Executive Summary & Highlights Riverview Bancorp reported a Q4 FY2024 net loss from balance sheet restructuring and litigation, maintaining strong asset quality and capital [Company Announcement & Strategic Actions](index=1&type=section&id=Company%20Announcement%20%26%20Strategic%20Actions) Riverview Bancorp strategically restructured its balance sheet, selling lower-yielding securities to repay FHLB advances, incurring a $2.7 million pre-tax loss and a $2.3 million litigation charge - Riverview strategically restructured its balance sheet by selling approximately **$46.2 million** of lower-yielding investment securities and using the **$43.5 million** proceeds to repay higher-cost Federal Home Loan Bank (FHLB) advances[1](index=1&type=chunk) - The balance sheet restructuring resulted in a total pre-tax loss of **$2.7 million**, with an after-tax impact of **$2.1 million**, or **$0.10 per diluted share**[1](index=1&type=chunk) - The Company recorded a **$2.3 million** expense in other non-interest expense for the fourth fiscal quarter of 2024, reflecting an estimate of litigation costs exceeding insurance coverage for a proposed global settlement involving a former business client[2](index=2&type=chunk) [Fourth Quarter & Fiscal Year 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%20%26%20Fiscal%20Year%202024%20Highlights) Riverview reported a net loss of $3.0 million, or $0.14 per diluted share, for Q4 FY2024, primarily due to balance sheet restructuring and litigation, with fiscal year 2024 net income at $3.8 million Net Income (Loss) and Diluted EPS | Period | Net Income (Loss) | Diluted EPS | | :-------------------- | :---------------- | :---------- | | Q4 FY2024 | $(3.0) million | $(0.14) | | Q3 FY2024 | $1.5 million | $0.07 | | Q4 FY2023 | $3.0 million | $0.14 | | FY2024 | $3.8 million | $0.18 | | FY2023 | $18.1 million | $0.83 | - Completed balance sheet restructuring transactions[5](index=5&type=chunk) Net Interest Income and Margin (NIM) | Metric | Q4 FY2024 | Q3 FY2024 | Q4 FY2023 | | :---------------- | :-------- | :-------- | :-------- | | Net Interest Income | $8.6 million | $9.3 million | $11.8 million | | NIM | 2.32% | 2.49% | 3.16% | - Asset quality remained pristine, with non-performing assets at **$178,000**, or **0.01% of total assets** at March 31, 2024[12](index=12&type=chunk) - Riverview recorded no provision for credit losses during the current quarter or the preceding quarter[12](index=12&type=chunk) - Total loans were **$1.02 billion** and total deposits were **$1.23 billion** at March 31, 2024[12](index=12&type=chunk) - Available liquidity was approximately **$495.7 million** at March 31, 2024[12](index=12&type=chunk) - Total risk-based capital ratio was **16.32%** and Tier 1 leverage ratio was **10.29%**[12](index=12&type=chunk) - The Company has initiated a nationwide search for a permanent President/CEO, anticipated to be identified within three to six months[12](index=12&type=chunk) Income Statement Review The income statement reflects a decrease in net interest income and a significant increase in non-interest expense, leading to a net loss for the quarter [Net Interest Income and Margin (NIM)](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin%20(NIM)) Net interest income decreased to $8.6 million in Q4 FY2024, driven by higher interest expense on deposits and borrowings, with NIM declining to 2.32% Net Interest Income Trends | Period | Net Interest Income | | :-------------------- | :------------------ | | Q4 FY2024 | $8.6 million | | Q3 FY2024 | $9.3 million | | Q4 FY2023 | $11.8 million | | FY2024 | $38.1 million | | FY2023 | $51.6 million | Net Interest Margin (NIM) Trends | Period | NIM | | :-------------------- | :------ | | Q4 FY2024 | 2.32% | | Q3 FY2024 | 2.49% | | Q4 FY2023 | 3.16% | | FY2024 | 2.56% | | FY2023 | 3.26% | - Investment securities decreased **$56.4 million** during the quarter to **$372.7 million** at March 31, 2024, with a weighted average yield of **2.02%** for Q4 FY2024[9](index=9&type=chunk) - Yield on loans improved to **4.63%** during Q4 FY2024, compared to **4.56%** in the preceding quarter and **4.50%** a year ago, though fixed-rate loan concentration continues to exert pressure[10](index=10&type=chunk) - Deposit costs increased to **1.00%** during Q4 FY2024, up from **0.68%** in the preceding quarter and **0.19%** a year ago[10](index=10&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Non-interest income significantly decreased to $494,000 in Q4 FY2024, primarily due to a $2.7 million loss on