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RIVERVIEW BANCORP INC (RVSB)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 printed steady, modest profitability: net income $1.15M ($0.05 diluted EPS) vs $1.23M ($0.06) in Q3 and a $2.97M loss in Q4 FY2024 that included a securities loss and litigation charge; NIM expanded to 2.65% on easing funding costs and lower borrowing expense .
  • Total “revenue” (net interest income + non-interest income) improved sequentially to ~$12.90M on stronger non-interest income (includes $0.261M BOLI death benefit) while net interest income dipped modestly on prior-quarter prepayment fees not repeating .
  • Credit quality remained very strong (NPAs 0.01% of assets; no provision), but classified assets rose to $2.9M on one ~$2.0M loan and a $0.725M relationship, which management expects to resolve without loss—a watch item into FY2026 .
  • Capital/liquidity solid: TCE/ATA 8.93%; available liquidity $471.3M; uninsured deposit ratio 23.4% with FHLB+FRB capacity covering 163.7% of uninsured deposits; dividend held at $0.02 and $2.0M buyback completed during Q4 .
  • Results beat thin S&P consensus: EPS $0.05 vs $0.03 est; “revenue” ~$12.64M vs $12.40M est; estimate coverage just one analyst, so model updates likely modest but skewed positive on NIM trajectory and loan production momentum (S&P Global) *.

What Went Well and What Went Wrong

What Went Well

  • NIM expanded to 2.65% (+5 bps q/q; +33 bps y/y) as deposit costs eased and borrowing costs fell after late-2024 Fed cuts; CFO: “decrease in funding costs more than offset the modest decrease in asset yields” .
  • Non-interest income rebounded to $3.7M (vs $3.3M in Q3; vs $0.5M in Q4 FY2024 due to last year’s strategic securities restructure), aided by a $0.261M BOLI death benefit and improving asset management fees .
  • Balance sheet/capital strength sustained: TCE/ATA 8.93%; total risk-based capital 16.27%; liquidity $471.3M; uninsured deposits 23.4% with 163.7% coverage under FHLB+FRB lines .

What Went Wrong

  • Sequential EPS/NI down (EPS $0.05, NI $1.15M) as prior-quarter $318K loan prepayment/fee income didn’t repeat and operating expenses rose on filled positions and consulting fees; efficiency ratio ticked up to 88.7% .
  • Classified assets increased to $2.9M (from $0.226M in Q3) due largely to one $2.0M loan and a $0.725M relationship; management is working to cure or payoff, but it’s a near-term watch item .
  • Investment securities income remains pressured post FY2024 restructuring; average securities balances declined and yields are subdued (1.84% in Q4), constraining top-line contribution from the securities book .

Financial Results

MetricQ2 2025Q3 2025Q4 2025
Total Revenue (NII + Non-interest) ($USD)$12.78M $12.73M $12.90M
Net Interest Income ($USD)$8.94M $9.39M $9.19M
Non-Interest Income ($USD)$3.84M $3.34M $3.71M
Diluted EPS ($)$0.07 $0.06 $0.05
Net Income ($USD)$1.56M $1.23M $1.15M
Net Interest Margin (%)2.46% 2.60% 2.65%
Efficiency Ratio (%)83.71% 87.63% 88.67%

Estimates vs Actuals (S&P Global; 1 estimate each period)

MetricQ2 2025Q3 2025Q4 2025
EPS – Actual vs Consensus$0.07 vs $0.04* $0.06 vs $0.04* $0.05 vs $0.03*
Revenue – Actual vs Consensus ($USD)$12.18M vs $12.20M*$12.73M vs $12.60M*$12.64M vs $12.40M*

Values retrieved from S&P Global.*

Segment/KPI Mix (selected)

  • Non-interest income components Q4: Fees & service charges $1.446M; Asset management fees $1.472M; BOLI $0.226M; BOLI death benefit $0.261M; Other $0.302M .
  • Net interest spread/mix Q4: Yield on loans 4.91%; cost of interest-bearing deposits 1.76%; cost of borrowings 5.21%; spread 2.04% .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareNext payment (announced 3/27/25)$0.02 prior quarter$0.02 payable 4/25/25Maintained
Stock Repurchase ProgramThrough 12 months from 9/25/24 authorizationAuthorized up to $2.0MCompleted $2.0M; 358,631 shares at $5.53 avg (completed by 2/2/25)Completed
NIM/Deposit Costs (qualitative)ForwardFed cuts expected to stabilize deposit costs (Q3)Deposit costs stabilizing; lower borrowings costs benefitted NIM (Q4)Positive tone maintained

No explicit quantitative revenue/expense/tax rate guidance was provided; management commentary implies continued focus on NIM stabilization, loan production, and disciplined expense management .

Earnings Call Themes & Trends

Note: No Q4 FY2025 earnings call transcript was found; themes below are drawn from company Q2–Q4 press releases/8-Ks.

