Riverview Bancorp Reports Net Income of $1.2 Million in Third Fiscal Quarter 2025; Results Highlighted by Net Interest Margin Expansion

Core Viewpoint - Riverview Bancorp reported a decline in earnings for the third fiscal quarter of 2025, with net income of $1.2 million, down from $1.6 million in the previous quarter and $1.5 million a year ago, reflecting challenges in loan growth despite improvements in net interest margin and loan production [1][2][3]. Financial Performance - Earnings per diluted share for the third fiscal quarter were $0.06, compared to $0.07 in the previous quarter and the same quarter last year [1]. - For the first nine months of fiscal 2025, net income was $3.8 million, or $0.18 per diluted share, down from $6.8 million, or $0.32 per diluted share, in the same period of fiscal 2024 [2]. Income Statement Review - Net interest income increased to $9.4 million in the current quarter from $8.9 million in the preceding quarter and $9.3 million a year ago, driven by higher yields on interest-earning assets [5][8]. - The net interest margin (NIM) improved to 2.60%, a 14 basis point increase from the previous quarter and an 11 basis point increase from the same quarter last year [6][8]. - Non-interest income was $3.3 million during the third fiscal quarter, down from $3.8 million in the preceding quarter but up from $3.1 million a year ago [11]. Balance Sheet Review - Total loans decreased by $15.9 million to $1.05 billion at December 31, 2024, primarily due to two large loan payoffs, although new loan originations increased to $31.1 million [15]. - Total deposits decreased by $18.5 million to $1.22 billion, remaining unchanged compared to a year ago [18]. - Shareholders' equity was $158.3 million at December 31, 2024, down from $160.8 million three months earlier [20]. Asset Quality - Non-performing assets were $469,000, or 0.03% of total assets, with non-performing loans totaling $168,000, or 0.02% of total loans [21][22]. - The allowance for credit losses was $15.4 million, representing 1.47% of total loans [24]. Capital and Liquidity - Riverview maintained a total risk-based capital ratio of 16.47% and a Tier 1 leverage ratio of 10.86% at December 31, 2024, indicating strong capital levels [25]. - The company had approximately $450.1 million in available liquidity, including $164.4 million of borrowing capacity from the FHLB [26][27]. Stock Repurchase Program - The Board of Directors adopted a stock repurchase program allowing the company to repurchase up to $2.0 million of its outstanding shares, with 200,073 shares repurchased at an average price of $5.43 during the third quarter [28].