairment charge on a $5 million security. So with those extraneous charges again, $2.7 million or $0.25 per share loss for the year, we think doesn't sound too bad. I think it's an indication that the basic machinery of the Bank is still working, the margin is producing the revenues that we need, our noninterest income of approximately $9 million, of two years in a row, is stable and not shrinking and has good potential for growth. So we are happy, we are actually happy with that given the current situation in the economy with credit, with real estate and as such.

正如您在本季度的新聞稿中看到的那樣，我們虧損了 720,000 美元，即每股虧損 0.07 美元，並且該季度包括了 500 萬美元的貸款損失撥備。我不得不說，我認為我們對 500 萬美元的貸款損失準備金僅顯示 70 萬美元加上 0.07 美元的損失感到滿意。本財年，我們的損失為 270 萬美元，即每股 0.25 美元，其中包括超過 1600 萬美元的貸款損失準備金，以及 500 萬美元證券的 340 萬美元減值費用。因此，考慮到這些額外費用，今年 270 萬美元或每股虧損 0.25 美元，我們認為聽起來還不錯。我認為這表明銀行的基本機制仍在運轉，利潤正在產生我們需要的收入，我們的非利息收入連續兩年約為 900 萬美元，穩定且沒有萎縮，具有良好的增長潛力。所以我們很高興，考慮到目前信貸、房地產等經濟形勢，我們實際上對此感到滿意。

Now we can't really assume away taxes and loan loss provisions but if you do, look at inside the numbers, the recent quarter did produce $4.1 million before taxes and loan loss provisions, and that is up from $3.4 million in the prior quarter. And up from the prior year as well. So again, the fundamental business model is working. And we just need to keep our heads down and keep doing the business of banking that we do. And deal with the issues that are in front of us.

現在我們不能真正假設扣除稅收和貸款損失準備金，但如果你這樣做，看看裡面的數字，最近一個季度的稅金和貸款損失準備金前確實產生了 410 萬美元，高於上一季度的 340 萬美元。並且比上一年也有所增加。再說一次，基本的商業模式正在發揮作用。我們只需要保持低調，繼續做我們所做的銀行業務。並處理擺在我們面前的問題。

Now in terms of management preparedness, we are focusing on the things that we think are critical and important, and naturally one of the most important things is our liquidity position, as cash is our life blood as it is for any bank. We currently have unused sources of cash of over $300 million available to us and that's not counting obviously customer deposits as a source of cash, but we are talking about lines available from the Federal Home Loan Bank of Seattle, The Federal Reserve and the Pacific Coast Bankers Bank. $300 million I think covers us for any unforeseen liquidity needs.

現在就管理準備而言，我們正在關注我們認為關鍵和重要的事情，當然最重要的事情之一就是我們的流動性狀況，因為現金是我們的生命線，就像任何銀行一樣。目前，我們擁有超過 3 億美元的未使用現金來源，這顯然不包括作為現金來源的客戶存款，但我們正在談論來自西雅圖聯邦住房貸款銀行、美聯儲和太平洋海岸銀行家銀行的可用額度。我認為 3 億美元可以滿足我們任何不可預見的流動性需求。

On the customer deposit front, we are solid and stable with growth in all the right areas. We are focusing on long-term relationships. We have continued to build our cash management services for corporate checking and corporate banking services. We also have started up a merchant bankcard services with a veteran bankcard officer. And that is growing and we are very excited about that the prospects of that to generate additional noninterest income for the Bank. And naturally we also are implemented all of the necessary products, remote capture products, et cetera, to boost our profile in our markets for banking services. Another note and that is as of today we have zero brokered deposits. So what we have in deposits are definitely core customer deposits. However, brokered deposits can be a source of liquidity, if needed. We don't need it right now but we've got that as a stand-by source, if we do.

在客戶存款方面，我們穩健穩定，在所有正確領域都有增長。我們注重長期關係。我們繼續為企業支票和企業銀行服務打造現金管理服務。我們還與一位經驗豐富的銀行卡官員一起啟動了商業銀行卡服務。而且這一數字正在增長，我們對為銀行創造額外非利息收入的前景感到非常興奮。當然，我們還實施了所有必要的產品、遠程捕獲產品等，以提升我們在銀行服務市場的形象。另請注意，截至今天，我們的經紀存款為零。所以我們的存款肯定是核心客戶存款。然而，如果需要的話，經紀存款可以成為流動性來源。我們現在不需要它，但如果需要的話，我們可以將其作為備用來源。

Let's turn and talk a little bit about capital. If you saw in our press release we were able to improve our risk-based capital ratio from 1073 at the end of the December quarter to 1146 at the end of the fiscal year March 31. There was a combination of things that helped increase that. The majority of that capital came directly from our holding company. Something in excess of $3.5 million. We also had an improvement in that capital number as a result of the accounting treatment for the security that I mentioned before in the other than temporary impairment. And I think there was about $1.5 million of additional capital as a result of that accounting treatment. However, that accounting treatment does not affect the income statement. So we still show that $3.5 million impairment charge on the income statement. So the bottom line is, the bottom bottomline I guess you'd say, is that from a capital perspective that we are strong, we are getting stronger and we believe that over the course of the next year we will be able to meet our goals with respect to capital, capital adequacy and, in fact ,well capitalized position.

