Riverview Bancorp(RVSB) - 2024 Q3 - Quarterly Report

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].