Core Viewpoint - Riverview Bancorp reported a decline in earnings for the third fiscal quarter of 2025, with net income of $1.2 million, down from $1.6 million in the previous quarter and $1.5 million a year ago, reflecting challenges in loan growth despite improvements in net interest margin and loan production [1][2][3]. Financial Performance - Earnings per diluted share for the third fiscal quarter were $0.06, compared to $0.07 in the previous quarter and the same quarter last year [1]. - For the first nine months of fiscal 2025, net income was $3.8 million, or $0.18 per diluted share, down from $6.8 million, or $0.32 per diluted share, in the same period of fiscal 2024 [2]. Income Statement Review - Net interest income increased to $9.4 million in the current quarter from $8.9 million in the preceding quarter and $9.3 million a year ago, driven by higher yields on interest-earning assets [5][8]. - The net interest margin (NIM) improved to 2.60%, a 14 basis point increase from the previous quarter and an 11 basis point increase from the same quarter last year [6][8]. - Non-interest income was $3.3 million during the third fiscal quarter, down from $3.8 million in the preceding quarter but up from $3.1 million a year ago [11]. Balance Sheet Review - Total loans decreased by $15.9 million to $1.05 billion at December 31, 2024, primarily due to two large loan payoffs, although new loan originations increased to $31.1 million [15]. - Total deposits decreased by $18.5 million to $1.22 billion, remaining unchanged compared to a year ago [18]. - Shareholders' equity was $158.3 million at December 31, 2024, down from $160.8 million three months earlier [20]. Asset Quality - Non-performing assets were $469,000, or 0.03% of total assets, with non-performing loans totaling $168,000, or 0.02% of total loans [21][22]. - The allowance for credit losses was $15.4 million, representing 1.47% of total loans [24]. Capital and Liquidity - Riverview maintained a total risk-based capital ratio of 16.47% and a Tier 1 leverage ratio of 10.86% at December 31, 2024, indicating strong capital levels [25]. - The company had approximately $450.1 million in available liquidity, including $164.4 million of borrowing capacity from the FHLB [26][27]. Stock Repurchase Program - The Board of Directors adopted a stock repurchase program allowing the company to repurchase up to $2.0 million of its outstanding shares, with 200,073 shares repurchased at an average price of $5.43 during the third quarter [28].

Core Insights - Riverview Bancorp, Inc. has appointed Charmaine Lightheart as EVP/Chief Retail and Digital Engagement Officer, recognizing her extensive experience in the banking sector and her commitment to innovation in retail banking and client services [1][2]. Company Overview - Riverview Bancorp, Inc. is headquartered in Vancouver, Washington, with assets totaling $1.55 billion as of September 30, 2024. The company operates Riverview Bank and Riverview Trust Company, providing community banking services through 17 branches, primarily in the Portland-Vancouver area [7]. Leadership and Community Engagement - Charmaine Lightheart has nearly 20 years of banking experience, having held various leadership roles at multiple banks before joining Riverview Bank. She is also actively involved in her community, serving on boards and committees, including the Board of Directors for NW Furniture Bank [3][4]. - Lightheart expressed her enthusiasm for her new role, emphasizing her commitment to serving both employees and clients, and contributing to community growth [5].

Company Overview - Riverview Bancorp, Inc. is headquartered in Vancouver, Washington, with assets totaling $1.55 billion as of September 30, 2024 [3] - The company operates Riverview Bank and Riverview Trust Company, providing community banking services through 17 branches, including 13 in the Portland-Vancouver area and 3 lending centers [3] - Riverview has been recognized as the Best Bank by The Vancouver Business Journal and The Columbian for the past 10 years [3] Dividend Announcement - On December 18, 2024, Riverview's Board of Directors approved a quarterly cash dividend of $0.02 per share, unchanged from the previous quarter [2] - The dividend is set to be payable on January 14, 2025, to shareholders of record as of January 2, 2025 [2] Forward-Looking Statements - The company’s press release includes forward-looking statements regarding its financial condition, results of operations, and future performance [1] - These statements are subject to risks and uncertainties, and should not be relied upon excessively [1]