我們來談談資本吧。如果您在我們的新聞稿中看到，我們能夠將基於風險的資本比率從 12 月季度末的 1073 提高到 3 月 31 日財年末的 1146。有多種因素共同推動了這一比率的提高。大部分資本直接來自我們的控股公司。超過 350 萬美元。由於我之前提到的除臨時減值之外的證券的會計處理，我們的資本數字也有所改善。我認為這種會計處理帶來了大約 150 萬美元的額外資本。然而，這種會計處理並不影響損益表。因此，我們仍然在損益表上顯示 350 萬美元的減值費用。所以最重要的是，我想你會說，從資本的角度來看，我們很強大，我們正在變得更強，我們相信在明年，我們將能夠實現我們在資本、資本充足率以及事實上資本充足方面的目標。

The last thing I'll touch on just briefly is asset quality and as I said Dave Dahlstrom will talk in more detail about that. Clearly the problems that we are having with respect to asset quality are squarely centered in the land development and some speculative construction problems as well. But the major problem, for us any way, has been the land development. So we are putting a lot of effort and emphasis into managing those issues and particular credits and we are having our successes and we are seeing improvement.

我要簡單提及的最後一件事是資產質量，正如我所說，戴夫·達爾斯特羅姆將更詳細地談論這一點。顯然，我們在資產質量方面遇到的問題主要集中在土地開發和一些投機性建設問題上。但無論如何，對我們來說，主要問題是土地開發。因此，我們投入了大量的精力和重點來管理這些問題和特定的信用，我們正在取得成功，我們正在看到進步。

We have the largest segment of our loan portfolio, actually, is under the general category of commercial real estate. And I've seen a lot of things in the news regarding commercial real estate and concerns, I think. We've done a lot of analysis and a lot of review of the commercial real estate portfolio that we have and I can state categorically right now we have absolutely no problems with that segment of our loan portfolio presently. Now that doesn't say that things can't change and that we may see problems down the road. But presently, we do not have problems with commercial real estate. We have, as I said, we've done a lot of analysis and we've stress tested the portfolio and the majority of those loans have owner or are owner-occupied in excess of 50% of the loan. So anyway I think that's a positive going forward.

實際上，我們貸款組合中最大的部分是在商業房地產的一般類別下。我想，我在新聞中看到了很多有關商業房地產和擔憂的事情。我們對我們擁有的商業房地產投資組合進行了大量分析和審查，我現在可以明確地說，我們目前貸款投資組合的這一部分絕對沒有問題。但這並不是說事情不能改變，我們可能會在未來看到問題。但目前我們的商業地產還沒有出現問題。正如我所說，我們已經做了很多分析，並對投資組合進行了壓力測試，其中大多數貸款的所有者或所有者佔有貸款的比例超過 50%。所以無論如何，我認為這是一個積極的進展。

We have a strong 18 branch banking and financial franchise that serves the Vancouver, Portland metro area. We have 250 banking professionals who strive to deliver quality service and are working on preparing our Company for the next 86 years. So now back to Pat Sheaffer.

我們擁有強大的 18 個分行銀行和金融專營權，為溫哥華、波特蘭都會區提供服務。我們擁有 250 名銀行專業人士，他們致力於提供優質服務，並致力於為公司未來 86 年做好準備。現在回到帕特·希弗。

Thanks, Ron. Although I don't plan on staying here for the next 86, maybe a portion of it.

謝謝，羅恩。雖然我不打算在接下來的86年裡住在這裡，但也許是其中的一部分。

I know that credit is always an issue as I listen to other conference calls this quarter. So Dave Dahlstrom has a few prepared remarks that he'd like to make and as we go through this and then we will open it up for questions. Dave?

當我聽到本季度的其他電話會議時，我知道信用始終是一個問題。戴夫·達爾斯特羅姆 (Dave Dahlstrom) 準備了一些他想要發表的言論，當我們討論這個問題時，我們將開放提問。戴夫？

Thank you, Pat. Just a minor correction, you don't normally correct your boss, but Ron was a little bit incorrect in terms of our owner occupied, it's 30% portfolio, but even that is quite good in terms of those companies that are in those properties.