investment securities, despite positive growth in asset management fees Non-Interest Income Trends | Period | Non-Interest Income | | :-------------------- | :------------------ | | Q4 FY2024 | $494,000 | | Q3 FY2024 | $3.1 million | | Q4 FY2023 | $3.0 million | | FY2024 | $10.2 million | | FY2023 | $12.2 million | - The decrease in Q4 FY2024 non-interest income was primarily due to a **$2.7 million** loss on sale of investment securities; excluding this loss, non-interest income would have been **$3.2 million**[11](index=11&type=chunk) Asset Management Fees and Assets Under Management (AUM) | Metric | Q4 FY2024 | Q3 FY2024 | Q4 FY2023 | FY2024 | FY2023 | | :-------------------- | :-------- | :-------- | :-------- | :------- | :------- | | Asset Management Fees | $1.4 million | $1.3 million | $1.3 million | $5.3 million | $4.7 million | | AUM (period end) | $961.8 million | $942.4 million | $890.6 million | - | - | - Asset management fees increased **12.5%** to **$5.3 million** in fiscal 2024 compared to **$4.7 million** in fiscal 2023[14](index=14&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense increased significantly to $13.1 million in Q4 FY2024, driven by a $2.3 million litigation expense, higher salary and benefits, and increased occupancy costs, resulting in a 144.9% efficiency ratio Non-Interest Expense Trends | Period | Non-Interest Expense | | :-------------------- | :------------------- | | Q4 FY2024 | $13.1 million | | Q3 FY2024 | $10.6 million | | Q4 FY2023 | $10.0 million | | FY2024 | $43.7 million | | FY22023 | $39.4 million | - Non-interest expense included a **$2.3 million** litigation expense incurred during Q4 FY2024[15](index=15&type=chunk) - Salary and employee benefits increased due to the full quarterly impact of salary increases, higher health insurance costs, and higher payroll taxes[15](index=15&type=chunk) - The efficiency ratio was **144.9%** for Q4 FY2024, compared to **85.2%** in the preceding quarter and **67.3%** a year ago; excluding the securities loss and litigation, the efficiency ratio was **91.8%**[15](index=15&type=chunk) [Net Income (Loss) and EPS](index=3&type=section&id=Net%20Income%20(Loss)%20and%20EPS) The effective tax rate for Q4 FY2024 was (27.0)%, reflecting the pre-tax loss reported for the quarter Effective Tax Rate | Period | Effective Tax Rate | | :-------------------- | :----------------- | | Q4 FY2024 | (27.0)% | | Q3 FY2024 | 20.6% | | Q4 FY2023 | 27.0% | Balance Sheet Review The balance sheet reflects slight loan growth, an increase in deposits primarily from trust company movements, and a significant reduction in FHLB advances [Loans](index=3&type=section&id=Loans) Total loans increased slightly to $1.02 billion at March 31, 2024, reflecting moderated growth due to selective lending and an emphasis on credit quality, with reductions in new originations and pipeline - Total loans increased **$5.8 million** during the quarter to **$1.02 billion** at March 31, 2024, and increased **$15.2 million** compared to a year earlier[17](index=17&type=chunk) - The loan pipeline was **$18.4 million** at March 31, 2024, down from **$29.3 million** at the end of the prior quarter[17](index=1

Financial Position - As of December 31, 2023, total assets amounted to $1,590,623,000, a slight increase from $1,589,712,000 as of March 31, 2023[10]. - Total liabilities decreased to $1,432,151,000 from $1,434,473,000, indicating a reduction of about 0.2%[11]. - Shareholders' equity increased to $158,472,000 from $155,239,000, showing a growth of about 1.5%[11]. - The total intrinsic value of stock options exercised was $28,000 for the nine months ended December 31, 2023, compared to $7,000 in the same period of 2022[30]. - The total available for sale investment securities as of December 31, 2023, had an amortized cost of $219,429,000 and a fair value of $196,461,000, reflecting unrealized losses of $23,024,000[42]. - The total held to maturity investment securities as of December 31, 2023, had an amortized cost of $232,659,000 and a fair value of $200,475,000, reflecting unrealized losses of $32,184,000[42]. - The Company’s investment securities totaled $429.1 million at December 31, 2023, a decrease from $455.3 million at March 31, 2023, attributed to normal pay downs, calls, and maturities[154]. Loans and Credit Quality - Loans receivable net of allowance for credit losses increased to $1,002,838,000 from $993,547,000, reflecting a growth of approximately 1.3%[10]. - The allowance for credit losses stood at $15,361,000 as of December 