[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1: Financial Statements (Unaudited)](index=4&type=section&id=Item%201%3A%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for Q2 2025, including balance sheets, income, equity, cash flows, and related notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20March%2031%2C%202025) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | :---------------------------- | | **Assets:** | | | | Cash and cash equivalents | $34,172 | $29,414 | | Investment securities available for sale | $118,777 | $119,436 | | Investment securities held to maturity | $197,478 | $203,079 | | Loans receivable (net) | $1,052,654 | $1,047,086 | | Total Assets | $1,516,643 | $1,513,323 | | **Liabilities:** | | | | Deposits | $1,209,893 | $1,232,328 | | FHLB advances | $102,500 | $76,400 | | Total Liabilities | $1,354,642 | $1,353,309 | | **Shareholders' Equity:** | | | | Total Shareholders' Equity | $162,001 | $160,014 | - Total assets increased by **$3.32 million** from March 31, 2025, to June 30, 2025, reaching **$1.517 billion**[11](index=11&type=chunk) - Deposits decreased by **$22.435 million**, while FHLB advances increased by **$26.1 million**, indicating a shift in funding sources[11](index=11&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total interest and dividend income | $15,375 | $14,399 | | Total interest expense | $5,534 | $5,578 | | Net interest income | $9,841 | $8,821 | | Provision for credit losses | $0 | $0 | | Total non-interest income, net | $3,426 | $3,367 | | Total non-interest expense | $11,720 | $10,969 | | Income before income taxes | $1,547 | $1,219 | | Provision for income taxes | $322 | $253 | | Net income | $1,225 | $966 | | Basic EPS | $0.06 | $0.05 | | Diluted EPS | $0.06 | $0.05 | - Net income increased by **$259,000 (26.8%)** to **$1.225 million** for the three months ended June 30, 2025, compared to the same period in 2024[12](index=12&type=chunk)[185](index=185&type=chunk) - Net interest income grew by **$1.02 million (11.6%)** to **$9.841 million**, driven by increased interest and fees on loans receivable[12](index=12&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :------------------------------------------------------------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Net income | $1,225 | $966 | | Net unrealized holding gains (losses) from available for sale investment securities, net of tax | $1,073 | $(250) | | Total comprehensive income, net | $2,298 | $716 | - Total comprehensive income significantly increased to **$2.298 million** in Q2 2025 from **$716,000** in Q2 2024, primarily due to net unrealized holding gains on available-for-sale investment securities[13](index=13&type=chunk) [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Balance April 1, 2025 (in thousands) | Net Income (in thousands) | Cash Dividends (in thousands) | Stock-based Compensation (in thousands) | Other Comprehensive Income (in thousands) | Balance June 30, 2025 (in thousands) | | :----------------------------------- | :----------------------------------- | :------------------------ | :---------------------------- | :-------------------------------------- | :---------------------------------------- | :----------------------------------- | | Total Shareholders' Equity | $160,014 | $1,225 | $(420) | $109 | $1,073 | $162,001 | - Shareholders' equity increased by **$1.987 million** to **$162.001 million** at June 30, 2025, driven by net income and other comprehensive income, partially offset by cash dividends[15](index=15&type=chunk)[154](index=154&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Cash Flow Activity | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by (used in) operating activities | $(697) | $5,436 | | Net cash provided by (used in) investing activities | $2,285 | $(13,160) | | Net cash provided by financing activities | $3,170 | $11,886 | | Net increase in cash and cash equivalents | $4,758 | $4,162 | | Cash and cash equivalents, end of period | $34,172 | $27,804 | - Cash and cash equivalents increased by **$4.758 million** during the quarter, reaching **$34.172 million** at June 30, 2025[16](index=16&type=chunk) - Operating activities used **$697,000** in cash, a significant shift from providing **$5.436 million** in the prior year, while investing activities provided **$2.285 million**, reversing a prior year outflow[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [1. Basis of Presentation](index=11&type=section&id=1.%20BASIS%20OF%20PRESENTATION) - The unaudited consolidated financial statements are prepared in accordance with Form **10-Q** instructions and **GAAP**, including all necessary normal recurring adjustments[19](index=19&type=chunk) - Management's estimates and assumptions affect reported amounts, and actual results may differ[21](index=21&type=chunk) [2. Principles of Consolidation](index=11&type=section&id=2.%20PRINCIPLES%20OF%20CONSOLIDATION) - The consolidated financial statements include Riverview Bancorp, Inc., its wholly-owned subsidiary Riverview Bank, and the Bank's wholly-owned subsidiaries Riverview Services, Inc. and Riverview Trust Company, with all inter-company transactions eliminated[23](index=23&type=chunk) [3. Stock Plan and Stock-Based Compensation](index=11&type=section&id=3.%20STOCK%20PLAN%20AND%20STOCK-BASED%20COMPENSATION) - The **2017 Equity Incentive Plan** allows for grants of incentive stock options, non-qualified stock options, restricted stock, and restricted stock units, with **1,308,215 shares** available for grant at June 30, 2025[24](index=24&type=chunk) - Stock-based compensation expense for restricted stock increased to **$109,000** for the three months ended June 30, 2025, from **$26,000** in the prior year, primarily due to new grants in Q4 2024[28](index=28&type=chunk) - Unrecognized stock-based compensation related to restricted stock was **$998,000** at June 30, 2025, with a weighted average vesting period of **2.25 years**[28](index=28&type=chunk) [4. Earnings Per Share](index=13&type=section&id=4.%20EARNINGS%20PER%20SHARE) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Basic EPS | $0.06 | $0.05 | | Diluted EPS | $0.06 | $0.05 | | Weighted average common shares outstanding (Basic & Diluted) | 20,976,200 | 21,111,043 | - The Company's Board adopted a stock repurchase program on April 29, 2025, authorizing the purchase of up to **$2.0 million** of common stock[31](index=31&type=chunk)[213](index=213&type=chunk) [5. Investment Securities](index=14&type=section&id=5.%20INVESTMENT%20SECURITIES) | Security Type | Amortized Cost (June 30, 2025, in thousands) | Estimated Fair Value (June 30, 2025, in thousands) | | :----------------------------------- | :------------------------------------------- | :--------------------------------------------- | | **Available for sale:** | | | | Municipal securities | $36,966 | $31,091 | | Agency securities | $32,948 | $30,577 | | Real estate mortgage investment conduits | $27,977 | $23,134 | | Residential mortgage-backed securities | $10,153 | $9,678 | | Other mortgage-backed securities | $26,825 | $24,297 | | **Held to maturity:** | | | | Municipal securities | $10,290 | $7,583 | | Agency securities | $42,303 | $39,949 | | Real estate mortgage investment conduits | $27,625 | $23,754 | | Residential mortgage-backed securities | $98,927 | $84,529 | | Other mortgage-backed securities | $18,333 | $15,961 | - Total investment securities decreased from **$322.5 million** at March 31, 2025, to **$316.3 million** at June 30, 2025, due to normal pay downs, calls, and maturities[144](index=144&type=chunk) - The Company did not record an Allowance for Credit Losses (ACL) on available-for-sale or held-to-maturity debt securities, as unrealized losses were attributed to market conditions (interest rates) rather than credit deterioration[40](index=40&type=chunk)[41](index=41&type=chunk)[44](index=44&type=chunk) [6. Loans and ACL](index=18&type=section&id=6.%20LOANS%20AND%20ACL) | Loan Category | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | :---------------------------- | | Commercial business | $231,826 | $232,935 | | Commercial real estate | $599,617 | $592,185 | | Land | $3,659 | $4,610 | | Multi-family | $90,606 | $91,451 | | Real estate construction | $20,133 | $29,182 | | Real estate one-to-four family | $98,147 | $97,683 | | Other installment | $24,092 | $14,414 | | Total loans | $1,068,080 | $1,062,460 | | Less: ACL for loans | $15,426 | $15,374 | | Loans receivable, net | $1,052,654 | $1,047,086 | - Net loans increased by **$5.6 million** to **$1.05 billion** at June 30, 2025, primarily due to a **$7.4 million** increase in commercial real estate loans, partially offset by a **$9.0 million** decrease in real estate construction loans[145](index=145&type=chunk)[147](index=147&type=chunk) - The Allowance for Credit Losses (ACL) for loans was **$15.426 million** at June 30, 2025, slightly up from **$15.374 million** at March 31, 2025, with **no provision for credit losses** recorded for the quarter[46](index=46&type=chunk)[68](index=68&type=chunk)[197](index=197&type=chunk) - Non-accrual loans totaled **$143,000** at June 30, 2025, down from **$155,000** at March 31, 2025, with the ACL providing over **10,800%** coverage of nonperforming loans[72](index=72&type=chunk)[173](index=173&type=chunk) [7. Goodwill](index=31&type=section&id=7.%20GOODWILL) - Goodwill remained stable at **$27.1 million** at both June 30, 2025, and March 31, 2025[11](index=11&type=chunk)[150](index=150&type=chunk) - The Company performed a qualitative assessment as of June 30, 2025, and concluded that the fair value of the Bank (the reporting unit) exceeded its carrying value, thus **no goodwill impairment was recognized**[76](index=76&type=chunk)[182](index=182&type=chunk) [8. Federal Home Loan Bank Advances](index=31&type=section&id=8.