Riverview Bancorp (RVSB) Q2 2025 earnings summary

Executive summary

• Net income for Q2 FY2025 was $1.6 million ($0.07 per diluted share), down from $2.5 million ($0.12 per share) year-over-year, but up from $966,000 in Q1 FY2025, mainly due to higher deposit interest expense and increased non-interest expense.

• Six-month net income was $2.5 million ($0.12 per share), compared to $5.3 million ($0.25 per share) for the same period last year.

• Deposit balances increased $5.8 million to $1.24 billion, reflecting successful client relationship efforts and a focus on core branch deposits (98.4% of total deposits).

• Loan portfolio grew to $1.05 billion, up $36.9 million since March 31, 2024, driven by real estate construction, multi-family, and commercial business loans.

• Operating results improved sequentially following a balance sheet restructuring in March 2024.

Financial highlights

• Net interest income for Q2 was $8.9 million, up from $8.8 million in Q1 FY2025, but down $909,000 year-over-year due to higher deposit costs.

• Net interest margin was 2.46%, nearly flat sequentially, but down from 2.63% a year ago.

• Non-interest income rose to $3.8 million, up $474,000 sequentially and $434,000 year-over-year, aided by a $525,000 legal expense recovery and $199,000 from Visa share sales.

• Non-interest expense was $10.7 million, down from $11.0 million in Q1 FY2025, but up $612,000 year-over-year, mainly from higher salaries, occupancy, and a one-time lease termination fee.

• Efficiency ratio improved to 83.7% from 90.0% in Q1 FY2025, but higher than 76.1% a year ago.

Outlook and guidance

• Management expects to continue paying a quarterly dividend of $0.02 per share, balancing investment and shareholder returns.

• Management expects the recent federal funds rate decrease to benefit net interest margin in future quarters.

• Capital expenditures of $339,000 are planned for the remainder of fiscal 2025.

• The company remains focused on core deposit growth, prudent loan expansion, and maintaining strong asset quality.

• Focus remains on improving performance metrics and profitability in the second half of FY2025.