Executive Summary

Q2 FY2026 EPS was $0.05, down sequentially from $0.06 and YoY from $0.07, on elevated non-interest expense (one-time fraud/tax items and strategic hiring) despite YoY NIM expansion to 2.76% and stable credit quality .
Net revenue was ~$13.62M, slightly above the ~$13.60M S&P Global consensus; EPS missed by $0.01 versus $0.06 consensus, with only one covering estimate this quarter (low visibility) [GetEstimates Q2 2026]*.
Balance sheet trends were constructive: loans +$2.1M QoQ to $1.07B; deposits +$26.5M QoQ to $1.24B; FHLB advances -$50.2M QoQ; tangible book per share rose to $6.51; liquidity coverage of uninsured deposits remains robust (FRB 100%, FHLB+FRB 160%) .
Credit quality is strong: NPAs/Assets 0.05%, NPLs/Loans 0.07%, zero provision, minimal net recoveries; classified assets up YoY due to one relationship, but criticized assets improved QoQ .

What Went Well and What Went Wrong

What Went Well
- NIM expansion YoY to 2.76% (from 2.46%) on higher asset yields and balance sheet optimization; CFO: focus on optimizing earning asset mix and funding costs to support NIM growth .
- Healthy franchise momentum: strongest loan pipeline to-date ($78.5M), new loan originations nearly doubled QoQ to $56.4M; CEO highlighted investments in talent/technology driving commercial & business banking activity .
- Deposits increased $26.5M QoQ; FHLB advances fell $50.2M; liquidity ample (FRB covers 100% of uninsured deposits; FHLB+FRB 160%) .
What Went Wrong
- EPS declined sequentially and YoY as non-interest expense rose to $12.2M (one-time fraud item, non-recurring business/occupancy tax assessment, and strategic hires), lifting the efficiency ratio to 89.8% .
- Deposit costs continued to increase (1.89% vs 1.72% in Q1), reflecting competitive funding; yield on securities declined (1.78% vs 2.09% QoQ), tempering asset yield momentum .
- Classified assets remained elevated vs prior year due to one lending relationship moved in the prior quarter; plan is in place to return to performing or payoff; nonperformers remain low .

Financial Results

Headline P&L and Profitability (oldest → newest)

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Diluted EPS ($)	0.07	0.06	0.05
Net Interest Income ($M)	8.94	9.84	9.78
Non-Interest Income ($M)	3.84	3.43	3.84
Non-Interest Expense ($M)	10.70	11.72	12.23
Net Interest Margin (%)	2.46	2.78	2.76
Efficiency Ratio (%)	83.71	88.34	89.76

Revenue vs Estimates (current quarter)

Metric	Consensus	Actual	Surprise
EPS ($)	0.06*	0.05	-0.01*
Revenue ($M)	13.60*	13.62*	+0.02*
Values marked with * retrieved from S&P Global (Capital IQ).

Revenue Composition (current quarter)

Component	Q2 FY2026
Net Interest Income ($M)	9.78
Non-Interest Income ($M)	3.84
Net Revenue ($M)	13.62 (computed from NII + Non-Interest Income)

Balance Sheet & Credit KPIs (oldest → newest)

KPI	Q2 FY2025	Q1 FY2026	Q2 FY2026
Total Loans ($M)	1,060.98	1,068.08	1,070.19
Total Deposits ($M)	1,237.50	1,209.89	1,236.42
FHLB Advances ($M)	102.30	102.50	52.30
Tangible BVPS ($)	6.33	6.43	6.51
NPLs/Total Loans (%)	0.04	0.01	0.07
NPAs/Assets (%)	0.03	0.01	0.05
ACL/Loans (%)	1.46	1.44	1.44
Loan Pipeline ($M)	43.5	72.0	78.5
New Originations ($M)	25.6	28.3	56.4
Trust AUM ($M)	871.6	900.1	927.0
Net Charge-offs (Recoveries) ($000)	(2)	(52)	(1)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/EPS guidance	FY/Q	None provided	None provided	—
Dividend per share	Oct 2025 payment	$0.02 (Jul 22, 2025 payment)	$0.02 (paid Oct 20, 2025)	Maintained
Share repurchase	Program size	$2.0M authorized (Apr 24, 2025)	$2.0M authorized; $0.857M executed, ~$1.1M remaining as of 9/30/25	Ongoing

No quantitative outlook for NIM, revenues, expenses, or tax provided in the Q2 FY2026 materials .

Earnings Call Themes & Trends

Note: A Q2 FY2026 earnings call transcript was not available in our sources; themes are derived from press releases across quarters.