%20FEDERAL%20HOME%20LOAN%20BANK%20ADVANCES) | Metric | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | :---------------------------- | | FHLB advances | $102,500 | $76,400 | | Weighted average interest rate | 4.59% | 5.17% | - FHLB advances increased by **$26.1 million** to **$102.5 million** at June 30, 2025, used to fund new loan originations and offset deposit decreases[153](index=153&type=chunk) - The Bank had an additional borrowing capacity of **$155.9 million** from the FHLB at June 30, 2025, collateralized by **$471.6 million** in real estate loans[78](index=78&type=chunk) [9. Junior Subordinated Debentures](index=31&type=section&id=9.%20JUNIOR%20SUBORDINATED%20DEBENTURES) - Junior subordinated debentures totaled **$27.1 million** at both June 30, 2025, and March 31, 2025[80](index=80&type=chunk) | Issuance Trust | Maturity Date | Current Rate | | :----------------------------------- | :------------ | :----------- | | Riverview Bancorp Statutory Trust I | 3/2036 | 5.92% | | Riverview Bancorp Statutory Trust II | 9/2037 | 5.91% | | Merchants Bancorp Statutory Trust I | 6/2033 | 7.66% | [10. Fair Value Measurements](index=33&type=section&id=10.%20FAIR%20VALUE%20MEASUREMENTS) - Fair value measurements are categorized into Level **1** (quoted prices in active markets), Level **2** (other observable inputs), and Level **3** (significant unobservable inputs)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) | Asset Type | Total Estimated Fair Value (June 30, 2025, in thousands) | Level 2 (in thousands) | | :----------------------------------- | :------------------------------------------- | :--------------------- | | Investment securities available for sale | $118,777 | $118,777 | | Municipal securities | $31,091 | $31,091 | | Agency securities | $30,577 | $30,577 | | Real estate mortgage investment conduits | $23,134 | $23,134 | | Residential mortgage-backed securities | $9,678 | $9,678 | | Other mortgage-backed securities | $24,297 | $24,297 | - All investment securities available for sale are measured using Level **2** inputs, relying on third-party pricing services that incorporate models and market data[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [11. New Accounting Pronouncements](index=36&type=section&id=11.%20NEW%20ACCOUNTING%20PRONOUNCEMENTS) - ASU **2024-03** and ASU **2025-01** require enhanced disclosure of specified costs and expenses in financial statement notes, effective for annual periods beginning after December 15, 2026, with early adoption permitted[96](index=96&type=chunk)[97](index=97&type=chunk) - The Company expects these ASUs to impact only disclosure requirements and not materially affect business operations or consolidated financial statements[96](index=96&type=chunk) [12. Revenue from Contracts with Customers](index=38&type=section&id=12.%20REVENUE%20FROM%20CONTRACTS%20WITH%20CUSTOMERS) - The largest portion of the Company's revenue is interest income, which is outside the scope of ASC **606**[100](index=100&type=chunk) | Non-Interest Income Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Asset management fees | $1,552 | $1,558 | | Debit card and ATM fees | $762 | $821 | | Deposit related fees | $528 | $461 | | Loan related fees | $110 | $88 | | Income from BOLI | $222 | $211 | | FHLMC loan servicing fees | $17 | $19 | | Other, net | $235 | $209 | | Total non-interest income, net | $3,426 | $3,367 | - Substantially all revenues within the scope of ASC **606** for the three months ended June 30, 2025 and 2024, are for performance obligations satisfied at a point in time[101](index=101&type=chunk) [13. Commitments and Contingencies](index=40&type=section&id=13.%20COMMITMENTS%20AND%20CONTINGENCIES) | Commitment Type | June 30, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | | Commitments to extend credit (Adjustable-rate) | $14,124 | | Standby letters of credit | $1,600 | | Undisbursed loan funds and unused lines of credit | $85,146 | | Total | $100,870 | - The Company had total off-balance sheet commitments of **$100.87 million** at June 30, 2025, including commitments to extend credit and unused lines of credit[113](index=113&type=chunk) - The Company is periodically involved in litigation, but management believes these actions will not have a material effect on its financial position, results of operations, or liquidity[117](index=117&type=chunk) [14. Leases](index=42&type=section&id=14.%20LEASES) | Lease Metric | June 30, 2025 | March 31, 2025 | | :----------------------------------- | :------------ | :------------- | | Finance lease ROU asset | $1,106 | $1,125 | | Finance lease liability | $2,080 | $2,099 | | Operating lease ROU assets | $4,437 | $4,245 | | Operating lease liabilities | $4,652 | $4,465 | | Finance lease remaining lease term | 14.43 years | 14.68 years | | Operating lease weighted-average remaining lease term | 4.49 years | 4.65 years | | Lease Cost Type | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Finance lease amortization of ROU asset | $19 | $19 | | Finance lease interest on lease liability | $37 | $39 | | Operating lease costs | $288 | $283 | | Variable lease costs | $0 | $52 | | Total lease cost | $344 | $393 | - Operating cash flows paid for operating lease amounts decreased to **$288,000** for the three months ended June 30, 2025, from **$347,000** in the prior year[121](index=121&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion of financial condition and operating results, covering performance drivers, strategic priorities, capital, liquidity, and asset quality [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There have been no material changes in the Company's critical accounting policies and estimates compared to the disclosures in the **2025 Form 10-K**[124](index=124&type=chunk) [Executive Overview](index=44&type=section&id=Executive%20Overview) - Riverview Bancorp, Inc. (the Company) is a community-oriented financial services business primarily attracting deposits and originating commercial business, commercial real estate, multi-family, land, real estate construction, residential real estate, and other consumer loans in Washington and Oregon[125](index=125&type=chunk)[126](index=126&type=chunk) - The Company's strategic plan focuses on five priorities: being the employer of choice, profitable growth, digital experience, data empowerment, and client experience[128](index=128&type=chunk)[129](index=129&type=chunk)[135](index=135&type=chunk) - The Company targets commercial banking clients for loan originations and deposit growth, emphasizing commercial business and commercial real estate loans due to their adjustable rates, higher yields, and shorter terms[130](index=130&type=chunk) [Operating Strategy](index=46&type=section&id=Operating%20Strategy) - The primary business strategy is to provide comprehensive banking and financial services within its market, aiming for shareholder returns by increasing higher-yielding assets (commercial and construction loans), growing core deposits, managing problem assets, and exploring expansion opportunities[133](index=133&type=chunk) - Commercial and construction loans represented **88.6%** of total loans at June 30, 2025, reflecting a diversification from historical residential real estate focus[133](index=133&type=chunk) - The Company prioritizes attracting core deposits over higher-cost funding sources, enhancing digital banking capabilities, and recruiting experienced commercial lending personnel to strengthen client relationships and market position[138](index=138&type=chunk)[139](index=139&type=chunk) [Commercial and Construction Loan Composition](index=49&type=section&id=Commercial%20and%20Construction%20Loan%20Composition) | Loan Purpose | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | :---------------------------- | | Commercial business | $231,826 | $232,935 | | Commercial construction | $9,994 | $18,368 | | Office buildings | $108,610 | $110,949 | | Warehouse/industrial | $113,361 | $114,926 | | Retail/shopping centers/strip malls | $87,742 | $88,815 | | Assisted living facilities | $353 | $358 | | Single purpose facilities | $289,551 | $277,137 | | Land | $3,659 | $4,610 | | Multi-family | $90,606 | $91,451 | | One-to-four family construction | $10,139 | $10,814 | | Total Commercial and Construction | $945,841 | $950,363 | - Commercial and construction loans totaled **$945.8 million** at June 30, 2025, a slight decrease from **$950.4 million** at March 31, 2025[141](index=141&type=chunk)[142](index=142&type=chunk) - Single purpose facilities represent the largest segment within commercial real estate, increasing from **$277.1 million** to **$289.6 million**[141](index=141&type=chunk)[142](index=142&type=chunk) [Comparison of Financial Condition](index=49&type=section&id=Comparison%20of%20Financial%20Condition%20at%20June%2030%2C%202025%20and%20March%2031%2C%202025) - Cash and cash equivalents increased to **$34.2 million** at June 30, 2025, from **$29.4 million** at March 31, 2025[143](index=143&type=chunk) - Loans receivable, net, increased by **$5.6 million** to **$1.05 billion**, driven by commercial real estate loans, partially offset by a decrease in real estate construction loans[145](index=145&type=chunk)[147](index=147&type=chunk) - Deposits decreased by **$22.4 million** to **$1.21 billion**, primarily due to increased competition, pricing pressure, and reduced market liquidity, with core branch deposits representing **98.4%** of total deposits[151](index=151&type=chunk)[152](index=152&type=chunk) - FHLB advances increased by **$26.1 million** to **$102.5 million**, used to fund loan originations and mitigate deposit declines[153](index=153&type=chunk) - Shareholders' equity