RiverBank, the nine-year-old boutique institution here, has reported a net loss of $1.6 million for 2014, a step backward after recording net income of $111,000 the previous year to rebound from losses of $3.9 million in 2012, $686,000 in 2011, and $2.8 million in 2010.

The bank reported healthy increases in total deposits, loans, and assets, which stood at $100.6 million, $96.6 million, and $113.2 million, respectively, at the end of last year. However, CEO Daniel Byrne says it was hurt by write-downs on a number of “inherited” assets that it had on the books before he took over as its top executive two years ago.

“We had a handful of loans that showed some deterioration, two of which resulted in sizable losses,” Byrne says, adding that the institution took write-downs on some bank-owned properties to reflect current market conditions.

However, the bank’s capital remains strong, he says, adding, “We’re continuing to pursue our growth strategy. We think we’ve take care of credit issues.”

The poor performance follows on the heels of the positive news last summer that RiverBank Holding Co. had garnered $2.9 million from a private stock offering, which it said would strengthen the bank’s capital position while supporting its growth strategies. 

In a Journal story about that private placement, Byrne said, “Our investors see the value being created by our mobile branching and e-banking strategies and the opportunities for a local community bank to meet the banking needs of business customers in Eastern Washington.”

Byrne had been longtime chief financial officer at Sterling Financial Corp. before coming out of retirement to become CEO at RiverBank in 2013. He took over the position formerly held by Clyde B. “Chuck” Brooks Jr., who died unexpectedly earlier that year after a brief battle with cancer.

In last year’s offering, RiverBank sold 750,000 shares of common stock at a price of $4 per share to accredited investors, including the bank’s board of directors, management, and new investors, Byrne said at the time. He said the new infusion of capital would be used to promote continued growth in lending.

In August 2011, RiverBank entered into a consent order with the Federal Deposit Insurance Corp. and the Washington state Department of Financial Institutions that placed it under tighter regulatory scrutiny. The order required RiverBank to hire and retain qualified managers, notify regulators when it planned to add or replace board members or senior executive officers, and increase the board’s participating in bank affairs. It also required it to increase its capital, keep a fully funded allowance for loan or lease losses, reduce troubled assets, and develop a financial plan that set specific goals in several areas.

The consent order was lifted last year.

The bank, which has about 30 employees, occupies space on the top floors of a five-story building at 202 E. Spokane Falls Blvd., plus has a ground floor branch there.