31, 2023, compared to $15,309,000 as of March 31, 2023[10]. - The total loans receivable as of December 31, 2023, amount to $1,018.199 million, with an allowance for credit losses (ACL) of $15.361 million[51]. - The Company has not engaged in sub-prime mortgage lending, indicating a conservative lending strategy[52]. - The Company monitors credit risk using a risk rating system for commercial loans, with ratings ranging from 1 to 9[54]. - The allowance for loan losses at December 31, 2023, was $15,361,000, an increase from $15,346,000 at the end of the previous quarter[69]. - Non-accrual loans totaled $148,000 with no allowance for credit losses (ACL) and $38,000 with an ACL of $1,000 as of December 31, 2023[74]. - The total charge-offs for the nine months ended December 31, 2023, were $13,000, with recoveries of $23,000 during the same period[69]. - The Company evaluates the ACL for loans based on ongoing quarterly assessments of known and inherent risks in the loan portfolio[67]. Income and Expenses - Total interest and dividend income for Q3 2023 was $14,272,000, a decrease of 1.18% from $14,443,000 in Q3 2022[12]. - Net interest income for Q3 2023 was $9,324,000, down 31.5% from $13,700,000 in Q3 2022[12]. - Non-interest income for Q3 2023 increased to $3,056,000, up 3.14% from $2,963,000 in Q3 2022[12]. - Total non-interest expense for Q3 2023 was $10,551,000, an increase of 7.14% compared to $9,848,000 in Q3 2022[12]. - Net income for Q3 2023 was $1,452,000, a decline of 72.3% from $5,240,000 in Q3 2022[12]. - Basic earnings per share for Q3 2023 was $0.07, down from $0.24 in Q3 2022[12]. - The total non-interest income for the nine months ended December 31, 2023, was $9,748,000, an increase from $9,223,000 in the same period of 2022[110]. Dividends and Shareholder Returns - Cash dividends on common stock for Q3 2023 were $1,274,000, with a dividend of $0.06 per share[15]. - For the nine months ended December 31, 2023, net income was $6.8 million, or $0.32 per diluted share, compared to $15.1 million, or $0.69 per diluted share for the same period in 2022[200]. - The current quarterly common stock dividend rate is $0.06 per share, with an expected average total dividend paid each quarter of approximately $1.3 million[182]. - The Company repurchased a total of 394,334 shares at an average cost of $6.34 per share, totaling $2.5 million, completing the repurchase program on May 5, 2023[36]. Capital and Liquidity - The Company’s capital ratios as of December 31, 2023, indicate it is categorized as "well capitalized" under regulatory standards, with total capital to risk-weighted assets at 16.67%[166]. - The Bank's total available liquidity was $682.1 million, or 42.9% of total assets at December 31, 2023[176]. - As of December 31, 2023, the Company had cash and cash equivalents totaling $234.0 million, representing 14.7% of total assets[174]. - The Company had advances totaling $157.1 million from the FHLB and an additional borrowing capacity of $137.8 million with the FHLB as of December 31, 2023[174]. Asset Management and Strategy - The Company aims to enhance non-interest income through increased fees for asset management services and deposit service charges[139]. - The Company is focused on increasing its loan portfolio, particularly in higher-yielding commercial and real estate construction loans, to deliver returns to shareholders[144]. - The Company plans to selectively add new products and services to diversify revenue sources and enhance customer relationships[147]. - The Company aims to enhance its core deposit base by reducing reliance on higher-cost deposits and increasing demand deposits through expanded business banking relationships[149].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Washington | 91-1838969 | | (State or other jurisdiction of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Washington | 9 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the Fiscal Year Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 91-1838969 (State or other jurisdiction of incorporation or organi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Washington ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Washingto ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. | (Exact name of registrant as specified in its charter) | | | --- | --- | | Washington | 9 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-22957 RIVERVIEW BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 91-1838969 (State or other jurisdiction of incorporation or organi ...