increased by **$2.0 million** to **$162.0 million**, mainly due to net income and improved other comprehensive income from reduced unrealized losses on available-for-sale securities[154](index=154&type=chunk) [Capital Resources](index=51&type=section&id=Capital%20Resources) - The Bank is categorized as '**well capitalized**' under FDIC's regulatory framework, meeting all capital adequacy requirements as of June 30, 2025[157](index=157&type=chunk) | Capital Ratio | Actual Ratio (June 30, 2025) | Well Capitalized Ratio | | :----------------------------------- | :--------------------------- | :--------------------- | | Total Capital (To Risk-Weighted Assets) | **16.56%** | **10.0%** | | Tier 1 Capital (To Risk-Weighted Assets) | **15.31%** | **8.0%** | | Common equity tier 1 Capital (To Risk-Weighted Assets) | **15.31%** | **6.5%** | | Tier 1 Capital (Leverage) (To Average Tangible Assets) | **11.16%** | **5.0%** | - The Bank's Common Equity Tier 1 (CET1) capital exceeded the required capital conservation buffer of **2.5%** of risk-weighted assets[157](index=157&type=chunk) [Liquidity](index=53&type=section&id=Liquidity) - Core relationship deposits are the primary source of liquidity, with a focus on local consumer and business clients[161](index=161&type=chunk) - At June 30, 2025, cash and cash equivalents and available-for-sale investment securities totaled **$152.9 million**, representing **10.0%** of total assets[165](index=165&type=chunk) - The Bank had available liquidity of **$787.4 million**, or **51.92%** of total assets, at June 30, 2025, including borrowing capacity from the FRB (**$195.1 million**) and FHLB (**$155.9 million**)[165](index=165&type=chunk)[166](index=166&type=chunk) - The Company had total commitments of **$100.9 million** at June 30, 2025, including commitments to extend credit and unused lines of credit[167](index=167&type=chunk) [Asset Quality](index=57&type=section&id=Asset%20Quality) - Nonperforming assets were **$143,000 (0.01% of total assets)** at June 30, 2025, down from **$155,000** at March 31, 2025[172](index=172&type=chunk) | Nonperforming Loan Type | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------------- | :----------------------------- | :---------------------------- | | Commercial business | $32 | $37 | | Commercial real estate | $82 | $88 | | Consumer | $29 | $30 | | Total nonperforming loans | $143 | $155 | - The Allowance for Credit Losses (ACL) for loans was **$15.4 million**, providing coverage of over **10,800%** of nonperforming loans at June 30, 2025, reflecting strong asset quality[173](index=173&type=chunk) - Loans delinquent 30-89 days decreased to **$3.7 million (0.34% of total loans)** at June 30, 2025, from **$4.1 million (0.38%)** at March 31, 2025[177](index=177&type=chunk) [Goodwill Valuation](index=60&type=section&id=Goodwill%20Valuation) - Goodwill is tested for impairment at least annually at the reporting unit level (Bank and Trust Company), with all goodwill allocated to the Bank[179](index=179&type=chunk) - The Company performed its annual goodwill impairment test as of October 31, 2024, and a qualitative assessment as of June 30, 2025, concluding that **no impairment exists**[181](index=181&type=chunk)[182](index=182&type=chunk) - Future impairment charges could occur if adverse events or changes in circumstances arise, such as a sustained decline in stock price, revenue declines, or significant adverse changes in the operating environment[182](index=182&type=chunk) [Comparison of Operating Results](index=61&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) [Net Income](index=61&type=section&id=Net%20Income) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net income | $1,225,000 | $966,000 | | Diluted EPS | $0.06 | $0.05 | - Net income increased by **$259,000 (26.8%)** to **$1.2 million**, or **$0.06** per diluted share, primarily due to higher interest and dividend income, partially offset by increased non-interest expense and income taxes[185](index=185&type=chunk) [Net Interest Income](index=61&type=section&id=Net%20Interest%20Income) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net interest income | $9,841 | $8,821 | | Net interest margin | **2.78%** | **2.47%** | - Net interest income increased by **$1.0 million**, and net interest margin rose to **2.78%** from **2.47%**, driven by higher interest income on loans while interest expense remained steady[187](index=187&type=chunk) [Interest and Dividend Income](index=61&type=section&id=Interest%20and%20Dividend%20Income) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total interest and dividend income | $15,375 | $14,399 | | Interest and fees on loans receivable | $13,352 | $12,052 | | Interest on investment securities | $1,732 | $2,037 | | Average yield on loans | **5.02%** | **4.70%** | | Average balance of net loans | $1,066,712 | $1,027,777 | - Total interest and dividend income increased by **$976,000** to **$15.4 million**, primarily due to a **$1.3 million** increase in interest and fees on loans receivable[188](index=188&type=chunk) - The average yield on loans increased by **32 basis points** to **5.02%**, and the average balance of net loans grew by **$38.9 million** to **$1.07 billion**[189](index=189&type=chunk) [Interest Expense](index=61&type=section&id=Interest%20Expense) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total interest expense | $5,534 | $5,578 | | Interest on deposits | $3,774 | $3,447 | | Interest on borrowings | $1,760 | $2,131 | | Average rate paid on total interest-bearing deposits | **1.72%** | **1.61%** | | Average rate paid on FHLB advances | **3.20%** | **4.53%** | - Total interest expense slightly decreased by **$44,000** to **$5.5 million**[190](index=190&type=chunk) - Interest expense on deposits increased by **$327,000** due to higher average rates on money market accounts and increased average balances of certificates of deposit and money market accounts[190](index=190&type=chunk) - Interest expense on borrowings decreased by **$371,000**, primarily due to a **133 basis point** decline in the average rate paid on FHLB advances[191](index=191&type=chunk) [Provision for Credit Losses](index=64&type=section&id=Provision%20for%20Credit%20Losses) - The Company recorded **no provision for credit losses** for the three months ended June 30, 2025, or 2024, reflecting stable economic forecasts and strong asset quality[197](index=197&type=chunk) - Net recoveries totaled **$52,000** for the three months ended June 30, 2025[197](index=197&type=chunk) - The ratio of ACL for loans to nonperforming loans was approximately **10,800%** at June 30, 2025, indicating conservative reserve levels[199](index=199&type=chunk) [Non-Interest Income](index=64&type=section&id=Non-Interest%20Income) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total non-interest income, net | $3,426 | $3,367 | | Fees and service charges | $1,572 | $1,540 | | Other, net | $80 | $58 | - Non-interest income increased by **$59,000** to **$3.4 million**, driven by a **$32,000** increase in fees and service charges (primarily higher non-sufficient fund charges) and a **$22,000** increase in other non-interest income (due to BOLI death benefits)[200](index=200&type=chunk)[201](index=201&type=chunk) [Non-Interest Expense](index=66&type=section&id=Non-Interest%20Expense) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Total non-interest expense | $11,720 | $10,969 | | Salaries and employee benefits | $7,247 | $6,388 | | Other | $751 | $656 | - Non-interest expense increased by **$751,000** to **$11.7 million**, primarily due to an **$859,000** increase in salaries and employee benefits (compensation, bonus, payroll taxes)[202](index=202&type=chunk) - Other non-interest expense increased by **$95,000** due to fewer fraud recoveries and the absence of a prior-year gain on sale of fixed assets[202](index=202&type=chunk) [Income Taxes](index=66&type=section&id=Income%20Taxes) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Provision for income taxes | $322 | $253 | | Effective tax rate | **20.8%** | **20.8%** | - The provision for income taxes increased to **$322,000** due to higher pre-tax income, while the effective tax rate remained stable at **20.8%**[203](index=203&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures since the Company's 2025 Form 10-K - No material changes have occurred in the market risk disclosures since the **2025 Form 10-K**[205](index=205&type=chunk) [Item 4: Controls and Procedures](index=67&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures as of June 30, 2025, with no material changes in internal control - The Company's disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting[206](index=206&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[206](index=206&type=chunk) - The Company acknowledges inherent limitations in control procedures, meaning they provide reasonable, not absolute, assurance against errors and fraud[207](index=207&type=chunk) [Part II. Other Information](index=68&type=section&id=Part%20II.Other%20Information) [Item 1: Legal Proceedings](index=68&type=section&id=Item%201%3A%20Legal%20Proceedings) Company involved in ordinary course litigation, with management expecting no material effect on financial position, results, or liquidity - The Company is involved in ordinary course litigation, but management does not expect a material effect on financial position, results, or liquidity[210](index=210&type=chunk) [Item 1A: Risk Factors](index=68&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to risk factors since the Company's 2025 Form 10-K - No material changes to the risk factors have occurred since the **2025 Form 10-K**[211](index=211&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales; $2.0 