Financial Performance - For the three months ended September 30, 2024, net income was $1,557,000, a decrease of 37.0% compared to $2,472,000 for the same period in 2023[10]. - Basic earnings per share for the three months ended September 30, 2024, was $0.07, down from $0.12 in 2023[8]. - Total comprehensive income for the three months ended September 30, 2024, was $5,261,000, compared to a loss of $707,000 in 2023[10]. - For the six months ended September 30, 2024, net income was $2,523, down from $5,315 in the same period of 2023[15]. - The Company reported net income for the three months ended September 30, 2024, was $1.6 million, or $0.07 per diluted share, a decrease from $2.5 million, or $0.12 per diluted share, for the same period in the prior year[185]. Income and Expenses - Total interest and dividend income for the six months ended September 30, 2024, was $29,341,000, an increase of 8.1% from $27,992,000 in 2023[8]. - Net interest income after provision for credit losses for the three months ended September 30, 2024, was $8,842,000, down 10.3% from $9,851,000 in 2023[8]. - Non-interest income for the six months ended September 30, 2024, totaled $7,208,000, an increase of 7.7% compared to $6,692,000 in 2023[8]. - Total non-interest expense for the three months ended September 30, 2024, was $10,701,000, an increase of 6.1% from $10,089,000 in 2023[8]. - Interest expense totaled $6.0 million for the three months ended September 30, 2024, an increase of $1.8 million from $4.2 million for the same period in the prior year[192]. Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2024, was $100,000, compared to no provision in the same period of 2023[8]. - The allowance for credit losses (ACL) for loans was $15.466 million as of September 30, 2024, slightly up from $15.364 million at March 31, 2024[49]. - The Company recorded a provision for credit losses of $100,000 for the six months ended September 30, 2024, compared to none for the same period in the prior fiscal year[171]. - Nonperforming loans increased to $450,000 at September 30, 2024, from $178,000 at March 31, 2024[203]. Loans and Deposits - As of September 30, 2024, the Company had total loans of $1,060.977 million, an increase from $1,024.013 million as of March 31, 2024, representing a growth of approximately 3.6%[49]. - The net increase in deposits for the six months ended September 30, 2024, was $5,820, contrasting with a decrease of $(25,451) in the same period of 2023[15]. - Total loans receivable increased to $1,060,977 million, up from $1,060,977 million in the previous year[66]. - Total deposits increased by $5.8 million to $1.24 billion at September 30, 2024, compared to $1.23 billion at March 31, 2024, with core branch deposits accounting for 98.4% of total deposits[148]. Investment Securities - The amortized cost of investment securities as of September 30, 2024, was $371,620, with an estimated fair value of $328,822[35]. - The fair value of investment securities held to maturity was estimated at $195,869 as of September 30, 2024, down from $229,510 on March 31, 2024[97]. - The Company’s investment securities available for sale had an estimated fair value of $2.2 million as of September 30, 2024, down from $2.4 million at March 31, 2024[47]. Shareholder Equity and Stock Repurchase - Cash dividends on common stock for the three months ended September 30, 2024, were $0.02 per share, totaling $421, compared to $0.06 per share totaling $1,267 in 2023[13]. - The Company repurchased a total of 394,334 shares at an average cost of $6.34 per share for a total cost of $2.5 million under the November 2022 repurchase program[32]. - The Company authorized a new stock repurchase program to repurchase up to $2.0 million of its outstanding shares, effective October 30, 2024[33]. - Shareholders' equity increased by $5.2 million to $160.8 million at September 30, 2024, primarily due to net income of $2.5 million and a decrease in unrealized holding losses[151]. Liquidity and Capital - The Bank was categorized as "well capitalized" under the FDIC's regulatory framework as of September 30, 2024, exceeding all regulatory capital requirements[155]. - The Bank's total available liquidity was $820.8 million, or 53.0% of total assets, as of September 30, 2024[163]. - The Company maintains a credit facility with the FRB with an available borrowing capacity of $299.5 million, subject to sufficient collateral[162]. Asset Management and Fees - Asset management fees for the three months ended September 30, 2024, were $1,433, up from $1,273 in 2023, representing a growth of 12.6%[104]. - The company reported a decrease in loan-related fees from $261 in Q3 2023 to $87 in Q3 2024, indicating a decline of approximately 66.7%[104]. Economic Outlook and Risks - The company highlighted that a further decline in economic conditions could result in a material increase in the allowance for credit losses[202]. - The Company expects cash expenditures of approximately $339,000 for capital investment in premises and equipment during the remainder of fiscal 2025[167].

