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8-K - FORM 8-K - Riverview Financial Corpd928495d8k.htm

EXHIBIT 99.1

The following update relates to certain programs recently introduced by the Company to identify potential risk within its credit portfolio and to help mitigate the economic impact of the Coronavirus pandemic on its customers:

Riverview Financial Corporation (the “Company” or “Riverview”) participated in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), Paycheck Protection Program (“PPP”), a multi-billion dollar specialized low-interest loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration (“SBA”). The PPP provides 100% SBA guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related and other qualified business operating costs. Through May 18, 2020, Riverview closed 1,234 PPP loans totaling $271.9 million, resulting in pre-tax SBA origination fees approximating $7.5 million. The Company is primarily utilizing the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) to meet the funding needs of PPP loans.

Riverview implemented short-term modification programs that comply with regulatory and accounting guidance to provide temporary payment relief to those borrowers directly impacted by the Coronavirus who were not more than 30 days past due at the time we implemented our modification programs. These programs allow for a deferral of all, or a portion of, monthly payments for a maximum of 180 days on a cumulative and successive basis. The deferred payments, including interest accrued during the deferral period, if applicable, result in the extension of the loan due date by the number of months deferred. As of April 30, 2020, we have granted temporary modifications to consumer and commercial loan customers for 355 loans with outstanding balances totaling $185,188, or 20.9% of total loan balances outstanding. Depending on the circumstances and request from the borrower, modifications were made to defer all payments for loans requiring principal and interest payments, or to defer principal payments only and continue to collect interest payments, or to defer all interest payments for loans requiring interest only payments. Weighted average loan to value ratios are computed for real estate loans for the total portfolio of each loan classification and for loans modified within each loan classification using the most recent appraised values. The total portfolio weighted average loan to value ratio for residential real estate was omitted as it was determined to be immaterial to the overall credit risk profile of the Company. The following table summarizes information concerning loan modifications made as of April 30, 2020, by loan classification:

 

     Number
of
Loans
     Amount      % of
Outstanding
    Weighted Average Loan to Value     Aggregate Deferred Payments  
    % of Total
Loan
Classification
    % of Loans
Modified
    Principal      Interest  

Commercial

     83      $ 24,522        20.2       $ 631      $ 315  

Construction:

                 

Commercial

     14        10,013        18.3     69.6     70.9     50        128  

Hospitality

     3        15,761        88.9     65.6     72.1     55        185  
  

 

 

    

 

 

          

 

 

    

 

 

 

Total

     17        25,774        35.5         105        313  
  

 

 

    

 

 

          

 

 

    

 

 

 

Commercial Real Estate:

                 

Multi Family

     13        4,786        8.4     66.3     66.4     74        44  

Owner Occupied

     69        30,897        24.5     63.0     59.1     623        322  

Non-Owner Occupied

     29        48,413        21.8     62.2     69.5     1,481        304  

Hospitality

     7        21,930        56.6     65.0     58.6     241        276  

Agricultural

     10        6,725        20.5     49.6     58.3     102        124  
  

 

 

    

 

 

          

 

 

    

 

 

 

Total

     128        112,751        23.7         2,521        1,070  
  

 

 

    

 

 

          

 

 

    

 

 

 

Residential Real Estate

     116        21,897        10.4       61.4     307        320  

Consumer

     11        244        3.3         8        6  
  

 

 

    

 

 

          

 

 

    

 

 

 

Total

     355      $ 185,188        20.9       $ 3,572      $ 2,024