million stock repurchase program authorized, but no shares purchased during the quarter - No shares were purchased under the **$2.0 million** stock repurchase program during the quarter ended June 30, 2025[213](index=213&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Stock Repurchase Program | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Stock Repurchase Program | | :----------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------ | | April 1, 2025 - June 30, 2025 | — | $— | — | $2,000,000 | | Total | — | $— | — | $2,000,000 | [Item 3: Defaults Upon Senior Securities](index=68&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) This item is not applicable, indicating no defaults upon senior securities during the reporting period - This item is not applicable for the reporting period[214](index=214&type=chunk) [Item 4: Mine Safety Disclosures](index=68&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable, indicating no mine safety disclosures are required for the Company - This item is not applicable for the reporting period[214](index=214&type=chunk) [Item 5: Other Information](index=68&type=section&id=Item%205%3A%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading agreement during the quarter - No director or officer adopted or terminated a Rule **10b5-1** trading arrangement or non-Rule **10b5-1** trading agreement during the quarter[215](index=215&type=chunk) [Item 6: Exhibits](index=70&type=section&id=Item%206%3A%20Exhibits) Lists all exhibits filed with Form 10-Q, including corporate documents, employment agreements, equity plans, certifications, and XBRL statements - The exhibits include foundational corporate documents (Articles of Incorporation, Bylaws), employment and change in control agreements for key personnel, and details of the **2017 Equity Incentive Plan**[217](index=217&type=chunk) - Certifications from the CEO and CFO pursuant to Sections **302** and **906** of the Sarbanes-Oxley Act are included[217](index=217&type=chunk) - The financial statements for the quarter ended June 30, 2025, are provided in Inline Extensible Business Reporting Language (XBRL) format[217](index=217&type=chunk) [SIGNATURES](index=72&type=section&id=SIGNATURES) Contains signatures of the President/CEO and EVP/CFO, certifying the filing of the report - The report is signed by Nicole Sherman, Executive Vice President and Chief Financial Officer, and David Lam, President and Chief Executive Officer, on August 8, 2025[222](index=222&type=chunk)

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Fiscal Q1 2026 Key Financial Highlights](index=1&type=section&id=Fiscal%20Q1%202026%20Key%20Financial%20Highlights) Riverview Bancorp reported **$1.2 million** net income and **$0.06** diluted EPS, with improved net interest income and strong asset quality Fiscal Q1 2026 Key Financial Data | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | | :----------------------- | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net Income ($) | $1.2 Million | $1.1 Million | $966,000 | | Diluted EPS ($) | $0.06 | $0.05 | $0.05 | | Net Interest Income ($) | $9.8 million | $9.2 million | $8.8 million | | Net Interest Margin (%) | 2.78% | 2.65% | 2.47% | | Non-Performing Assets to Total Assets Ratio (%) | 0.01% | 0.01% | 0.03% | - The company paid a cash dividend of **$0.02 per share** on July 22, 2025[2](index=2&type=chunk) - Completed a **$2 million** share repurchase program in September 2024 and approved a new **$2 million** program on April 29, 2025[2](index=2&type=chunk) [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) CEO Nicole Sherman highlighted Russell 2000® inclusion and a three-year strategic plan for growth and digital expansion - Riverview's inclusion in the Russell 2000® Index marks a significant achievement, enhancing its visibility within the institutional investment community[3](index=3&type=chunk)[4](index=4&type=chunk) - The company has initiated a three-year strategic plan focusing on sustainable growth, expanding digital capabilities, and leveraging data-driven strategic business decisions[4](index=4&type=chunk) - Loan reserves remain strong, with anticipated continued loan demand in the service market, and the company will further strengthen its commercial and corporate banking teams[4](index=4&type=chunk) [About Riverview](index=7&type=section&id=About%20Riverview) Riverview Bancorp, Inc., based in Vancouver, WA, manages **$1.52 billion** in assets, serving clients via **17 branches** - Riverview Bancorp, Inc. is headquartered in Vancouver, Washington, and is the parent company of Riverview Bank and Riverview Trust Company[33](index=33&type=chunk) - As of June 30, 2025, the company's total assets were **$1.52 billion**[33](index=33&type=chunk) - The company provides community banking services through **17 branches** (13 in the Portland-Vancouver metropolitan area) and **3 loan centers**[33](index=33&type=chunk) [Financial Performance Review](index=2&type=section&id=Financial%20Performance%20Review) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income rose to **$9.8 million**, with NIM expanding to **2.78%**, driven by higher asset yields Net Interest Income and Net Interest Margin Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Net Interest Income ($) | $9.8 million | $9.2 million | $8.8 million | +$0.6M | +$1.0M | | Net Interest Margin (NIM) (%) | 2.78% | 2.65% | 2.47% | +13 bps | +31 bps | | Loan Yield (%) | 5.02% | 4.91% | 4.70% | +11 bps | +32 bps | | Cost of Deposits (%) | 1.72% | 1.76% | 1.61% | -4 bps | +11 bps | - The growth in net interest income is primarily attributed to higher yields on interest-earning assets and **$248,000** in Visa B income recognized this quarter[5](index=5&type=chunk) - Investment securities decreased by **$6.3 million** to **$316.3 million** this quarter, with no investment purchases made in fiscal Q1[7](index=7&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Non-interest income was **$3.4 million**, stable year-over-year, with Riverview Trust AUM growing to **$900.1 million** Non-Interest Income Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :---------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Total Non-Interest Income ($) | $3.4 million | $3.7 million | $3.4 million | -$0.3M | $0.0M | | Asset Management Fees ($) | $1.6 million | $1.5 million | $1.6 million | +$0.1M | $0.0M | - Prior quarter's non-interest income included a **$261,000** BOLI death benefit and **$244,000** in insurance expense reimbursement[9](index=9&type=chunk) - Riverview Trust Company's assets under management increased to **$900.1 million** as of June 30, 2025, up from **$877.9 million** on March 31, 2025[10](index=10&type=chunk) [Non-Interest Expense and Efficiency](index=3&type=section&id=Non-Interest%20Expense%20and%20Efficiency) Non-interest expense increased to **$11.7 million** due to strategic investments, improving efficiency ratio to **88.3%** Non-Interest Expense and Efficiency Ratio Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Non-Interest Expense ($) | $11.7 million | $11.4 million | $11.0 million | +$0.3M | +$0.7M | | Efficiency Ratio (%) | 88.3% | 88.7% | 90.0% | -0.4% | -1.7% | - The increase in non-interest expense is primarily due to the company's continued investment in strategic growth initiatives, including building the corporate banking team and other key personnel hires, leading to higher salaries and benefits[11](index=11&type=chunk) - Professional fees decreased as the company transitioned from external consultants to permanent internal positions[11](index=11&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) Riverview's effective tax rate for fiscal Q1 2026 was **20.8%**, stable year-over-year Effective Tax Rate Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :--------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Effective Tax Rate (%) | 20.8% | 21.5% | 20.8% | -0.7% | 0.0% | [Financial Position Review](index=3&type=section&id=Financial%20Position%20Review) [Loans and Loan Portfolio](index=3&type=section&id=Loans%20and%20Loan%20Portfolio) Total loans grew to **$1.07 billion**, with reserves at **$72 million** and new originations at **$28.3 million** Loan Portfolio Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Total Loans ($) | $1.07 billion | $1.06 billion | $1.05 billion | +$0.01B | +$0.02B | | Loan Reserves ($) | $72.0 million | $41.1 million | $32.3 million | +$30.9M | +$39.7M | | New Loan Originations ($) | $28.3 million | $49.4 million | $23.2 million | -$21.1M | +$5.1M | | Weighted Average Rate on New Originations (%) | 7.51% | 7.16% | N/A | +0.35% | N/A | - Unfunded construction loans totaled **$13.3 million**, with the majority expected to be funded in future quarters[14](index=14&type=chunk) - The office loan portfolio was **$108.6 million**, with an average loan balance of **$1.6 million**, an average loan-to-value ratio of **52.77%**, and an average debt service coverage ratio of **1.73x**[15](index=15&type=chunk) [Deposits and Funding](index=3&type=section&id=Deposits%20and%20Funding) Total deposits decreased to **$1.21 billion**, with FHLB advances increasing to **$102.5 million** to offset Deposits and FHLB Advances Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :---------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Total Deposits ($) | $1.21 billion | $1.23 billion | $1.22 billion | -$0.02B | -$0.01B | | FHLB Advances ($) | $102.5 million | $76.4 million | $113.5 million | +$26.1M | -$11.0M | - As of June 30, 2025, non-interest-bearing and interest-bearing checking accounts comprised **48.3%** of total deposits[16](index=16&type=chunk) - Certificates of deposit balances increased this quarter, driven by continued customer demand for higher