Financial Performance - Riverview Bancorp reported net income of $1.6 million, or $0.07 per diluted share, for Q2 FY2025, down from $2.5 million, or $0.12 per diluted share, in the same quarter last year[1]. - Net income (GAAP) for the quarter was $1,557 thousand, compared to $966 thousand in the previous quarter and $2,523 thousand in the same quarter last year[10]. - Net income for the quarter was not specified, but the overall financial health appears stable with a focus on maintaining asset quality[14]. - Basic earnings per share for the three months ended September 30, 2024, was $0.07, compared to $0.05 for the previous quarter, reflecting a 40% increase[15]. - Basic earnings per share increased to $0.07 from $0.05 in the previous quarter and $0.12 a year ago[24]. Income and Revenue - Net interest income for the quarter was $8.9 million, slightly up from $8.8 million in the previous quarter but down from $9.9 million a year ago[2]. - Non-interest income rose to $3.8 million, an increase of $474,000 from the previous quarter and the same quarter last year[2]. - Total interest and dividend income for the three months ended September 30, 2024, was $14,942,000, an increase of 6.5% compared to $14,035,000 for the same period in 2023[15]. - Net interest income after provision for credit losses was $8,842,000 for the three months ended September 30, 2024, compared to $9,851,000 for the same period in 2023, reflecting a decrease of 10.2%[15]. - Non-interest income for the three months ended September 30, 2024, totaled $3,841,000, a decrease of 2.0% from $3,407,000 in the same period last year[15]. Loans and Deposits - Total loans increased by $15.9 million to $1.06 billion compared to the previous quarter and rose by $45.4 million year-over-year[4]. - Total deposits increased by $17.8 million to $1.24 billion compared to the previous quarter, remaining stable year-over-year[4]. - Loans receivable (GAAP) increased to $1,060,977 thousand from $1,045,065 thousand in June 2024 and $1,015,625 thousand in September 2023[10]. - Total deposits reached $1,237,499 million, up from $1,219,679 million in June 2024 and slightly down from $1,239,766 million in September 2023[18]. - Average loans for the three months ended September 30, 2024, were $1,048,536,000, compared to $1,027,777,000 for the previous quarter, indicating a growth of 2.5%[16]. Asset Quality and Credit Losses - The allowance for credit losses was $15.5 million, representing 1.46% of total loans, compared to 1.51% a year earlier[5]. - Non-performing loans (GAAP) were $450 thousand, slightly down from $461 thousand in the previous quarter and significantly up from $198 thousand in September 2023[11]. - The allowance for credit losses to loans receivable (GAAP) was 1.46%, a slight decrease from 1.47% in June 2024 and down from 1.51% in September 2023[10]. - The allowance for credit losses increased to $15,466 million from $15,364 million in June 2024 and $15,346 million in September 2023[20]. - The allowance for credit losses to non-performing loans ratio was 3436.89% as of September 30, 2024, compared to 3332.75% in June 2024 and 7750.51% in September 2023[17]. Capital and Equity - Riverview's total risk-based capital ratio was 16.14% and Tier 1 leverage ratio was 10.72% as of September 30, 2024[6]. - Shareholders' equity (GAAP) increased to $160,774 thousand as of September 30, 2024, up from $155,908 thousand in June 2024, and $152,039 thousand in September 2023[9]. - Tangible shareholders' equity (non-GAAP) rose to $133,477 thousand, compared to $128,586 thousand in June 2024 and $124,638 thousand in September 2023[9]. - Total liabilities stood at $1,387,623,000, up from $1,382,352,000 in the prior quarter, indicating a marginal increase of 0.2%[14]. - The Tier 1 capital ratio was 14.88% as of September 30, 2024, compared to 14.93% in June 2024 and 15.66% in September 2023[17]. Operational Efficiency - The efficiency ratio improved to 83.7% from 90.0% in the previous quarter but was higher than 76.1% a year ago[3]. - Return on average assets increased to 0.40% compared to 0.25% in the previous quarter and 0.62% a year ago[24]. - Return on average equity rose to 3.90% from 2.49% in the previous quarter and 6.33% a year ago[24]. - Total non-interest expense for the three months ended September 30, 2024, was $10,701,000, an increase of 6.1% compared to $10,089,000 for the same period in 2023[15]. - Total yield on interest-earning assets improved to 4.11% from 4.02% in the previous quarter and 3.75% a year ago[24]. Market and Future Outlook - Riverview has expressed concerns regarding potential adverse impacts from economic conditions, including inflation and geopolitical instability, which could affect future performance[13]. - The company continues to explore market expansion opportunities, although specific new strategies were not detailed in the report[14]. - Future guidance was not explicitly provided, but the company remains optimistic about maintaining growth in loans and deposits[14]. - The company initiated a stock repurchase program allowing for the repurchase of up to $2.0 million of its common stock[6]. - Market price per share closed at $4.71, up from $3.99 in the previous quarter but down from $5.56 a year ago[24].

