Executive Summary

EPS of $0.06 declined sequentially from $0.07 on higher operating expense and normalization of non-interest income, while NIM expanded 14 bps to 2.60% on higher asset yields and lower borrowing costs, aided by a $318k loan prepayment/fee item .
Net interest income rose to $9.4M (+5% q/q), but the efficiency ratio worsened to 87.6% (from 83.7%) as professional fees increased and the prior quarter benefited from a fraud loss recovery; non-interest income fell q/q due to a $525k legal recovery in Q2 that did not recur .
Total loans fell $15.9M q/q on two large payoffs despite better production; deposits declined $18.5M with mix shifting toward higher-yielding money market/CDs; asset quality remained strong with NPAs at 0.03% and ACL/loans of 1.47% .
Capital and liquidity are solid (Total RBC 16.47%; $450.1M in available liquidity); management executed the new $2.0M buyback (repurchased 200,073 shares at $5.43 avg) and maintained the $0.02 dividend, potential supports for the stock as NIM stabilizes .

What Went Well and What Went Wrong

What Went Well
- NIM expansion and NII growth: NIM rose to 2.60% (+14 bps q/q), with NII up to $9.4M, driven by higher loan yields (4.97%) and lower borrowing expense following Fed cuts; CFO: “rate cuts reduced the interest expense on borrowings” and expect deposit costs “to further stabilize” .
- Asset quality remained strong: NPAs at $469k (0.03% of assets); ACL/loans 1.47%; charge-offs modest ($114k) and criticized assets stable q/q; CCO: “Asset quality metrics continue to remain very stable” .
- Shareholder returns and capital: Executed buybacks (200,073 shares at $5.43) and maintained the quarterly dividend at $0.02; capital well above “well-capitalized” thresholds (Total RBC 16.47%; Tier 1 leverage 10.86%) .
What Went Wrong
- EPS slipped to $0.06 (from $0.07) as efficiency ratio worsened to 87.6% on higher professional fees and absence of prior-quarter fraud loss recovery; non-interest income fell q/q without the $525k legal recovery that boosted Q2 .
- Balance sheet contraction: Loans decreased $15.9M q/q on two large payoffs; deposits fell $18.5M with mix continuing to migrate toward higher-cost money market/CDs; deposit costs rose to 1.32% (from 1.26%) .
- Operating leverage still tight: Efficiency ratio elevated (87.6% vs 83.7% prior quarter), reflecting expense pressure (professional fees) and only gradual revenue growth; pre-tax, pre-provision income was $1.58M vs $2.08M in Q2 .

Financial Results

Metric	Q3 FY2024 (Dec 31, 2023)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
Diluted EPS	$0.07	$0.07	$0.06
Net Interest Income ($M)	$9.324	$8.942	$9.388
Non-interest Income ($M)	$3.056	$3.841	$3.341
Net Interest Margin (%)	2.49%	2.46%	2.60%
Efficiency Ratio (%)	85.23%	83.71%	87.63%
ROAA (%)	0.37%	0.40%	0.32%
Loan Yield (%)	4.56%	4.80%	4.97%
Cost of Interest-Bearing Deposits (%)	0.98%	1.76%	1.81%

Balance Sheet	Q3 FY2024 (Dec 31, 2023)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
Total Loans (gross, $M)	$1,018.2	$1,061.0	$1,045.1
Total Deposits ($M)	$1,218.9	$1,237.5	$1,219.0
Trust AUM ($M)	$942.4	$871.6	$872.6

Asset Quality and Capital	Q3 FY2024 (Dec 31, 2023)	Q2 FY2025 (Sep 30, 2024)	Q3 FY2025 (Dec 31, 2024)
NPAs / Assets (%)	0.01%	0.03%	0.03%
NPLs / Loans (%)	0.02%	0.04%	0.04%
ACL / Loans (%)	1.51%	1.46%	1.47%
Net Charge-offs ($k)	(15)	(2)	114
Total Risk-Based Capital (%)	16.67%	16.14%	16.47%
Tier 1 Leverage (%)	10.53%	10.72%	10.86%

Non-Interest Income Mix ($k)	Q3 FY2024	Q2 FY2025	Q3 FY2025
Fees & Service Charges	1,533	1,524	1,492
Asset Management Fees	1,266	1,433	1,443
BOLI	211	279	225
Other, net	46	605	181

Note: Wall Street consensus estimates (EPS/Revenue) were not available via S&P Global at the time of retrieval, so estimate comparisons are omitted.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend	Ongoing	$0.02 per share	$0.02 per share	Maintained
Share Repurchase	12 months from 9/25/24	Authorized up to $2.0M	Executed 200,073 shares in Q3 at $5.43 avg	Ongoing program with execution update
NIM Outlook (qualitative)	Forward	N/A	Expect stabilization/benefit from rate cuts; deposit costs to stabilize	Directional improvement (management commentary)

No explicit numeric guidance provided for revenue, margins, OpEx, or tax rate in Q3 materials .

