Riverview Bancorp(US:RVSB)2022-02-11 19:33Financial 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].