yields[16](index=16&type=chunk) [Shareholders' Equity](index=3&type=section&id=Shareholders'%20Equity) Shareholders' equity rose to **$162 million**, with tangible book value per share at **$6.43** Shareholders' Equity and Book Value Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Shareholders' Equity ($) | $162.0 million | $160.0 million | $155.9 million | +$2.0M | +$6.1M | | Tangible Book Value Per Share (Non-GAAP) ($) | $6.43 | $6.33 | $6.09 | +$0.10 | +$0.34 | - The company paid a quarterly cash dividend of **$0.02 per share** on July 22, 2025[18](index=18&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) [Non-Performing Assets and Loans](index=4&type=section&id=Non-Performing%20Assets%20and%20Loans) Asset quality remained strong, with non-performing loans at **$143,000** or **0.01%** of total loans Non-Performing Assets and Loans Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :------------------------------------------------ | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Non-Performing Loans (Excluding Government Guaranteed) ($) | $143,000 | $155,000 | $160,000 | -$12,000 | -$17,000 | | Non-Performing Loans to Total Loans Ratio (Excluding Government Guaranteed) (%) | 0.01% | 0.01% | 0.02% | 0.00% | -0.01% | | Non-Performing Assets ($) | $143,000 | $155,000 | $461,000 | -$12,000 | -$318,000 | | Non-Performing Assets to Total Assets Ratio (%) | 0.01% | 0.01% | 0.03% | 0.00% | -0.02% | - There were no non-performing government-guaranteed loans as of June 30, 2025, and March 31, 2025[19](index=19&type=chunk) [Loan Recoveries and Provision for Credit Losses](index=4&type=section&id=Loan%20Recoveries%20and%20Provision%20for%20Credit%20Losses) Riverview recorded **$52,000** in net loan recoveries, with no provision for credit losses this quarter Net Loan Recoveries and Provision for Credit Losses | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Net Loan Recoveries (Charge-offs) ($) | $52,000 | $22,000 | $0 | +$30,000 | +$52,000 | | Provision for Credit Losses ($) | $0 | $0 | $0 | $0 | $0 | [Classified and Criticized Assets](index=4&type=section&id=Classified%20and%20Criticized%20Assets) Classified assets increased to **$10.8 million** due to one loan, while criticized assets decreased to **$45.7 million** Classified and Criticized Assets Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :-------------------------- | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Classified Assets ($) | $10.8 million | $2.9 million | $228,000 | +$7.9M | +$10.6M | | Classified Assets to Total Capital Ratio (%) | 5.9% | 1.6% | 0.1% | +4.3% | +5.8% | | Criticized Assets ($) | $45.7 million | $48.5 million | $37.7 million | -$2.8M | +$8.0M | - The increase in classified assets is primarily attributable to one loan relationship for which the company has a plan to return to normal status or pay off[21](index=21&type=chunk) - The year-over-year increase in criticized assets is primarily due to one loan relationship moved to this category during probate, for which the company anticipates no loss[21](index=21&type=chunk) [Allowance for Credit Losses](index=4&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for credit losses remained stable at **$15.4 million**, representing **1.44%** of total loans Allowance for Credit Losses Trends | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | QoQ Change | YoY Change | | :------------------------------------------------ | :---------------------- | :----------------------- | :---------------------- | :--------- | :--------- | | Allowance for Credit Losses ($) | $15.4 million | $15.4 million | $15.4 million | $0.0M | $0.0M | | Allowance for Credit Losses to Total Loans Ratio (%) | 1.44% | 1.45% | 1.47% | -0.01% | -0.03% | | Allowance for Credit Losses to Loans Ratio (Excluding Government Guaranteed) (%) | 1.51% | 1.51% | 1.54% | 0.00% | -0.03% | [Capital and Liquidity](index=4&type=section&id=Capital%20and%20Liquidity) [Capital Ratios](index=4&type=section&id=Capital%20Ratios) Riverview maintained strong capital, exceeding 'well-capitalized' requirements, with a **16.56%** total risk-based capital ratio Capital Ratios | Metric | Fiscal Q1 2026 (Jun 30, 2025) | Fiscal Q4 2025 (Mar 31, 2025) | Fiscal Q1 2025 (Jun 30, 2024) | | :------------------------------------ | :---------------------- | :----------------------- | :---------------------- | | Total Risk-Based Capital Ratio (%) | 16.56% | 16.48% | 16.18% | | Tier 1 Capital Ratio (%) | 15.31% | 15.23% | 14.93% | | Common Equity Tier 1 Capital Ratio (%) | 15.31% | 15.23% | 14.93% | | Tier 1 Leverage Ratio (%) | 11.16% | 11.10% | 10.67% | | Tangible Common Equity to Average Tangible Assets Ratio (Non-GAAP) (%) | 9.05% | 8.93% | 8.51% | - Riverview consistently maintains strong capital levels, exceeding regulatory "well-capitalized" classification requirements[23](index=23&type=chunk) [Liquidity Position](index=4&type=section&id=Liquidity%20Position) Riverview held **$449.2 million** in available liquidity, covering **160.2%** of estimated uninsured deposits Available Liquidity | Source | Amount (June 30, 2025) ($) | | :-------------------------------- | :--------------------- | | Total Available Liquidity ($) | $449.2 million | | FHLB Borrowing Capacity ($) | $155.9 million | | FRB Borrowing Capacity ($) | $293.3 million | - As of June 30, 2025, the uninsured deposit ratio was **23.2%**[25](index=25&type=chunk) - Available liquidity under FHLB and FRB borrowing lines covers **160.2%** of estimated uninsured deposits[25](index=25&type=chunk) [Share Repurchase Programs](index=4&type=section&id=Share%20Repurchase%20Programs) The company completed a **$2 million** share repurchase program and approved a new **$2 million** program - The company completed a **$2 million** share repurchase program on February 2, 2025, repurchasing **358,631 shares** at an average price of **$5.58 per share**[26](index=26&type=chunk) - On April 24, 2025, the Board of Directors approved a new **$2 million** share repurchase program, with no repurchases made under it as of June 30, 2025[27](index=27&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP metrics to GAAP, providing supplementary information for performance assessment [Tangible Shareholders' Equity and Book Value Reconciliation](index=5&type=section&id=Tangible%20Shareholders'%20Equity%20and%20Book%20Value%20Reconciliation) Reconciliation of GAAP to tangible shareholders' equity, total assets, and book value per share Tangible Shareholders' Equity and Book Value Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Shareholders' Equity (GAAP) ($) | $162,001 | $160,014 | $155,908 | | Less: Goodwill ($) | (27,076) | (27,076) | (27,076) | | Less: Core deposit intangible, net ($) | (147) | (171) | (246) | | Tangible Shareholders' Equity (Non-GAAP) ($) | $134,778 | $132,767 | $128,586 | | Total Assets (GAAP) ($) | $1,516,643 | $1,513,323 | $1,538,260 | | Less: Goodwill ($) | (27,076) | (27,076) | (27,076) | | Less: Core deposit intangible, net ($) | (147) | (171) | (246) | | Tangible Assets (Non-GAAP) ($) | $1,489,420 | $1,486,076 | $1,510,938 | | Book Value Per Share (GAAP) ($) | $7.72 | $7.63 | $7.39 | | Tangible Book Value Per Share (Non-GAAP) ($) | $6.43 | $6.33 | $6.09 | [Pre-tax, Pre-provision Income Reconciliation](index=6&type=section&id=Pre-tax%2C%20Pre-provision%20Income%20Reconciliation) Reconciliation of GAAP net income to pre-tax, pre-provision income by adjusting for taxes and credit losses Pre-tax, Pre-provision Income Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Net Income (Loss) (GAAP) ($) | $1,225 | $1,148 | $966 | | Add: Provision for income taxes (credit) ($) | 322 | 314 | 253 | | Add: Provision for credit losses ($) | - | - | - | | Pre-tax, Pre-provision Income (Loss) (Non-GAAP) ($) | $1,547 | $1,462 | $1,219 | [Allowance for Credit Losses Reconciliation (Excluding Government Guaranteed Loans)](index=6&type=section&id=Allowance%20for%20Credit%20Losses%20Reconciliation%20(Excluding%20Government%20Guaranteed%20Loans)) Reconciliation of allowance for credit losses to total loans, excluding government-guaranteed loans Allowance for Credit Losses Reconciliation (Excluding Government Guaranteed Loans) (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------- | :------------ | | Allowance for Credit Losses ($) | $15,426 | $15,374 | $15,364 | | Loans receivable (GAAP) ($) | $1,068,080 | $1,062,460 | $1,045,065 | | Less: Government guaranteed loans ($) | (46,965) | (47,373) | (50,438) | | Loans receivable, excluding government guaranteed loans (Non-GAAP) ($) | $1,021,115 | $1,015,087 | $994,627 | | Allowance for credit losses to loans receivable (GAAP) (%) | 1.44% | 1.45% | 1.47% | | Allowance for credit losses to loans receivable, excluding government guaranteed loans (Non-GAAP) (%) | 1.51% | 1.51% | 1.54% | [Non-Performing Loans Reconciliation (Excluding Government Guaranteed Loans)](index=6&type=section&id=Non-Performing%20Loans%20Reconciliation%20(Excluding%20Government%20Guaranteed%20Loans)) Reconciliation of GAAP non-performing loans to adjusted non-performing loans, excluding government-guaranteed loans Non-Performing Loans Reconciliation (Excluding Government Guaranteed Loans) (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------- | :------------ | | Non-performing loans (GAAP) ($) | $143 | $155 | $461 | | Less: Non-performing government guaranteed loans ($) | - | - | (301) | | Non-performing loans, adjusted, excluding government guaranteed loans (Non-GAAP) ($) | $143 | $155 | $160 | | Non-performing loans to total loans (GAAP) (%) | 0.01% | 0.01% | 0.04% | | Non-performing loans, excluding government guaranteed loans to total loans (Non-GAAP) (%) | 0.01% | 0.01% | 0.02% | | Non-performing loans to total assets (GAAP) (%) | 0.01% | 0.01% | 0.03% | | Non-performing