Earnings Call Themes & Trends

No Q3 FY2025 earnings call transcript was available; themes below synthesize management commentary from press releases across quarters.

Topic	Previous Mentions (Q1 FY25 and Q2 FY25)	Current Period (Q3 FY25)	Trend
Net Interest Margin and Funding	Q1: NIM +15 bps to 2.47% on loan growth/higher yields; funding costs rising . Q2: NIM stable 2.46%; early benefit expected from late-quarter Fed cut	NIM +14 bps to 2.60% as asset yields improved and borrowing costs fell; deposit costs modestly higher; CFO expects further stabilization	Improving
Deposit Mix/Costs	Q1: Non-interest/interest checking 50.9%; deposit costs 1.14% . Q2: Checking mix 49.2%; deposit costs 1.26%	Checking mix 46.8%; deposit costs 1.32%; continued customer preference for yield	Mixed (higher costs, mix shifts)
Loan Growth/Pipeline	Q1: Loans +$21.1M; pipeline $32.3M; originations $23.2M . Q2: Loans +$15.9M; pipeline $43.5M; originations $25.6M	Loans -$15.9M on two payoffs; pipeline $49.1M at quarter-end and $64.2M post-quarter; originations $31.1M	Near-term dip; forward pipeline stronger
Asset Quality/CRE Office	Low NPAs; office portfolio ~ $112–113M, LTV ~54%, DSCR ~2.0x in Q1/Q2	NPAs 0.03%; office portfolio $113.4M; LTV 53.8%, DSCR 1.99x; criticized assets stable q/q	Stable
Capital & Liquidity	Q1: TRBC 16.18%; liquidity $456.3M; uninsured deposits 23.1%	TRBC 16.47%; liquidity $450.1M; uninsured deposits 23.8% (coverage near/full via FRB/FHLB lines)	Stable
Non-Interest Income/Trust	Q1: Asset mgmt fees $1.6M; AUM $897.9M . Q2: Fees $1.4M; AUM $871.6M; Q2 “Other” boosted by $525k legal recovery	Asset mgmt fees $1.4M; AUM $872.6M; “Other” normalized (no legal recovery)	Stable (normalized)
Shareholder Returns	Q1/Q2: Dividend $0.02; buyback authorization announced 9/25/24	Dividend maintained; 200,073 shares repurchased at $5.43 avg in Q3	Positive execution

Management Commentary

CEO Nicole Sherman: “Riverview’s operating performance during the third fiscal quarter reflected steady improvements, with net interest margin expansion as a result of stabilizing funding costs and higher loan yields” .
CFO David Lam: “With the recent Fed rate reductions, we anticipate deposit costs to further stabilize in future quarters. Additionally, the rate cuts reduced the interest expense on borrowings, which also benefitted NIM during the current quarter” .
Chief Lending Officer Mike Sventek: “Loan yields improved during the current quarter as a result of higher rates on new loan originations and higher rates on existing loans that have come up for repricing…” .
Chief Credit Officer Robert Benke: “Asset quality metrics continue to remain very stable…” with NPAs at 0.03% of assets .

Q&A Highlights

No Q3 FY2025 earnings call transcript was available; therefore, no Q&A details to report for this quarter.

Estimates Context

Wall Street consensus (S&P Global) for Q3 FY2025 EPS and revenue was not retrievable at the time of analysis; as a result, beat/miss versus consensus is not included and estimates-related adjustments are not assessed.

Key Takeaways for Investors

NIM inflected positively for a second straight quarter; with rate cuts easing borrowing costs and loan yields repricing higher, further stabilization is plausible near term .
Revenue line supported by NII growth; watch for sustainability absent one-time loan prepayment/fees ($318k this quarter) and without the Q2 legal recovery tailwind in “Other” income .
Operating leverage remains the swing factor: efficiency ratio rose to 87.6% on higher professional fees—cost discipline and revenue momentum will be key to EPS re-acceleration .
Balance sheet dynamics bear monitoring: loan balances fell on two large payoffs, but a larger pipeline ($64.2M post-quarter) and higher-rate originations could restore growth while aiding yields .
Credit remains a differentiator: NPAs at 0.03%, ACL/loans 1.47%, and limited charge-offs provide downside protection in a still-uncertain CRE/macro tape .
Shareholder return framework is active (buyback executed; dividend maintained) atop robust capital/liquidity—potential downside support amid small-cap bank volatility .
Near-term trading: positive bias on continued NIM improvement and buyback, tempered by efficiency ratio/expense trajectory and deposit cost mix shift; medium term, watch for deposit beta roll-down, expense normalization, and pipeline conversion to re-ignite EPS growth .

RIVERVIEW BANCORP INC (RVSB)·Q3 2025 Earnings Summary