謝謝你，帕特。只是一個小小的更正，你通常不會糾正你的老闆，但羅恩在我們的所有者佔用方面有點不正確，它是 30% 的投資組合，但即便如此，對於那些擁有這些財產的公司而言，這也相當不錯。

A few highlights I think are important. They are in the press release but I'd like to go over them. About 68% of our NPAs are in land or land development and spec, as well as 80% of the charge-offs that we've taken over the last year are within those same categories. That also relates obviously to REO and as you can see our REO has increased over the last quarter. The good news of that is that we've worked through the legal process in a lot of those now, and now we control those assets to get selling those assets as quickly as we possibly can. We've also then had those appraised before we take those into REO and that will demonstrate some of those larger charge-offs, to bring those down to the current values that we received on those appraisals.

一些我認為很重要的亮點。它們在新聞稿中，但我想回顧一下。我們約 68% 的 NPA 涉及土地或土地開發和規範，去年我們受理的沖銷中 80% 屬於同一類別。這顯然也與 REO 有關，正如您所看到的，我們的 REO 在上個季度有所增加。好消息是，我們現在已經完成了其中許多資產的法律程序，現在我們控制了這些資產，以便盡快出售這些資產。然後，在將這些數據納入 REO 之前，我們還會對這些數據進行評估，這將展示一些較大的沖銷，以將其降低到我們在這些評估中收到的當前值。

Additionally, we have not made a land or development loan for just about 18 months, except for one work out situation, and that's pretty involved transaction and with some good guarantors in a new company involved in an older project. Also, if you look at the press release we did a breakdown of our NPAs by location, as well as by type of loans. From that you can see that the major part of our problems are within our own market area, which you can look at that as positive or negative. I look at from this time a positive standpoint in that we know the market, we know the people here, we know the realtors involved, we know the developers, we know the builders so that we can work towards moving information those REO assets.

此外，我們已經有大約 18 個月沒有發放土地或開發貸款了，除了一次解決情況，這是一項相當複雜的交易，而且一家新公司的一些良好擔保人參與了一個舊項目。此外，如果您查看新聞稿，我們會按地點和貸款類型對不良資產進行細分。由此您可以看出，我們的問題主要集中在我們自己的市場區域內，您可以將其視為積極的或消極的。我從這個時候看一個積極的立場，因為我們了解市場，我們了解這裡的人，我們了解所涉及的房地產經紀人，我們了解開發商，我們了解建築商，這樣我們就可以努力轉移這些 REO 資產的信息。

Just a little bit of commentary on our C RE portfolio to follow up to Ron's comments. We have no classified assets in there. We have zero delinquencies on our commercial real estate portfolio is about 40% of the total loan portfolio and absolutely no delinquencies, as I stated. We did a commercial stress test on our real estate portfolio, on anything over $1 million we looked at the original NOI, the original appraisals, the vacancies, the debt service coverages and went through some calculations in order to see what exposure we might have and it came out excellent. In fact, our average loan to value is about 60% on our CRE which leaves you a lot of room for your NOI as relates to impacting increased vacancies and therefore still providing an adequate coverage for debt service. Our average debt service on that portfolio is about 1.4 and that is of that recent stress test that we just did and I think that holds up in light of what's going on out there.

對我們的 C RE 投資組合進行一點評論，以跟進 Ron 的評論。我們那裡沒有機密資產。正如我所說，我們的商業房地產投資組合的拖欠率為零，約佔總貸款組合的 40%，並且絕對沒有拖欠。我們對我們的房地產投資組合進行了商業壓力測試，對於超過 100 萬美元的項目，我們查看了原始 NOI、原始評估、空缺職位、償債覆蓋範圍，並進行了一些計算，以了解我們可能擁有哪些風險敞口，結果非常好。事實上，我們的 CRE 的平均貸款價值約為 60%，這為您的 NOI 留下了很大的空間，因為這與影響空缺增加有關，因此仍然為償債提供足夠的保障。我們對該投資組合的平均償債率為 1.4 左右，這是我們最近進行的壓力測試的結果，我認為考慮到目前正在發生的情況，這一點是成立的。

A couple other areas is we moved towards towards reducing our spec single-family portfolio, 28% over the past year from a little, right about $81 million down to $58 million. In our press release, we have construction in there but that does include a slight increase but that increase was in commercial construction not in single-family construction. In addition to the reserve that we have taken that's raised us up to about 2.15% of total loans, that's after $4.3 million charge-offs in the last quarter alone. So I think we've got a fair reserve compared to peers. And overall the news is still bad in land especially single-family but we are taking all the steps we can in order to work through these things as quickly as we possibly can and trying to minimize the overall impact of the bank over the long-term.

