MBank and Riverview Community Bank Announce Signing of a Purchase and Assumption Agreement
OREANDA-NEWS. Riverview Bancorp, Inc. (NASDAQ:RVSB) (“Riverview Bancorp”), and its wholly owned subsidiary, Riverview Community Bank (“Riverview”), and Merchants Bancorp and its wholly owned subsidiary MBank, announced that they have entered into a Purchase and Assumption Agreement (the “Agreement”). Pursuant to the Agreement, Riverview will acquire certain assets and assume certain liabilities of MBank in a cash transaction. The Agreement also provides that Riverview Bancorp will assume the obligations of Merchants Bancorp’s trust preferred securities.
As part of the transaction, Riverview will acquire certain assets of MBank, including approximately $130 million in net loans and will assume certain liabilities, including approximately $128 million of MBank’s customer deposits (utilizing June 30, 2016 financial information). The transaction is expected to be accretive to earnings in the first full year and we anticipate it will close in the quarter ending March 31, 2017 subject to customary closing conditions, including regulatory approval and the approval of Merchants Bancorp's shareholders. Additional information concerning the transaction, including an investor presentation, will be contained in a Form 8-K filed by Riverview Bancorp with the SEC and also will be available on Riverview’s website at http://investors.riverviewbank.com/Docs.
“This is a natural geographic expansion for Riverview, fitting well into our strategy of increasing market share in Oregon. Our two banks have identical missions – to provide our clients with the local, personal service you can only receive from a true community bank. We are excited to welcome MBank’s customers,” said Pat Sheaffer, chairman and chief executive officer of Riverview.
Jef Baker, president and chief executive officer of MBank, added, “It’s a wonderful fit, where product offerings are similar and the resources available to our customers are greatly enhanced, including additional branches and a full service trust and asset management company. Riverview and MBank share the same passion for customer service. I want to thank MBank’s customers and employees for their continued loyalty and support.”
All MBank locations will continue to operate as MBank branches until the transaction is completed. Upon closing, the MBank branches will become part of Riverview Community Bank’s branch network. Following the transaction, no banking services will be provided by MBank.
About Riverview Bancorp, Inc.:
Riverview Bancorp, Inc. is headquartered in Vancouver, Washington – just north of Portland, Oregon on the I-5 corridor. With assets of $932 million at June 30, 2016, it is the parent company of the 93 year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 17 branches, including twelve in the Portland-Vancouver area and three lending centers. For the past three years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.
About Merchants Bancorp:
Merchants Bancorp is headquartered in Gresham, Oregon and is the bank holding company for MBank, an Oregon chartered commercial bank with three branch offices located in Gresham, Portland (on Stark Street near I-205) and Lake Grove, Oregon.