Riverview Bancorp(RVSB) - 2026 Q2 - Quarterly Results

Financial Performance - Riverview Bancorp reported net income of $1.1 million, or $0.05 per diluted share, for the second fiscal quarter of 2026, a decrease from $1.6 million, or $0.07 per diluted share, in the same quarter last year[2]. - Net interest income was $9.8 million for the quarter, up from $8.9 million in the second fiscal quarter of 2025, with a net interest margin of 2.76%, an increase of 30 basis points year-over-year[8][9]. - Non-interest income remained stable at $3.8 million, with an increase attributed to an employee retention tax credit and a fintech referral partnership distribution[12]. - Non-interest expense rose to $12.2 million, primarily due to higher salaries and benefits, reflecting investments in relationship banking teams[14]. - Riverview's effective tax rate for the second fiscal quarter was 21.2%, slightly up from 21.4% in the same quarter last year[15]. - Net income for the quarter ended September 30, 2025, was $1,099,000, with pre-tax, pre-provision income of $1,395,000[33]. - Basic earnings per share for the three months ended September 30, 2025, were $0.05, down from $0.07 in the same quarter of 2024[40]. - Basic earnings per share for the three months ended September 30, 2025, was $0.05, a decrease from $0.06 in the previous quarter[44]. Loan and Deposit Activity - Total loans increased by $2.1 million to $1.07 billion compared to the previous quarter, with new loan originations totaling $56.4 million, nearly double the amount from the preceding quarter[16]. - The loan pipeline reached $78.5 million, up from $72.0 million in the previous quarter and significantly higher than $43.5 million a year ago[16]. - Total deposits increased by $26.5 million to $1.24 billion, driven by higher customer demand for CDs and interest checking accounts[20]. - Total deposits as of September 30, 2025, were $1,236,424,000, up from $1,237,499,000 a year earlier, showing a slight decrease of 0.1%[41]. - Average deposits for the six months ended September 30, 2025, were $1,211,682,000, slightly down from $1,214,407,000 for the same period in 2024[41]. Asset Quality and Credit Losses - As of September 30, 2025, non-performing loans totaled $776,000, representing 0.07% of total loans, an increase from $143,000 (0.01%) at June 30, 2025[23]. - Riverview recorded $1,000 in net loan recoveries for the current quarter, compared to $52,000 in the preceding quarter[24]. - The allowance for credit losses was $15.4 million, representing 1.44% of total loans as of September 30, 2025[26]. - The allowance for credit losses was reported at $15,427,000, consistent with the previous quarter[39]. - Non-performing loans increased to $776,000 as of September 30, 2025, from $450,000 a year earlier, resulting in a non-performing loans to total loans ratio of 0.07%[41]. - Total non-performing assets were $776,000 as of September 30, 2025, unchanged from the previous period[43]. Capital and Liquidity - Shareholders' equity increased to $163.5 million, with tangible book value per share rising to $6.51, compared to $6.33 a year earlier[22]. - Riverview maintained a total risk-based capital ratio of 16.51% and a Tier 1 leverage ratio of 11.26% at September 30, 2025[27]. - Available liquidity was approximately $496.1 million, including $207.6 million from FHLB and $288.5 million from the Federal Reserve Bank[28]. - The uninsured deposit ratio was 23.2% at September 30, 2025, with available liquidity covering 160.0% of estimated uninsured deposits[29]. - Tangible common equity to average tangible assets ratio was 9.20% at September 30, 2025[27]. - The total capital ratio to risk-weighted assets was 16.51% as of September 30, 2025, compared to 16.14% a year earlier, indicating a strengthening of capital position[41]. Strategic Focus and Risks - The company is focused on sustainable growth, digital innovation, and operational efficiencies as part of its three-year strategic plan[6]. - The company highlighted potential risks including economic conditions, credit risks, and regulatory changes that could impact future performance[37]. Market Performance - The market price per share closed at $5.37 on September 30, 2025, compared to $5.50 at the end of the previous quarter[44].