Riverview Bancorp Reports $4.9 Million Net Income for Fiscal Year Ending March 31, 2025

Riverview Bancorp, Inc. reported a net income of $4.9 million for the fiscal year ending March 31, 2025, translating to earnings of $0.23 per diluted share, an increase from $3.8 million or $0.18 per diluted share in the previous fiscal year. The company's total assets stood at $1.51 billion, with total deposits of $1.23 billion and total shareholders' equity of $160 million. The increase in net income was primarily driven by a rise in interest income, which grew by $2.4 million to $59 million, alongside a significant increase in non-interest income, which rose by $4 million to $14.3 million. However, interest expense also increased by $4.1 million, reflecting higher costs associated with deposits.

Compared to the previous fiscal year, Riverview's loan portfolio expanded to $1.05 billion, up from $1.01 billion, with notable increases in multi-family loans and commercial real estate loans. The company has shifted its focus away from residential real estate lending, ceasing to originate one-to-four family loans, and instead has concentrated on higher-yielding commercial and construction loans, which now represent 89.5% of total loans. The allowance for credit losses (ACL) was $15.4 million, or 1.45% of total loans, slightly down from 1.50% the previous year, indicating a stable credit quality despite the growth in the loan portfolio.

Strategically, Riverview has emphasized enhancing its digital banking capabilities and expanding its branch network, which now includes 17 locations across Washington and Oregon. The company aims to deepen client relationships and increase core deposits, which accounted for 98.1% of total deposits as of March 31, 2025. Riverview's strategic plan also includes a focus on non-interest income, particularly through its Trust Company, which manages $877.9 million in assets. The company has reported a commitment to maintaining strong asset quality while pursuing profitable growth.

Looking ahead, Riverview anticipates continued challenges from rising interest rates and competitive pressures in the banking sector. The company has acknowledged that its net interest income may be adversely affected by a rising interest rate environment, as the repricing of liabilities may outpace that of assets. Riverview remains committed to managing its interest rate risk and maintaining adequate liquidity to support its operations and growth initiatives. The company’s management believes it is well-positioned to navigate these challenges while continuing to enhance shareholder value through strategic investments and operational efficiencies.