TopicPrevious Mentions (Q2 FY2025)Previous Mentions (Q3 FY2025)Current Period (Q4 FY2025)Trend
Net interest margin/funding costsNIM stabilizing despite higher deposit costs NIM +14 bps q/q; Fed cuts to stabilize deposit costs NIM +5 bps q/q; deposit costs improved; lower borrowings cost Improving
Loan production/growthLoans +$15.9M; pipeline $43.5M Production improved; loan payoffs reduced balances; pipeline $49.1M Strong quarter: originations $49.4M; loans +$17.4M; pipeline $41.1M Improving production; rebuild balances
Credit qualityNPA 0.03% assets; ACL 1.46% loans NPA 0.03%; ACL 1.47% NPA 0.01%; ACL 1.45%; classified assets up on one loan Headline metrics strong; watch classified
Securities/investment bookLower balances; yield ~2.05%; no new purchases Lower balances; duration ~5.3 yrs; no purchases Yield 1.84%; duration ~5.1 yrs; no purchases Ongoing drag; runoff/cashflows
Capital/liquidityTRBC 16.14%; liquidity $467M; uninsured 24.1% TRBC 16.47%; liquidity $450M; uninsured 23.8% TRBC 16.27%; liquidity $471M; uninsured 23.4% Stable/strong
Shareholder returnsDividend $0.02 Dividend $0.02; buyback in progress Dividend $0.02; $2.0M buyback completed Maintained/Completed buyback

Management Commentary

  • “We closed out our fiscal fourth quarter and fiscal year end on solid footing… net interest margin expansion as a result of stabilizing funding costs and higher loan yields compared to a year ago. Loan growth was strong… loan production outperforming the previous four quarters.” — Nicole Sherman, President & CEO .
  • “Our NIM improved during the quarter… as the decrease in funding costs more than offset the modest decrease in asset yields… [Rate cuts] reduced the interest expense on borrowings, which also benefitted NIM.” — David Lam, CFO .
  • “Loan yields declined [vs Q3] due to prior-quarter prepayment fee impact… Compared to a year ago, loan yields have increased… We continue to explore opportunities to enhance our loan yield by expanding… variable rate loan structures.” — Mike Sventek, EVP & Chief Lending Officer .

Q&A Highlights

No Q4 FY2025 earnings call transcript was published/found; the company’s press release provides clarifications:

  • NIM drivers: lower deposit and borrowing costs; prior-quarter loan prepayment/fee tailwind did not recur .
  • Classified assets: increase due to one $2.0M loan (plan to return to performing or payoff) and a $0.725M relationship; no loss anticipated on a separate criticized relationship .
  • Operating expenses: higher on filled positions and consulting; efficiency ratio 88.7% .

Estimates Context

  • EPS beat: Q4 $0.05 vs $0.03*; Q3 $0.06 vs $0.04*; Q2 $0.07 vs $0.04* (1 estimate each). Beats driven by NIM expansion and credit stability, with Q4 aided by non-interest income rebound (BOLI benefit) even as prior-quarter prepayment fees rolled off (S&P Global) *.
  • Revenue beat/miss: Q4 ~$12.64M vs $12.40M* beat; Q3 $12.73M vs $12.60M* beat; Q2 $12.18M vs $12.20M* slight miss (S&P Global)*.
  • Implications: With NIM tailwinds from deposit cost stabilization and lower borrowing costs, and stronger loan production, Street models may modestly raise NII and EPS run-rate, but thin coverage (one estimate) limits aggregate consensus shifts *.

Values retrieved from S&P Global.*

KPIs

KPIQ2 2025Q3 2025Q4 2025
Loans Outstanding ($B)$1.06B $1.05B $1.06B
Deposits ($B)$1.24B $1.22B $1.23B
Loan Pipeline ($M)$43.5M $49.1M $41.1M
New Loan Originations ($M)$25.6M $31.1M $49.4M
Tangible BVPS ($)$6.33 $6.20 $6.33
NPAs / Assets (%)0.03% 0.03% 0.01%
ACL / Loans (%)1.46% 1.47% 1.45%
Uninsured Deposit Ratio (%)24.1% 23.8% 23.4%
Available Liquidity ($M)$467.0M $450.1M $471.3M
FHLB Advances ($M)$102.3M $84.2M $76.4M
Riverview Trust AUM ($M)$871.6M $872.6M $877.9M
Non/Interest Checking % of Deposits49.2% 46.8% 48.7%

Key Takeaways for Investors

  • NIM trend is improving with easing deposit/borrowing costs; sequential +5 bps to 2.65% provides incremental EPS support entering FY2026 .
  • Loan production momentum re-accelerated (Q4 originations $49.4M), flipping Q3 payoff headwinds; pipeline remains healthy at $41.1M .
  • Credit remains a core strength (NPAs 0.01%; no provision), though Q4’s classified-asset uptick is a watch item; management outlines plans to resolve key exposures .
  • Non-interest income normalization (BOLI, asset management fees) lifts total revenue resilience alongside NII .
  • Capital/liquidity positions are robust (TCE/ATA 8.93%; liquidity $471M; uninsured 23.4% with 163.7% coverage), supporting continued dividend and opportunistic capital actions; $2.0M buyback completed .
  • Thin sell-side coverage magnifies single-quarter beats; Q4 EPS and revenue beat S&P consensus, but with one estimate, Street revisions may be incremental (S&P Global)*.
  • Trading setup: Positive bias on improving NIM and production, balanced by near-term monitoring of classified assets; dividend yield and completed buyback add support .