loans, excluding government guaranteed loans to total assets (Non-GAAP) (%) | 0.01% | 0.01% | 0.01% | [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements, highlighting risks and uncertainties that may cause actual results to differ - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[34](index=34&type=chunk) - Risk factors include local market economic conditions, credit risk in lending activities, changes in interest rate levels, regulatory or legislative changes, and the company's ability to attract and retain deposits[34](index=34&type=chunk) - The company cautions readers not to place undue reliance on any forward-looking statements and disclaims any obligation to revise them[35](index=35&type=chunk) [Consolidated Financial Statements & Supplementary Data](index=8&type=section&id=Consolidated%20Financial%20Statements%20%26%20Supplementary%20Data) Unaudited consolidated financial statements, including balance sheets, income statements, and supplementary data [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present assets, liabilities, and shareholders' equity for the specified periods Consolidated Balance Sheets (Selected Items, in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | **Assets:** | | | | | Cash and cash equivalents ($) | $34,172 | $29,414 | $27,804 | | Investment securities ($) | 316,255 | 322,515 | 363,188 | | Loans receivable, net ($) | 1,052,654 | 1,047,086 | 1,029,701 | | Total assets ($) | $1,516,643 | $1,513,323 | $1,538,260 | | **Liabilities:** | | | | | Deposits ($) | $1,209,893 | $1,232,328 | $1,219,679 | | FHLB Advances ($) | 102,500 | 76,400 | 113,504 | | Total liabilities ($) | 1,354,642 | 1,353,309 | 1,382,352 | | **Shareholders' Equity:** | | | | | Total shareholders' equity ($) | 162,001 | 160,014 | 155,908 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail revenues, expenses, and net income for the specified periods Consolidated Statements of Income (Selected Items, in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | **Interest Income:** | | | | | Total interest and dividend income ($) | $15,375 | $14,494 | $14,399 | | **Interest Expense:** | | | | | Total interest expense ($) | 5,534 | 5,301 | 5,578 | | Net interest income ($) | 9,841 | 9,193 | 8,821 | | Provision for credit losses ($) | - | - | - | | **Non-Interest Income:** | | | | | Total non-interest income, net ($) | 3,426 | 3,707 | 3,367 | | **Non-Interest Expense:** | | | | | Total non-interest expense ($) | 11,720 | 11,438 | 10,969 | | Income before income taxes ($) | 1,547 | 1,462 | 1,219 | | Provision for income taxes ($) | 322 | 314 | 253 | | Net income ($) | $1,225 | $1,148 | $966 | | Diluted earnings per common share ($) | $0.06 | $0.05 | $0.05 | [Selected Operating Data](index=10&type=section&id=Selected%20Operating%20Data) Key operating metrics, including average balances, asset quality, capital ratios, and per-share data, are provided Selected Operating Data (Key Ratios) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Efficiency Ratio (%) | 88.34% | 88.67% | 90.00% |\ | Return on Average Assets (%) | 0.33% | 0.31% | 0.25% |\ | Return on Average Equity (%) | 3.04% | 2.91% | 2.49% |\ | Net Interest Margin (%) | 2.78% | 2.65% | 2.47% |\ | Non-Performing Loans to Total Loans Ratio (%) | 0.01% | 0.01% | 0.04% |\ | Allowance for Credit Losses to Total Loans Ratio (%) | 1.44% | 1.45% | 1.47% |\ | Total Capital (to Risk-Weighted Assets) (%) | 16.56% | 16.48% | 16.18% |\ | Tangible Book Value Per Share (Non-GAAP) ($) | $6.43 | $6.33 | $6.09 | Average Balances (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Average interest-earning assets ($) | $1,424,130 | $1,412,406 | $1,437,245 | | Average loans ($) | 1,066,712 | 1,047,718 | 1,027,777 | | Average deposits ($) | 1,195,612 | 1,219,130 | 1,212,018 | [Loan Portfolio Composition](index=11&type=section&id=Loan%20Portfolio%20Composition) Details on commercial, construction, and overall loan portfolio composition by type are presented Loan Portfolio Composition (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | **Commercial and Construction** | | | | | Commercial business ($) | $231,826 | $232,935 | $238,493 | | Other real estate mortgages ($) | 693,882 | 688,246 | 663,715 | | Real estate construction ($) | 20,133 | 29,182 | 39,958 | | Total commercial and construction ($) | 945,841 | 950,363 | 942,166 | | **Consumer** | | | | | One-to-four family real estate ($) | 98,147 | 97,683 | 96,083 | | Other installment ($) | 24,092 | 14,414 | 6,816 | | Total consumer ($) | 122,239 | 112,097 | 102,899 | | Total loans ($) | $1,068,080 | $1,062,460 | $1,045,065 | [Detail of Non-Performing Assets](index=11&type=section&id=Detail%20of%20Non-Performing%20Assets) Detailed breakdown of non-performing assets by commercial, real estate, and consumer categories Detail of Non-Performing Assets (June 30, 2025, in thousands) | (in thousands) | Southwest Washington ($) | Total ($) | | :--------------------- | :--------- | :--- | | Commercial business ($) | $32 | $32 | | Commercial real estate ($) | 82 | 82 | | Consumer ($) | 29 | 29 | | Total non-performing assets ($) | $143 | $143 |

Core Viewpoint - Riverview Bancorp (RVSB) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, marking a 20% earnings surprise [1]. Financial Performance - The company achieved revenues of $13.27 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.25%, compared to $12.19 million in the same quarter last year [2]. - Over the last four quarters, Riverview Bancorp has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2]. Stock Performance - Riverview Bancorp shares have declined approximately 5.9% since the beginning of the year, while the S&P 500 has gained 8.6% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $13.8 million, and for the current fiscal year, it is $0.24 on revenues of $55.4 million [7]. - The estimate revisions trend for Riverview Bancorp was mixed ahead of the earnings release, which may change following the recent report [6]. Industry Context - The Financial - Savings and Loan industry, to which Riverview Bancorp belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Performance - Riverview Bancorp reported earnings of $1.2 million, or $0.06 per diluted share, for the first fiscal quarter ended June 30, 2025, an increase from $1.1 million, or $0.05 per diluted share, in the previous quarter and $966,000, or $0.05 per diluted share, in the same quarter last year [1][39] - Net interest income rose to $9.8 million in the current quarter, compared to $9.2 million in the preceding quarter and $8.8 million in the first fiscal quarter a year ago [4][39] - The net interest margin (NIM) improved to 2.78%, a 13 basis point increase from 2.65% in the previous quarter and a 31 basis point increase from 2.47% in the same quarter last year [5][39] Loan and Deposit Activity - Total loans increased by $5.6 million to $1.07 billion at June 30, 2025, compared to $1.06 billion three months earlier and $1.05 billion a year earlier [12] - The loan pipeline was $72.0 million at June 30, 2025, up from $41.1 million at the end of the previous quarter and $32.3 million a year ago [12] - Total deposits decreased by $22.4 million to $1.21 billion at June 30, 2025, compared to $1.23 billion at March 31, 2025, and decreased by $9.8 million compared to a year ago [15] Credit Quality - Non-performing loans totaled $143,000, or 0.01% of total loans, as of June 30, 2025, unchanged from the previous quarter and down from $160,000, or 0.04% of total loans, a year ago [18] - The allowance for credit losses remained stable at $15.4 million, representing 1.44% of total loans [21] Strategic Initiatives - The company is focused on enhancing operational performance and expanding digital capabilities as part of a three-year strategic plan [2][3] - Riverview Bancorp was added to the Russell 3000 and Russell 2000 Indexes, enhancing visibility within the institutional investment community [3] Shareholder Returns - The company paid a cash dividend of $0.02 per share on July 22, 2025, to shareholders of record on July 10, 2025 [17] - Shareholders' equity increased to $162.0 million at June 30, 2025, compared to $160.0 million three months earlier and $155.9 million a year earlier [17]

Core Points - Riverview Bancorp, Inc. has been added to the Russell 3000 Index and Russell 2000 Index as of June 30, 2025, marking a significant milestone for the company [1][2] - The inclusion in the Russell Indices is expected to enhance visibility among institutional investors and reflects the company's commitment to being a leading community bank in the Pacific Northwest [2] - As of June 2024, approximately $10.6 trillion in assets are benchmarked against the Russell US indexes, indicating the importance of these indices in the investment management industry [2] Company Overview - Riverview Bancorp, Inc. is headquartered in Vancouver, Washington, with total assets of $1.51 billion as of March 31, 2025 [4] - The company operates Riverview Bank and Riverview Trust Company, providing community banking services through 17 branches and 3 lending centers [4] - Riverview has been recognized as the Best Bank by readers of The Vancouver Business Journal and The Columbian for the past 11 years [4] Industry Context - FTSE Russell, the provider of the Russell indexes, is a global leader in index benchmarking, with approximately $18.1 trillion benchmarked to its indexes [6] - FTSE Russell's indexes cover 98% of the investable market globally, highlighting their significance for institutional and retail investors [6]