Core Viewpoint - Riverview Bancorp reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.12 per share a year ago, indicating a 75% earnings surprise [1] Group 1: Earnings Performance - The company posted revenues of $12.78 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.78%, but down from $13.26 million year-over-year [1] - Riverview Bancorp has surpassed consensus EPS estimates two times over the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $12.5 million, and for the current fiscal year, it is $0.16 on revenues of $49.4 million [4] Group 2: Stock Performance and Outlook - Riverview Bancorp shares have declined approximately 27.7% since the beginning of the year, contrasting with the S&P 500's gain of 21.5% [2] - The estimate revisions trend for Riverview Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock movements [2][3] Group 3: Industry Context - The Financial - Savings and Loan industry, to which Riverview Bancorp belongs, is currently in the top 23% of over 250 Zacks industries, suggesting a favorable industry outlook [5] - Another company in the same industry, Provident Financial, is expected to report quarterly earnings of $0.25 per share, with a 7.7% upward revision in the consensus EPS estimate over the last 30 days [5]

Financial Performance - Riverview reported earnings of $966,000, or $0.05 per diluted share, for Q1 FY2025, down from $2.8 million, or $0.13 per diluted share, in the same quarter last year[2]. - Net income for the quarter ended June 30, 2024, was $966,000, compared to a net loss of $2,968,000 for the previous quarter and a net income of $2,843,000 for the same quarter last year[18]. - Basic earnings per share (GAAP) for the quarter was $0.05, compared to a loss of $0.14 in the previous quarter and earnings of $0.13 in the same quarter last year[18]. - Basic earnings per share rose to $0.05 from a loss of $(0.14) in March 2024 and $0.13 in June 2023[28]. Income and Revenue - Net interest income was $8.8 million for the quarter, compared to $8.6 million in the previous quarter and $10.4 million a year ago, with a net interest margin of 2.47%[3][4]. - Non-interest income rose to $3.4 million, significantly up from $494,000 in the previous quarter, driven by higher fees and service charges[4]. - Total interest and dividend income rose to $14,399, up 0.8% from $14,291 in the previous quarter[23]. - Non-interest income increased significantly to $3,367, compared to only $494 in the previous quarter[23]. Loans and Deposits - Total loans increased by $21.1 million to $1.05 billion, with new loan originations rising to $23.2 million from $12.7 million in the previous quarter[6]. - Total deposits decreased to $1.22 billion, down from $1.23 billion in the previous quarter and $1.24 billion a year ago[6]. - Total loans increased to $1,045,065 thousand from $1,024,013 thousand in the previous quarter, an increase of 2.1%[26]. - Total commercial and construction loans increased to $942,166 thousand from $925,907 thousand in the previous quarter, an increase of 1.5%[26]. Asset Quality - Asset quality remained strong, with non-performing assets at $461,000, or 0.03% of total assets, and no provision for credit losses recorded[3][7]. - Non-performing loans to total loans (GAAP) ratio was 0.04% as of June 30, 2024, compared to 0.02% in