For many financial institutions, transitioning from a thrift bank to a state-chartered commercial bank might require a significant overhaul of internal and external operations. However, for Riverview Bancorp Inc., parent company of Riverview Community Bank, it’s a transition that will likely go unnoticed by the majority of its customers.
“I don’t think anything will feel different from the outside,” explained Riverview Executive Vice President Kim Capeloto. “From a customer’s perspective and from a community perspective, it will be completely transparent; there won’t be any change at all. From a business line perspective it will be transparent as well, because we already are doing business loans; we are a true commercial bank.”
Riverview, which recently announced its fifth consecutive profitable quarter, applied to the Washington Department of Financial Institutions to convert to a state-chartered commercial bank earlier this month. Capeloto said the conversion from thrift to commercial is necessary to “make sure we’re playing on the same playing field as banks that are like us.”
“Because we have a thrift charter, our peers that we’re measured against have completely different missions and completely different mixes of business in their portfolios,” he said.
Capeloto said the change, which he hopes will become official sometime next month, should have a positive impact within the investment community.
“With investors not having to try to convert our information from thrift information to commercial bank information, it will be much easier to say, ‘Where are these guys with regard to their real peers?’” he said.
According to Capeloto, an uptick in Riverview’s stock prices may follow the switch to a state-chartered commercial bank.
“I think there is a potential for that,” Capeloto explained. “We’ve heard that from various investment individuals and investment firms that [the conversion] certainly will help. We’re a pretty undervalued stock right now and that’s a great thing if you’re a buyer, but at the same time I think being able to be accurately compared to your correct peers makes a huge difference.”
Riverview Community Bank operates 17 branches, including twelve in the Portland-Vancouver area, and three lending centers. In addition, the institution recently announced a new branch to be located in Gresham. Construction on that new location is expected to begin in Fall/Winter 2011.
