Riverview Bancorp, Inc. 2025 10-K Review\n\nIn this deep dive into Riverview Bancorp, Inc. (Nasdaq: RVSB), we explore the company’s 2025 Annual Report on Form 10-K. We’ll look at the business, financial performance, risk factors, and near-term outlook. Our goal is to help investors decide whether Riverview Bancorp’s shares represent an attractive opportunity.

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Table of Contents

• 1. Business Overview
• 2. Market Area & Branch Network
• 3. Lending & Investment Activities
• 4. Asset Quality & Credit Losses
• 5. Funding & Liquidity
• 6. Results of Operations
• 7. Capital & Regulatory Compliance
• 8. Risks & Outlook
• 9. Investment Score & Conclusion

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1. Business Overview

Riverview Bancorp, Inc., headquartered in Vancouver, Washington, is the bank holding company for Riverview Bank. At March 31, 2025, it reported:

Warren.AI 💰 5.2 / 10

• Total assets: $1.513 billion
• Total deposits: $1.232 billion
• Shareholders’ equity: $160 million

Riverview focuses on community banking in Southwest Washington and the Portland (Oregon) metro area. It has two non-bank subsidiaries:

• Riverview Trust Company: Wealth and fiduciary services; assets under management $878 million
• Riverview Services, Inc.: Trustee for deeds of trust on mortgages

The bank emphasizes five strategic priorities:

1. Employer of choice
2. Profitable growth
3. Digital experience
4. Data empowerment
5. Best-in-class client experience

Core lending products include: commercial business, commercial real estate, multi-family, land, construction and one-to-four family mortgages. Deposit gathering includes retail and business checking, savings, money markets and certificates of deposit.

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2. Market Area & Branch Network

Riverview operates 17 branches in SW Washington (Clark, Klickitat, Skamania counties) and NW Oregon (Multnomah, Washington & Marion counties), along with three lending centers and two Trust Company offices. The service area benefits from:

• Proximity to Portland metro payrolls
• Major employers (TSMC Washington, Sharp, HP etc.)
• Tourism in the Columbia River Gorge

The branch footprint is the foundation for local deposit gathering and loan originations, targeting businesses, professionals and residential clients.

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3. Lending & Investment Activities

Loan portfolio mix (3/31/25):

Category	Balance ($M)	% of total loans
Commercial & construction	950.4	89.5%
Residential 1–4 family	97.7	9.2%
Other consumer installment	14.4	1.4%
Total loans	1,062.5	100.0%

Key trends in FY 2025:

• Commercial real estate up ~$8.7 M (56% of loans)
• Commercial business up ~$3.5 M (22% of loans)
• Multi-family grew to 8.6% of portfolio
• 1–4 family origination ceased in 2021; balances remain flat

Investment securities ($322.5 M):

• 37% Available for sale
• 63% Held to maturity
• Mix of agency, municipal, MBS, REMIC & CRE-MBS

Net yield on the combined portfolio was ~1.96% (FY 2025).

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4. Asset Quality & Credit Losses

Nonperforming loans (3/31/25): $155 K (0.01% of assets)

• 4 loans cumulatively totaling $155 K, all in SW Washington
• Coverage ratio: 9,900% (Allowance $15.4 M)

Loan loss allowance (ACL): $15.4 M (1.45% of total loans)

• Provision for credit losses $0.10 M in FY 2025
• Net charge-offs $0.09 M (FY 2025)
• CECL methodology adopted 4/1/23

Risk management:

• Underwriting policy caps 80% LTV on commercial RE
• Monitoring of criticized/classified credits
• Annual and periodic allowance reviews

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5. Funding & Liquidity

Deposits stable at $1.23 B:

• Core deposits: 98% of total
• Brokered and wholesale deposits: none
• CDARS/ICS: $36 M (2.9% of deposits)

Borrowings:

• FHLB advances $76.4 M vs. $88.3 M (3/31/24)
• FRB borrowings $0
• Capacity: $812.6 M or 53.7% of assets

Structural liquidity:

• Cash & AFS securities $149 M (10% of assets)
• Modest short-term loan maturities ($52.9 M) vs. CD maturities ($222 M)

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6. Results of Operations

($M)	2025	2024	2023
Net interest income	36.3	38.1	51.6
Provision for losses	0.1	—	0.8
Non-interest income	14.3	10.2	12.2
Non-interest expense	44.3	43.7	39.4
Pre-tax income	6.2	4.6	23.7
Net income	4.9	3.8	18.1
EPS (diluted)	$0.23	$0.18	$0.83

Drivers of change:

• Net interest income ↓ 4.6% due to higher funding costs
• Investment securities losses ($2.7 M) in 2024 only
• Non-interest income up $4 M
• Salaries & benefits up $1.9 M; occupancy ↑ $0.7 M

Key metrics:

• NIM: 2.54% vs. 2.56% (2024)
• ROA: 0.32% vs. 0.24%
• ROE: 3.09% vs. 2.43%
• Efficiency ratio: 87.5% vs. 90.5%

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7. Capital & Regulatory Compliance

Capital ratios (3/31/25):

• Total risk-based: 16.48%
• Tier 1 risk-based: 15.23%
• CET1: 15.23%
• Leverage: 11.10%
• Classified well capitalized by FDIC metrics

Dividends: $0.08/share in 2025; paid quarterly
Regulation: Supervised by WDFI, FDIC & Federal Reserve
CRA rating: Satisfactory

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8. Risks & Outlook

Key risk factors:

• Concentration in commercial RE lending
• Interest rate sensitivity: NII forecast to decline in rising rate scenarios
• Regional economic downturns; limited geographic diversification
• Cybersecurity & third-party vendor risk
• Regulatory changes targeting DEI/ESG programs

Opportunities:

• Continued loan portfolio shift toward commercial/commercial RE
• Pursue modest branch additions and selective acquisitions
• Enhance digital & cash management offerings for SMEs

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9. Investment Score & Conclusion

Net income FY 2025: $4.9 million
Diluted EPS FY 2025: $0.23
Return on average assets (ROA): 0.32%
Return on average equity (ROE): 3.09%

Investment Score: 5.2 /10

Rationale:

• Strength: Low credit losses and strong capital ratios
• Challenge: Modest profitability in rising rate environment, concentration in CRE
• Neutral: Stable deposit base; moderate loan growth

Riverview Bancorp combines credit discipline and community focus with a solid capital foundation. Earnings have moderated as funding costs rose faster than asset yields. The Companys future performance hinges on extending profitable commercial loans, expanding core deposit relationships, and managing interest rate risk. Investors seeking income and value upside in a small regional bank may find RVSB a mid-range opportunity, reflecting its strong balance sheet but modest earnings power in a higher-rate, competitive market.

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This analysis is for educational purposes and should not be construed as investment advice.