the previous quarter and 0.10% a year ago[14]. - Non-performing loans increased to $461 thousand from $178 thousand in the previous quarter, representing a rise of 158.4%[24]. - Non-performing assets to total assets ratio increased to 0.03% from 0.01% in the previous quarter[24]. Capital and Ratios - Riverview maintained a total risk-based capital ratio of 16.18% and a Tier 1 leverage ratio of 10.67%[9]. - The allowance for credit losses was $15.4 million, representing 1.47% of total loans, unchanged from the previous quarter[8]. - Allowance for credit losses to loans receivable (GAAP) was 1.47% as of June 30, 2024, compared to 1.50% in the previous quarter and 1.53% a year ago[18]. - Tier 1 capital to risk-weighted assets ratio decreased to 14.93% from 15.06% in the previous quarter[24]. Efficiency and Performance Metrics - The efficiency ratio for the first fiscal quarter was 90.0%, compared to 144.9% in the previous quarter[4]. - Return on average assets increased to 0.25% from (0.76)% in March 2024 and 0.72% in June 2023[28]. - Efficiency ratio improved to 90.00% from 144.91% in March 2024 and 73.13% in June 2023[28]. - Total yield on interest-earning assets increased to 4.02% from 3.88% in March 2024 and 3.76% in June 2023[28]. Shareholder Information - The company has 21,111,043 shares outstanding as of June 30, 2024, unchanged from the previous quarter[17]. - Average number of diluted shares outstanding remained stable at 21,111,043 compared to 21,141,184 in June 2023[28]. - Cash dividends declared per share decreased to $0.0200 from $0.0600 in both March 2024 and June 2023[28]. - Market price per share closed at $3.99, down from $4.72 in March 2024 and $5.04 in June 2023[28]. Strategic Focus - The company aims to continue expanding its community banking services through its 17 branches and 3 lending centers[20]. - Riverview Bancorp is focused on maintaining high-quality service and financial products to its commercial and retail clients[20].

This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this holding company for Riverview Community Bank would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise of 33.33%. Riverview Bancorp, which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $12.19 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.10%. This compares to year-ago revenues of $13.64 ...

"We recognize the importance and impact of the dividend reduction to all of our shareholders, and it was a difficult decision. We believe this is the prudent decision as it allows us to continue to execute on both our short-term and long-term objectives," said Gerald L. Nies, Chairman of the Board. Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon on the I-5 corridor. With assets of $1.52 billion at March 31, 2024, it is the parent com ...

Additionally, Ms. Sherman has led through 10 successful mergers and acquisitions throughout her career. Known for her paramount presentation style, she is a Keynote and Transformational Speaker. Since 2003, Ms. Sherman has been a top-rated faculty member at Pacific Coast Banking School (PCBS) at the University of Washington, Foster School of Business and was named 2023 Instructor of the Year. "With over 25 years of proven experience growing community banking organizations, including the past 20 years in the ...