其他幾個方面是，我們正在努力減少我們的規格單戶投資組合，去年減少了 28%，從大約 8100 萬美元減少到 5800 萬美元。在我們的新聞稿中，我們在那裡有建築，但確實包括略有增加，但這種增加是商業建築而不是單戶建築。除了我們採取的準備金外，這還使我們的貸款總額增加了約 2.15%，這是在上個季度沖銷 430 萬美元之後的結果。所以我認為與同行相比，我們有公平的儲備。總體而言，土地方面的消息仍然很糟糕，尤其是單戶住宅，但我們正在採取一切措施，以便盡快解決這些問題，並努力將銀行的長期總體影響降到最低。

Some things that we have done related to problem assets as well as REO, we've either reallocated or hired five new FTE to work on problem assets over the past six months. We've instituted a property management of our REO to ensure that the quality of the property is there while it's pending sale. We've implemented some aggressive marketing support for borrowers before they get to REO, in order to avoid taking it to REO, and that includes providing financing packages for buyers of properties that I would consider lower interest rates than normal standards out there. But with good borrowers but lower interest rates to attract them.

我們所做的一些事情與問題資產和 REO 相關，在過去六個月中，我們重新分配或僱用了 5 名新的 FTE 來處理問題資產。我們對 REO 實行了物業管理，以確保待售物業的質量。我們在藉款人到達 REO 之前為他們實施了一些積極的營銷支持，以避免將其帶到 REO，其中包括為房產買家提供融資方案，我認為這些融資方案的利率低於正常標準。但有良好的借款人但較低的利率來吸引他們。

We've also-- we've got comprehensive marketing packages for each of our REO properties. They are on our website and actually if you go look you can see that there's a couple of pending sales on there. We also have incentive plans for our employees if they move a property for us they receive a payment from that referral to close it. So those are the things that we are doing and just some brief highlights and I'll turn it back over to Pat.

我們還為我們的每個 REO 資產提供了全面的營銷方案。它們在我們的網站上，實際上，如果您查看一下，您會發現那裡有一些待售的商品。我們還為員工製定了激勵計劃，如果他們為我們搬遷房產，他們會從該推薦中獲得一筆付款以關閉該房產。這些就是我們正在做的事情以及一些簡短的亮點，我會將其轉回給帕特。

Thanks, Dave, I really appreciate you get that report. Chardonnay, would you like to open the line for questions other than just listening to us drone on.

謝謝，戴夫，我真的很感謝你收到這份報告。霞多麗，除了聽我們喋喋不休之外，你還想問其他問題嗎？

Thank you, sir. We'll now begin the question and answer session. (Operator Instructions) Our first question comes from Ryan Whitmore with Howe Barns

謝謝你，先生。我們現在開始問答環節。 （操作員說明）我們的第一個問題來自 Howe Barns 的 Ryan Whitmore

Hey guys, how are you doing? Could you give me a little color on your overall delinquencies, your 30 days, 89-days in the quarter.

嘿伙計們，你們好嗎？您能否詳細說明一下您的整體拖欠情況，即本季度 30 天和 89 天的拖欠情況。

That sounds like a good question for Dave .

這對戴夫來說聽起來是個好問題。

Basically you can look at our nonperforming and that takes a good portion of it--you can see the number in our press release, roughly $27 million so you can do the math on that at 3.4. Approximately right around $10 million more of additional delinquencies between the 30 and 89-day category.

基本上你可以看看我們的不良資產，這佔了很大一部分——你可以在我們的新聞稿中看到這個數字，大約是 2700 萬美元，所以你可以計算一下這個數字是 3.4。 30 天和 89 天類別之間的額外拖欠額大約多出約 1000 萬美元。

Just to clarify that was 30% of your CRE portfolio is owner occupied, is that correct?

只是想澄清一下，您的 CRE 投資組合中有 30% 是所有者佔用的，這是正確的嗎？

Yes, sir.

是的先生。

3-0? Allright. Thank you very much.

3-0？好的。非常感謝。

(Operator Instructions) There are no further questions at this time. Please continue.

（操作員說明） 目前沒有其他問題。請繼續。

Thanks, Chardonnay and thanks for you folks who listened in. We invite you, if you think of something afterwards, please call us any time. We are always available to answer questions that you might have. 360-693-6650 is the direct line in here. Chardonnay, I have nothing else.

謝謝霞多麗，謝謝各位聽眾。我們邀請您，如果您事後想到了什麼，請隨時給我們打電話。我們隨時可以回答您可能遇到的問題。 360-693-6650 是此處的直線電話。霞多麗，我沒有別的了。

Thank you, this includes the Riverview fourth quarter fiscal 2009 year end conference call. If you would like to listen to a replay of today's conference, please dial (303)590-3030, access code 4059621. ACT would like to thank you for your participation. You may now disconnect.

謝謝，這包括 Riverview 2009 財年第四季度年終電話會議。如果您想收聽今天會議的重播，請撥打(303)590-3030，接入碼4059621。ACT 感謝您的參與。您現在可以斷開連接。