Industry Overview - The Zacks Savings and Loan industry is experiencing benefits from an improving lending environment due to the Federal Reserve's interest rate cuts, leading to stable funding costs and supporting net interest income (NII) and net interest margin (NIM) expansion [1][4] - The industry consists of specialized U.S. banks focusing on residential mortgage finance, offering various loan products and funding mortgages with savings insured by the FDIC [3] Industry Trends - Lower interest rates are expected to enhance NII and margins for savings and loan companies, which have faced pressure from higher funding costs [4] - A decline in mortgage rates is anticipated to boost purchase originations and refinancing activities, increasing loan demand across various categories [5] - Companies are transitioning to digital operations to remain competitive, despite facing challenges from legacy technologies [6][7] Asset Quality Concerns - Prolonged higher interest rates may lead to a deterioration in asset quality, as portfolio companies struggle to service debt amid geopolitical risks and tariff uncertainties [8] Industry Performance - The Zacks Savings and Loan industry ranks 14, placing it in the top 6% of over 245 Zacks industries, indicating solid prospects for outperformance [9][10] - The industry has underperformed the Zacks Finance sector but outperformed the S&P 500, with a collective gain of 20% over the past year compared to the S&P 500's 10.5% increase [12] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 1.72X, below the five-year median of 1.97X, indicating a discount compared to the broader market [16][18] Company Highlights - **WSFS Financial**: With $20.5 billion in assets, the company expects mid-single-digit growth in commercial lending and a net interest margin of 3.80% for 2025, with a Zacks Consensus Estimate for current-year earnings at $4.59, reflecting a 4.6% year-over-year rise [21][22][23] - **Provident Financial**: After merging with Lakeland Bancorp, the company has $24.2 billion in assets and is expected to see a 69.4% year-over-year rise in earnings to $2.05 for 2025, with shares climbing 29.1% over the past year [26][29] - **Riverview Bancorp**: With assets of $1.51 billion, the company is focused on expanding revenue through commercial banking initiatives, expecting a 4.4% increase in earnings to 24 cents for fiscal 2025, with shares gaining 41.6% in the past year [32][34]

Credit Losses and Loan Portfolio - The Company recorded a provision for credit losses of $100,000 for the fiscal year ended March 31, 2025, compared to no provision for the fiscal year ended March 31, 2024[59]. - As of March 31, 2025, the Allowance for Credit Losses (ACL) was $15.4 million, or 1.45% of total loans, down from 1.50% at March 31, 2024[60]. - Net charge-offs totaled $90,000 for the fiscal year ended March 31, 2025, compared to net recoveries of $13,000 for the prior fiscal year[60]. - Criticized loans increased by $11.8 million to $48.5 million at March 31, 2025, representing approximately 4.56% of the total loan portfolio[61]. - Classified loans increased by $2.2 million to $2.9 million at March 31, 2025, primarily due to the downgrade of a $2.0 million commercial real estate loan[63]. - The Company's ACL coverage ratio for nonperforming loans exceeded 9,900% at March 31, 2025, compared to 8,600% at the end of the prior fiscal year[60]. - The general valuation allowance for pooled loans was 1.45% at March 31, 2025, compared to 1.50% at March 31, 2024[60]. - The total loans outstanding increased to $1,062,460,000 at March 31, 2025, from $1,024,013,000 at March 31, 2024[68]. Investment Portfolio - The investment portfolio consisted solely of debt securities as of March 31, 2025, with no equity securities held[69]. - The Company does not have any exposure to sub-prime lending in its investment securities portfolio[71]. - Total investment securities decreased from $372.7 million in 2024 to $322.5 million in 2025, representing a decline of approximately 13.5%[72]. - The weighted average yield on total available-for-sale securities was 2.09% as of March 31, 2025[72]. Deposits and Borrowings - Core branch deposits increased by $2.2 million from March 31, 2024, to March 31, 2025, reflecting a focus on organic growth in client relationships[78]. - The average balance of interest-bearing checking accounts rose to $261.5 million in 2025, with an average interest rate of 1.00%, compared to $243.9 million and 0.32% in 2024[77]. - FHLB advances totaled $76.4 million as of March 31, 2025, down from $88.3 million in 2024, indicating a reduction in reliance on external borrowings[82]. - The weighted average rate on FHLB advances was 5.17% in 2025, slightly down from 5.40% in 2024[84]. - The Company had $288.0 million of uninsured deposits as of March 31, 2025, compared to $297.2 million in 2024, reflecting a decrease in risk exposure[81]. - The Company had $36.0 million in CDARS and ICS deposits, representing 2.92% of total deposits, which provide clients with access to FDIC insurance beyond the standard limit[78]. - The average balance of money market accounts was $224.1 million in 2025, with an average interest rate of 1.86%, up from $233.7 million and 1.22% in 2024[77]. Employee and Workforce Information - As of March 31, 2025, the Company had 238 full-time equivalent employees, with an average tenure of 6.8 years[88]. - The workforce composition is approximately 65% women and 35% men, with 54% of management roles held by women[89]. - The Company believes its relationship with employees is good, with no employees represented by a collective bargaining unit[88]. - The Company promotes training and continuing education as an ongoing function for its employees[90]. Financial Performance and Capitalization - The Bank met the requirements to be "well capitalized" as of March 31, 2025, with a CET1 risk-based ratio of 6.5% and a Tier 1 risk-based ratio of 8%[113]. - The Company maintains a capital conservation buffer greater than 2.5% of risk-weighted assets to avoid limitations on paying dividends and engaging in share repurchases[112]. - Riverview Services reported a net income of $10,000 and total assets of $1.4 million for the fiscal year ended March 31, 2025[93]. - The Trust Company had a net income of $2.2 million and total assets of $12.9 million at March 31, 2025, with total assets under management of $877.9 million[94]. Regulatory and Compliance Issues - The Company has not elected to use the Community Bank Leverage Ratio (CBLR) framework as of March 31, 2025[110]. - The Bank is not required to maintain any reserve balances as of March 31, 2025[131]. - Riverview is subject to comprehensive regulation by the Federal Reserve under the Bank Holding Company Act, requiring semi-annual reports and compliance with extensive regulations[143]. - Non-compliance with the USA PATRIOT Act and Bank Secrecy Act could result in fines or sanctions, impacting the company's ability to obtain regulatory approval for acquisitions[193]. - The Federal Reserve's policy on cash dividends requires that net income for the past year must be sufficient to fully fund dividends, and companies experiencing financial problems should not borrow to pay dividends[149]. Risk Management and Strategic Considerations - The company has established an enterprise risk management framework to balance risk and return, critical for optimizing shareholder value[194]. - Climate change and related regulatory initiatives may materially affect the company's business and results of operations, with potential adverse impacts from severe weather events[195][196]. - Cybersecurity risks remain a significant concern, with potential breaches leading to financial losses, reputational damage, and increased costs[197][198][199]. - The company faces risks related to fraud and financial crimes, which have been increasing nationally, potentially resulting in financial losses and reputational harm[204]. - The adoption of Artificial Intelligence (AI) introduces model risk and regulatory compliance challenges, necessitating robust governance and oversight[205][207]. - Acquisitions are part of the company's growth strategy but involve risks such as asset quality issues, client loss, and integration challenges[211][212]. - The company relies on external vendors for key operational components, exposing it to risks if vendors fail to meet contractual obligations[214]. - Goodwill impairment could reduce earnings, as the company must evaluate goodwill annually and make subjective judgments regarding fair value[210]. - The company’s financial results depend on management's accounting methods and assumptions, which could lead to unexpected losses if incorrect[208][209]. - The board of directors oversees the risk management process, including cybersecurity risks, engaging with management on these issues[203]. - Ineffective liquidity management could adversely affect the company's financial results and condition, with potential negative impacts from decreased business activity or adverse regulatory actions[215]. - Future growth or losses may require the company to raise additional capital, which may not be available or could be costly, impacting expansion and financial condition[218]. - Regulatory changes regarding Diversity, Equity and Inclusion (DEI) and Environmental, Social and Governance (ESG) practices may adversely impact the company's reputation and compliance costs[219]. - The company faces intense competition in loan making and deposit attraction, which could reduce net interest income and profitability[224]. - Retaining and recruiting key management personnel is critical for the company's success, with intense competition for qualified employees in the banking industry[225]. - The company relies on dividends from the Bank for substantially all of its revenue at the holding company level, and any inability to receive dividends could adversely affect its financial condition[226].