Topic	Previous Mentions (Q4 FY2025)	Previous Mentions (Q1 FY2026)	Current Period (Q2 FY2026)	Trend
NIM trajectory	NIM improved with stabilizing funding costs; expected deposit cost stabilization after late-2024 Fed cuts	NIM up to 2.78% on higher asset yields	NIM 2.76%; YoY +30 bps; focus on asset mix, managing funding costs	Improving YoY; near-term stabilization
Loan growth & pipeline	Strong production; pipeline $41.1M	Pipeline $72.0M; investments in C&I/business banking	Record pipeline $78.5M; originations doubled QoQ to $56.4M	Strengthening
Deposit competition/costs	Deposit costs improved modestly QoQ	Cost of interest-bearing deposits 1.72%	Deposit costs rose to 1.89% amid competitive funding	Mixed; still competitive
Credit quality	NPAs low; no provision	NPAs 0.01%; no provision	NPAs 0.05%; no provision; NPLs 0.07%; classified assets elevated due to one relationship	Still strong; monitor classified
Capital & liquidity	Well-capitalized; liquidity covers ~100% FRB/163.7% FRB+FHLB	Liquidity ~100%/160.2%; TCE/TA 9.05%	Liquidity ~100%/160%; TCE/TA 9.20%	Solid, stable
Strategic initiatives	3-year plan: profitable growth, digital, data	Execute 3-year plan; digital/data; team buildouts	Continued investments in talent/technology; efficiency focus	Ongoing execution

Management Commentary

CEO Nicole Sherman: “We remain focused on... driving return on assets, unlocking revenue opportunities, and improving operational efficiency... While short-term expenses have increased due to targeted investments in talent and technology, we are already seeing meaningful results... Our loan pipeline is the strongest it has ever been...” .
CFO David Lam: “Our NIM declined slightly... reflecting a more competitive funding environment however... NIM expanded 30 basis points [YoY]... We remain focused on optimizing our earning asset mix and managing funding costs to continue to grow NIM going forward” .
Chief Lending Officer Mike Sventek: “Loan yields increased during the quarter... we continue to expand our commercial lending approach by incorporating a higher proportion of C&I relationship clients” .
Chief Credit Officer Robert Benke: “Maintaining asset quality is a key focus... [we] ensure our allowance levels remain prudent...” .

Q&A Highlights

A Q2 FY2026 earnings call transcript was not available in our document set; therefore, no Q&A themes or clarifications can be provided for this period.

Estimates Context

EPS missed consensus: Actual $0.05 vs $0.06 consensus (1 covering estimate), driven by higher non-interest expense including one-time items; NIM YoY expansion was a partial offset [GetEstimates Q2 2026]*.
Net revenue slightly beat: Actual ~$13.62M vs ~$13.60M consensus (1 estimate) [GetEstimates Q2 2026]*.
Implication: With only a single estimate, Street visibility is low; expense normalization (one-time items rolling off) and operating leverage from growth investments will shape forward estimate revisions .
Values marked with * retrieved from S&P Global (Capital IQ).

Key Takeaways for Investors

Near-term: EPS miss was expense-driven; watch for moderation of non-recurring items and hiring-related costs to improve the efficiency ratio from ~90% levels .
Balance sheet momentum: Strong loan pipeline/originations and QoQ deposit growth allowed reduction in wholesale funding; supports NIM resiliency and net interest income trajectory .
Credit remains an asset: NPAs/NPLs are low; reserve coverage is strong; one elevated classified relationship is being worked toward resolution .
Capital/liquidity: Well-capitalized with robust liquidity coverage of uninsured deposits; tangible book per share rising; repurchase activity continues under $2M authorization .
Revenue mix: Net revenue is still primarily spread-driven; incremental C&I, treasury management, and trust fees provide diversification and fee stability .
Medium-term thesis: If deposit costs stabilize and growth investments yield operating leverage, NIM/earnings trajectory and efficiency ratio should improve; execution on commercial banking strategy is a key stock catalyst .

Disclosures

No Q2 FY2026 earnings call transcript was found in our document repository; analysis is based on the Q2, Q1 FY2026 and Q4 FY2025 8-K earnings releases and contemporaneous press releases .
S&P Global (Capital IQ) consensus and actual “Revenue” for banks reflects net revenue (Net Interest Income + Non-Interest Income). Values marked with * are retrieved from S&P Global.

RIVERVIEW BANCORP INC (RVSB)·Q2 2026 Earnings Summary