Riverview Bancorp(US:RVSB)2024-10-29 14:04Financial Performance - Riverview Bancorp reported net income of $1.6 million, or $0.07 per diluted share, for Q2 FY2025, down from $2.5 million, or $0.12 per diluted share, in the same quarter last year[1]. - Net income (GAAP) for the quarter was $1,557 thousand, compared to $966 thousand in the previous quarter and $2,523 thousand in the same quarter last year[10]. - Net income for the quarter was not specified, but the overall financial health appears stable with a focus on maintaining asset quality[14]. - Basic earnings per share for the three months ended September 30, 2024, was $0.07, compared to $0.05 for the previous quarter, reflecting a 40% increase[15]. - Basic earnings per share increased to $0.07 from $0.05 in the previous quarter and $0.12 a year ago[24]. Income and Revenue - Net interest income for the quarter was $8.9 million, slightly up from $8.8 million in the previous quarter but down from $9.9 million a year ago[2]. - Non-interest income rose to $3.8 million, an increase of $474,000 from the previous quarter and the same quarter last year[2]. - Total interest and dividend income for the three months ended September 30, 2024, was $14,942,000, an increase of 6.5% compared to $14,035,000 for the same period in 2023[15]. - Net interest income after provision for credit losses was $8,842,000 for the three months ended September 30, 2024, compared to $9,851,000 for the same period in 2023, reflecting a decrease of 10.2%[15]. - Non-interest income for the three months ended September 30, 2024, totaled $3,841,000, a decrease of 2.0% from $3,407,000 in the same period last year[15]. Loans and Deposits - Total loans increased by $15.9 million to $1.06 billion compared to the previous quarter and rose by $45.4 million year-over-year[4]. - Total deposits increased by $17.8 million to $1.24 billion compared to the previous quarter, remaining stable year-over-year[4]. - Loans receivable (GAAP) increased to $1,060,977 thousand from $1,045,065 thousand in June 2024 and $1,015,625 thousand in September 2023[10]. - Total deposits reached $1,237,499 million, up from $1,219,679 million in June 2024 and slightly down from $1,239,766 million in September 2023[18]. - Average loans for the three months ended September 30, 2024, were $1,048,536,000, compared to $1,027,777,000 for the previous quarter, indicating a growth of 2.5%[16]. Asset Quality and Credit Losses - The allowance for credit losses was $15.5 million, representing 1.46% of total loans, compared to 1.51% a year earlier[5]. - Non-performing loans (GAAP) were $450 thousand, slightly down from $461 thousand in the previous quarter and significantly up from $198 thousand in September 2023[11]. - The allowance for credit losses to loans receivable (GAAP) was 1.46%, a slight decrease from 1.47% in June 2024 and down from 1.51% in September 2023[10]. - The allowance for credit losses increased to $15,466 million from $15,364 million in June 2024 and $15,346 million in September 2023[20]. - The allowance for credit losses to non-performing loans ratio was 3436.89% as of September 30, 2024, compared to 3332.75% in June 2024 and 7750.51% in September 2023[17]. Capital and Equity - Riverview's total risk-based capital ratio was 16.14% and Tier 1 leverage ratio was 10.72% as of September 30, 2024[6]. - Shareholders' equity (GAAP) increased to $160,774 thousand as of September 30, 2024, up from $155,908 thousand in June 2024, and $152,039 thousand in September 2023[9]. - Tangible shareholders' equity (non-GAAP) rose to $133,477 thousand, compared to $128,586 thousand in June 2024 and $124,638 thousand in September 2023[9]. - Total liabilities stood at $1,387,623,000, up from $1,382,352,000 in the prior quarter, indicating a marginal increase of 0.2%[14]. - The Tier 1 capital ratio was 14.88% as of September 30, 2024, compared to 14.93% in June 2024 and 15.66% in September 2023[17]. Operational Efficiency - The efficiency ratio improved to 83.7% from 90.0% in the previous quarter but was higher than 76.1% a year ago[3]. - Return on average assets increased to 0.40% compared to 0.25% in the previous quarter and 0.62% a year ago[24]. - Return on average equity rose to 3.90% from 2.49% in the previous quarter and 6.33% a year ago[24]. - Total non-interest expense for the three months ended September 30, 2024, was $10,701,000, an increase of 6.1% compared to $10,089,000 for the same period in 2023[15]. - Total yield on interest-earning assets improved to 4.11% from 4.02% in the previous quarter and 3.75% a year ago[24]. Market and Future Outlook - Riverview has expressed concerns regarding potential adverse impacts from economic conditions, including inflation and geopolitical instability, which could affect future performance[13]. - The company continues to explore market expansion opportunities, although specific new strategies were not detailed in the report[14]. - Future guidance was not explicitly provided, but the company remains optimistic about maintaining growth in loans and deposits[14]. - The company initiated a stock repurchase program allowing for the repurchase of up to $2.0 million of its common stock[6]. - Market price per share closed at $4.71, up from $3.99 in the previous quarter but down from $5.56 a year ago[24].