Financial Performance - Net income for the fourth fiscal quarter 2025 was $1.1 million, or $0.05 per diluted share, compared to $1.2 million, or $0.06 per diluted share, in the previous quarter[4] - For fiscal 2025, net income increased to $4.9 million, or $0.23 per diluted share, compared to $3.8 million, or $0.18 per diluted share, for fiscal 2024[5] - Net income for the quarter was $1,148,000, with basic earnings per share of $0.05[37] - Net income for the three months ended March 31, 2025, was $1,148,000, a decrease of 6.8% from $1,232,000 in the previous quarter[45] - Basic earnings per share for the three months ended March 31, 2025, were $0.05, down from $0.06 in the previous year[49] Income and Expenses - Net interest income for the fourth quarter was $9.2 million, an increase from $8.6 million in the same quarter last year, with a net interest margin of 2.65%[10] - Total interest and dividend income for the three months ended March 31, 2025, was $14,494,000, a decrease of 4.2% from $15,127,000 for the previous quarter[45] - Net interest income after provision for credit losses for the twelve months ended March 31, 2025, was $36,244,000, down from $38,086,000 for the previous year, reflecting a decrease of 4.8%[45] - Non-interest income rose to $3.7 million in the fourth quarter, compared to $494,000 in the same quarter last year, contributing to a total of $14.3 million for fiscal 2025[16] - Non-interest income for the three months ended March 31, 2025, increased to $3,707,000, compared to $3,341,000 in the previous quarter, marking a growth of 11%[45] - Total non-interest expense for the three months ended March 31, 2025, was $11,438,000, an increase of 2.5% from $11,154,000 in the previous quarter[45] Loans and Assets - Total loans increased to $1.06 billion at March 31, 2025, up from $1.02 billion a year earlier, with new loan originations during the quarter at $49.4 million[20] - Loans receivable net of allowance for credit losses increased to $1.05 billion from $1.03 billion as of December 31, 2024, reflecting a growth of approximately 1.3%[44] - Total commercial and construction loans increased to $950,363,000 as of March 31, 2025, up from $925,907,000 a year earlier, representing a growth of 2.5%[47] - The total loans receivable, net, increased to $1,047,086,000 as of March 31, 2025, from $1,008,649,000 a year earlier, marking a growth of 3.8%[47] - As of March 31, 2025, Riverview Bancorp, Inc. has total assets of $1.51 billion, a slight increase from $1.51 billion on December 31, 2024[41] Deposits and Equity - Total deposits were $1.23 billion at March 31, 2025, unchanged from the previous year, with a $13.3 million increase during the quarter[23] - Total deposits as of March 31, 2025, increased to $1,232,328,000 from $1,219,002,000 in the previous quarter, reflecting a growth of 1.7%[46] - Shareholders' equity increased to $160.0 million at March 31, 2025, up from $158.3 million at December 31, 2024, and $155.6 million a year earlier[25] Asset Quality - Non-performing assets remained low at $155,000, or 0.01% of total assets, with no provision for credit losses recorded during the current quarter[11] - Non-performing loans totaled $155,000 or 0.01% of total loans as of March 31, 2025, down from $168,000 or 0.02% at December 31, 2024[26] - Total non-performing assets remained stable at $155,000 as of March 31, 2025, unchanged from the previous year[48] - The coverage ratio decreased to 80.37% as of March 31, 2025, from 84.17% a year earlier, reflecting a decline in the ability to cover non-performing assets[49] Capital and Liquidity - Riverview maintained a total risk-based capital ratio of 16.27% and a Tier 1 leverage ratio of 11.10% at March 31, 2025[30] - The company had approximately $471.3 million in available liquidity at March 31, 2025, including $174.0 million of borrowing capacity from the FHLB[31] - The uninsured deposit ratio was 23.4% at March 31, 2025, with available liquidity under both the FHLB and FRB borrowing lines covering 163.7% of estimated uninsured deposits[32] Operational Efficiency - The efficiency ratio for the fourth quarter was 88.7%, compared to 144.9% in the same quarter last year, indicating improved operational efficiency[18] - The efficiency ratio for the three months ended March 31, 2025, was 88.67%, compared to 90.48% for the same period in 2024, indicating improved operational efficiency[49] Recognition and Community Presence - Riverview Bancorp has maintained its position as a community bank with 17 branches, focusing on high-quality service and financial products[41] - The company has been recognized as the Best Bank by local readers for 11 consecutive years, highlighting its strong community presence[41] Risks and Forward-Looking Statements - Riverview Bancorp is subject to various risks including economic conditions, credit risks, and regulatory changes that could impact its financial performance[42] - The company does not undertake any obligation to revise forward-looking statements, emphasizing the uncertainty in future projections[43]

Core Insights - Riverview Bancorp (RVSB) reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, and showing an increase from $0.04 per share a year ago, resulting in an earnings surprise of 66.67% [1] - The company achieved revenues of $12.9 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.03%, and up from $9.05 million year-over-year [2] - Riverview Bancorp shares have increased approximately 3% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $13 million, and for the current fiscal year, it is $0.24 on revenues of $53.7 million [7] - The estimate revisions trend for Riverview Bancorp is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Savings and Loan industry, to which Riverview Bancorp belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Riverview Bancorp reported a net income of $1.1 million, or $0.05 per diluted share, for the fourth fiscal quarter ended March 31, 2025, a decrease from $1.2 million, or $0.06 per diluted share, in the previous quarter [2][4] - For fiscal 2025, net income increased to $4.9 million, or $0.23 per diluted share, compared to $3.8 million, or $0.18 per diluted share, for fiscal 2024 [3][9] - The company experienced a net interest income of $9.2 million for the quarter, up from $8.6 million in the same quarter last year, with a net interest margin of 2.65% [2][8] Financial Performance - Net interest income for fiscal 2025 was $36.3 million, down from $38.1 million in fiscal 2024, attributed to increased interest expenses [7] - Non-interest income rose to $3.7 million in the fourth quarter, compared to $494,000 in the same quarter last year, largely due to a strategic investment restructure [12] - Non-interest expense decreased to $11.4 million in the fourth quarter from $13.1 million a year ago, reflecting improved operational efficiency [14] Asset Quality - Non-performing assets remained low at $155,000, or 0.01% of total assets, consistent with the previous year [9][22] - The allowance for credit losses was stable at $15.4 million, representing 1.45% of total loans [26] Balance Sheet Highlights - Total loans increased to $1.06 billion at March 31, 2025, compared to $1.02 billion a year earlier [9][16] - Total deposits were $1.23 billion, unchanged from the previous year, with a notable increase in non-interest checking accounts [19] - Shareholders' equity rose to $160.0 million, with tangible book value per share increasing to $6.33 [21] Strategic Initiatives - The company completed a three-year strategic plan focusing on profitable growth and digital leadership, emphasizing employee and client engagement [5] - Riverview's loan production outperformed the previous four quarters, indicating a strong relationship-focused approach [4] Capital and Liquidity - Riverview maintained a total risk-based capital ratio of 16.27% and a Tier 1 leverage ratio of 11.10%, well above regulatory requirements [27] - The company had approximately $471.3 million in available liquidity, including borrowing capacity from the FHLB and the Federal Reserve Bank [28][29]