Financial Performance - Net income for the three months ended December 31, 2021, was $5,510,000, an increase of 36.5% compared to $4,035,000 for the same period in 2020[14]. - Net income for the nine months ended December 31, 2021, was $17,695,000, compared to $7,058,000 for the same period in 2020, representing a 150% increase[17]. - Earnings per common share for the three months ended December 31, 2021, were $0.25, up from $0.18 in the same period of 2020, representing a 38.9% increase[12]. - Total comprehensive income for the three months ended December 31, 2021, was $4,483,000, compared to $3,825,000 in 2020, reflecting a 17.2% increase[14]. - Basic earnings per share (EPS) for the nine months ended December 31, 2021, was $0.80, an increase from $0.32 in the same period of 2020, with net income rising to $17,695,000 from $7,058,000[38]. Asset and Liability Management - Total assets increased to $1,683,076,000 as of December 31, 2021, up from $1,549,158,000 as of March 31, 2021, representing an increase of approximately 8.6%[11]. - Total liabilities increased to $1,550,525 as of December 31, 2021, compared to $1,291,990 as of the same date in the prior year[201]. - Shareholders' equity increased to $163,141,000, up from $151,594,000, marking a growth of approximately 7.6%[11]. - The Bank maintained a total capital ratio of 16.72% as of December 31, 2021, exceeding the required minimum of 8.0% under regulatory guidelines[156]. Loan Portfolio - Total loans receivable net of allowance for loan losses improved to $947,050,000, compared to $924,057,000 in the previous quarter, reflecting a growth of about 2.7%[11]. - As of December 31, 2021, total loans receivable amounted to $962,223 million, an increase from $943,235 as of March 31, 2021[70]. - The allowance for loan losses decreased to $15,173,000 from $19,178,000, indicating improved credit quality[11]. - The provision for loan losses for the nine months ended December 31, 2021, was a net recapture of $(3,975) million, compared to a provision of $6,300 million for the same period in 2020[58]. Income and Expenses - Total interest and dividend income for the nine months ended December 31, 2021, was $37,436,000, up from $36,479,000 in 2020, reflecting a 2.6% increase[12]. - Non-interest income for the nine months ended December 31, 2021, totaled $9,778,000, a 18.4% increase from $8,254,000 in 2020[12]. - Total non-interest expense for the three months ended December 31, 2021, was $9,279,000, slightly higher than $9,107,000 in 2020, indicating a 1.9% increase[12]. - The Company recorded interest expense on the debentures in the consolidated statements of income, reflecting the financial obligations associated with these instruments[82]. Investment Securities - Investment securities available for sale decreased to $182,303,000 from $216,304,000, reflecting market conditions[11]. - The amortized cost of investment securities as of December 31, 2021, was $396,784,000, with an estimated fair value of $392,330,000, reflecting unrealized losses of $4,454,000[39]. - The total fair value of held-to-maturity investment securities was $178.9 million as of December 31, 2021, down from $38.2 million as of March 31, 2021[48]. Market Strategy and Outlook - Future outlook includes a focus on expanding market presence and enhancing digital banking capabilities to attract new customers[8]. - The company is actively exploring potential acquisitions to bolster its growth strategy and market share[8]. - The Company aims to increase its loan portfolio, particularly in higher-yielding commercial and real estate construction loans, which represented 90.7% of total loans as of December 31, 2021[138]. Operational Efficiency - The company emphasizes the importance of maintaining liquidity and managing operational costs amid economic uncertainties[8]. - The Company has entered into employment contracts with key employees that provide for contingent payments subject to future events[123]. - The Company is reviewing and implementing processes to comply with ASU 2016-13, which is expected to change the allowance for loan losses, although the magnitude of the change is not yet known[103].