Riverview Bancorp(RVSB) - 2026 Q1 - Quarterly Results

Executive Summary & Company Overview Fiscal Q1 2026 Key Financial Highlights 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] - Completed a $2 million share repurchase program in September 2024 and approved a new $2 million program on April 29, 2025[2] Management Commentary & Strategic Outlook 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][4] - The company has initiated a three-year strategic plan focusing on sustainable growth, expanding digital capabilities, and leveraging data-driven strategic business decisions[4] - 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] About Riverview 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] - As of June 30, 2025, the company's total assets were $1.52 billion[33] - The company provides community banking services through 17 branches (13 in the Portland-Vancouver metropolitan area) and 3 loan centers[33] Financial Performance Review Net Interest Income and Net Interest Margin 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] - Investment securities decreased by $6.3 million to $316.3 million this quarter, with no investment purchases made in fiscal Q1[7] Non-Interest Income 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] - 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] Non-Interest Expense and Efficiency 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] - Professional fees decreased as the company transitioned from external consultants to permanent internal positions[11] Income Taxes 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 Loans and Loan Portfolio 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] - 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] Deposits and Funding 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] - Certificates of deposit balances increased this quarter, driven by continued customer demand for higher yields[16] Shareholders' Equity 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] Credit Quality Non-Performing Assets and Loans 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] Loan Recoveries and Provision for Credit Losses 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 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] - 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] Allowance for Credit Losses 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 Capital Ratios 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] Liquidity Position 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] - Available liquidity under FHLB and FRB borrowing lines covers 160.2% of estimated uninsured deposits[25] Share Repurchase Programs 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] - On April 24, 2025, the Board of Directors approved a new $2 million share repurchase program, with no repurchases made under it as of June 30, 2025[27] Non-GAAP Financial Measures Reconciliation This section reconciles non-GAAP metrics to GAAP, providing supplementary information for performance assessment Tangible Shareholders' Equity and Book Value Reconciliation Reconciliation of GAAP to tangible shareholders' equity, total assets, and book value per share Tangible Shareholders' Equity and Book Value Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Shareholders' Equity (GAAP) ($) | $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 | $6.09 | Pre-tax, Pre-provision Income Reconciliation Reconciliation of GAAP net income to pre-tax, pre-provision income by adjusting for taxes and credit losses Pre-tax, Pre-provision Income Reconciliation (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Net Income (Loss) (GAAP) ($) | $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 | $1,219 | Allowance for Credit Losses Reconciliation (Excluding Government Guaranteed Loans) Reconciliation of allowance for credit losses to total loans, excluding government-guaranteed loans Allowance for Credit Losses Reconciliation (Excluding Government Guaranteed Loans) (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------- | :------------ | | Allowance for Credit Losses ($) | $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 | $994,627 | | Allowance for credit losses to loans receivable (GAAP) (%) | 1.44% | 1.45% | 1.47% | | Allowance for credit losses to loans receivable, excluding government guaranteed loans (Non-GAAP) (%) | 1.51% | 1.51% | 1.54% | Non-Performing Loans Reconciliation (Excluding Government Guaranteed Loans) Reconciliation of GAAP non-performing loans to adjusted non-performing loans, excluding government-guaranteed loans Non-Performing Loans Reconciliation (Excluding Government Guaranteed Loans) (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------------------ | :------------ | :------------- | :------------ | | Non-performing loans (GAAP) ($) | $143 | $155 | $461 | | Less: Non-performing government guaranteed loans ($) | - | - | (301) | | Non-performing loans, adjusted, excluding government guaranteed loans (Non-GAAP) ($) | $143 | $155 | $160 | | Non-performing loans to total loans (GAAP) (%) | 0.01% | 0.01% | 0.04% | | Non-performing loans, excluding government guaranteed loans to total loans (Non-GAAP) (%) | 0.01% | 0.01% | 0.02% | | Non-performing loans to total assets (GAAP) (%) | 0.01% | 0.01% | 0.03% | | Non-performing loans, excluding government guaranteed loans to total assets (Non-GAAP) (%) | 0.01% | 0.01% | 0.01% | Forward-Looking Statements This section contains forward-looking statements, highlighting risks and uncertainties that may cause actual results to differ - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[34] - Risk factors include local market economic conditions, credit risk in lending activities, changes in interest rate levels, regulatory or legislative changes, and the company's ability to attract and retain deposits[34] - The company cautions readers not to place undue reliance on any forward-looking statements and disclaims any obligation to revise them[35] Consolidated Financial Statements & Supplementary Data Unaudited consolidated financial statements, including balance sheets, income statements, and supplementary data Consolidated Balance Sheets The consolidated balance sheets present assets, liabilities, and shareholders' equity for the specified periods Consolidated Balance Sheets (Selected Items, in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Assets: | | | | | Cash and cash equivalents ($) | $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 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 | $0.05 | Selected Operating Data Key operating metrics, including average balances, asset quality, capital ratios, and per-share data, are provided Selected Operating Data (Key Ratios) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Efficiency Ratio (%) | 88.34% | 88.67% | 90.00% |\ | Return on Average Assets (%) | 0.33% | 0.31% | 0.25% |\ | Return on Average Equity (%) | 3.04% | 2.91% | 2.49% |\ | Net Interest Margin (%) | 2.78% | 2.65% | 2.47% |\ | Non-Performing Loans to Total Loans Ratio (%) | 0.01% | 0.01% | 0.04% |\ | Allowance for Credit Losses to Total Loans Ratio (%) | 1.44% | 1.45% | 1.47% |\ | Total Capital (to Risk-Weighted Assets) (%) | 16.56% | 16.48% | 16.18% |\ | Tangible Book Value Per Share (Non-GAAP) ($) | $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 ($) | 1,195,612 | 1,219,130 | 1,212,018 | Loan Portfolio Composition Details on commercial, construction, and overall loan portfolio composition by type are presented Loan Portfolio Composition (in thousands) | (in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Commercial and Construction | | | | | Commercial business ($) | $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 | $1,045,065 | Detail of Non-Performing Assets Detailed breakdown of non-performing assets by commercial, real estate, and consumer categories Detail of Non-Performing Assets (June 30, 2025, in thousands) | (in thousands) | Southwest Washington ($) | Total ($) | | :--------------------- | :--------- | :--- | | Commercial business ($) | $32 | $32 | | Commercial real estate ($) | 82 | 82 | | Consumer ($) | 29 | 29 | | Total non-performing assets ($) | $143 | $143 |