Riverview Bancorp Inc (RVSB) News & EventsRVSBRiverview Bancorp Inc

Q2 Net Interest Income Reaches $11.8M

Reports Q2 net interest income $11.8M vs. $9.8M last year, driven by higher interest-earning asset yields due to higher origination rates on new loan growth and loan repricing. Net interest margin expanded 64 basis points year-over-year to 3.40%. "Our second fiscal quarter results show we are delivering on the milestones we set out to achieve," said CEO Nicole Sherman.

Riverview Bancorp Launches $4M Stock Repurchase Program

Riverview Bancorp announced that on August 20, its Board of Directors adopted a stock repurchase program. The company may repurchase up to $4M of the company's outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once effective, the repurchase program will remain in place until the earlier of its completion or 12 months after the effective date, subject to market conditions.

Riverview Bancorp Implements Balance Sheet Optimization, Sells $149.3M Securities

Riverview Bancorp implemented a strategic balance sheet optimization. This included the reclassification of its entire held-to-maturity securities to available-for-sale securities. After the reclassification, Riverview sold $149.3M in lower-yielding book value investment securities, with an average yield of 1.62%, for an estimated pre-tax loss of $11.4M. A targeted approach was used to identify lower-yielding bonds, balancing the respective loss in relation to its book value. The goal was to minimize the loss while maximizing proceeds from the sale. Reclassifying the bonds from HTM to AFS will reduce overall equity. The reclassified bonds will be measured at fair value, with the impact recorded in accumulated other comprehensive income. No additional capital was needed to support the strategic optimization, and Riverview remains well-capitalized for regulatory purposes. Riverview expects to reinvest the proceeds into a combination of higher-yielding bonds, which will be classified as available for sale at the time of purchase, support loan originations, pay down its Federal Home Loan Bank borrowings, or hold in cash. Dependent upon the combination of redeployment of funds, Riverview expects the estimated earn-back will be less than 3.5 years. The strategic optimization is expected to add approximately 25 basis points to net interest margin and approximately 13c to earnings per share annually, once fully realized. This strategic optimization is not expected to impact Riverview's ability to continue with its existing active stock buyback.