RIVERVIEW BANCORP INC
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
RVSB$6.120.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000939057-25-000203
Item 2. : Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001041368-25-000004
Item 2. : Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 86 current paragraphs.
32 unchanged; 36 reworded; 16 added; 13 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Loans receivable, net, totaled $1.05 billion at both September 30, 2025 and March 31, 2025. While the overall balance remained unchanged, the composition of the portfolio shifted. Commercial real estate loans increased by $10.8 million,
Current report
and consumer loans increased by $8.8 million, consisting of a $1.3 million increase in real estate one-to-four family loans and a $7.5 million increase in other installment loans. The increases in commercial real estate loans and consumer loans were primarily driven by loan purchases, as discussed below. These increases were partially offset by decreases of $5.3 million in commercial business, $3.4 million in real estate construction and $2.5 million in multi-family loans, reflecting scheduled repayments and reduced origination activity in these categories.
Current report
Accrued expenses and other liabilities increased $12.5 million to $27.2 million at September 30, 2025 compared to $14.8 million at March 31, 2025. The increase was primarily due to an outstanding balance in Trust sweep funds of $12.4 million at September 30, 2025, which was subsequently disbursed the following business day.
Current report
FHLB advances decreased $24.1 million to $52.3 million at September 30, 2025 compared to $76.4 million at March 31, 2025. FHLB advances at September 30, 2025 were comprised entirely of overnight advances. FHLB advances at March 31, 2025 were comprised of overnight advances and short-term borrowings of $51.4 million and $25.0 million, respectively. The decrease in advances primarily reflected scheduled repayments and reduced reliance on FHLB funding, as growth in deposits and loan repayments provided sufficient liquidity.
Current report
outflows are scheduled maturities of loan and investment securities of $42.7 million and $11.0 million, respectively, within one year of September 30, 2025.
Current report
Net Income. Net income was $1.1 million, or $0.05 per diluted share, for the three months ended September 30, 2025, compared to $1.6 million, or $0.07 per diluted share, for the same period in the prior year. Net income for the six months ended September 30, 2025 and 2024 was $2.3 million, or $0.11 per diluted share, and $2.5 million, or $0.12 per diluted share, respectively. The decrease in net income for both the three- and six-month periods ended September 30, 2025, compared to the same periods in the prior year, was due to increases in non-interest expense of $1.5 million and $2.3 million, respectively. Net income was also impacted by an increase in interest on deposits of $506,000 and $832,000 for the three and six months ended September 30, 2025, respectively, partially offset by a decrease in interest expense on borrowings of $915,000 and $1.3 million for the same periods.
Current report
Net interest income for the three and six months ended September 30, 2025, was $9.8 million and $19.6 million, respectively, representing an increase of $839,000 and $1.9 million compared to the same periods in 2024. These increases were primarily due to increased interest and fees on loans receivable and a decrease in interest expense on borrowings. Net interest margin for the three and six months ended September 30, 2025 was 2.76% and 2.77%, respectively, compared to 2.46% for both periods in 2024. The increase in net interest margin primarily reflects higher yields on loans, partially offset by growth in average interest-earning assets.
Current report
Interest and Dividend Income. Interest and dividend income for the three and six months ended September 30, 2025 was $15.4 million and $30.7 million, compared to $14.9 million and $29.3 million for the same periods in the prior year, respectively. The increases were due to increases in interest income on loans receivable of $984,000 and $2.3 million, respectively, when compared to the same periods in 2024, due to both increases in the average balance of net loans and improved yields.
Current report
The average yield on loans increased to 5.11% and 5.08% for the three and six months ended September 30, 2025, compared to 4.80% and 4.75% for the same periods in 2024. Mortgage loan yields rose to 5.13% and 5.09% for the three and six months ended September 30, 2025, up from 4.78% and 4.75% while non-mortgage loan yields increased to 5.06% and 5.04%, compared to 4.85% and 4.75% for the same periods last year. The average balance of net loans increased to $1.06 billion for both the three- and six -months periods, compared to $1.05 billion and $1.04 billion in the prior year. The average balance of mortgage loans increased $3.8 million and $11.0 million to $787.6 million and $789.4 million, respectively, for the three and six months ended September 30, 2025, while the average balance of non-mortgage loans increased $8.3 million and $12.6 million to $273.0 million and $272.4 million, respectively, compared to the same period last year.
Current report
Interest earned on investment securities decreased $480,000 and $785,000 for the three and six months ended September 30, 2025, compared to the same periods in the prior year, reflecting decreases in both the average balance of and yield earned on investment securities. The average balance of investment securities decreased $49.4 million and $51.7 million to $329.1 million and $333.1 million for the three and six months ended September 30, 2025, compared to $378.4 million and $384.8 million for the same periods in the prior year, respectively. The decrease in the average balance of investment securities was attributable to normal paydown activities. The average yield on investment securities was 1.78% and 1.94% for the three and six months ended September 30, 2025, compared to 2.05% and 2.08 % for the same periods in the prior year, consistent with the lower reinvestment rates and reduced balances.
Current report
Interest Expense. Interest expense totaled $5.6 million and $11.1 million for the three and six months ended September 30, 2025, compared to $6.0 million and $11.6 million for the three and six months ended September 30, 2024, respectively. The decreases were primarily due to decreases in interest expense on FHLB advances, due to both decreases in the average balance of FHLB advances and lower rates, partially offset by increases in interest expense on deposits.
Current report
Interest expense on deposits increased $505,000 and $832,000 for the three and six months ended September 30, 2025, respectively, compared to the same periods the prior year. The increases were primarily due to higher rates and average balances in interest checking and money market accounts, as well as an increase in the balance of higher-cost certificates of deposit, partially offset by lower rates paid on certificates of deposit.
Current report
The average rate on money market accounts increased 17 and 27 basis points for the three and six months ended September 30, 2025, respectively, while the average balance increased $7.5 million and $13.8 million compared to the same periods in the prior year. The average rate on interest checking accounts increased 24 and 7 basis points, with the average balance increasing $26.9 million and $11.6 million for the same periods. Certificates of deposit experienced a decrease in average rates of 34 and 28 basis points, while the average balances increased $30.5 million and $28.0 million for the three and six months ended September 30, 2025, respectively, compared to the same periods the prior year.
Current report
Net recoveries totaled $1,000 for the three months ended September 30, 2025 and $53,000 for the six months ended September 30, 2025, compared to net recoveries of $2,000 for both the three and six month ended September 30, 2024. Net charge-offs/recoveries were insignificant for three months ended September 30, 2025. Net recoveries were $106,000 for the six months ended September 30, 2025. Net charge-offs/recoveries were insignificant for both the three and six months ended September 30, 2024.
Current report
Non-Interest Income. Non-interest income was $3.8 million for both the three months ended September 30, 2025 and 2024, as changes within various income categories offset one another. For the six months ended September 30, 2025, non-interest income increased $58,000 to $7.3 million, compared to $7.2 million for the same period in the prior year. Fees and service charges increase $113,000 and $145,000 for the three and six months ended September 30, 2025, compared to the same periods the prior year, primarily attributable to fee income in connection with an employee retention credit partnership and ATM interchange fee income. Asset management fees increased $94,000 and $88,000, respectively, reflecting growth in assets under management. These increases were offset by a decrease in other non-interest income of $219,000 and $197,000 during the three and six months ended September 30, 2025, compared to the same periods the prior year, as the prior year included a $500,000 legal expense recovery related to a settled litigation matter, partially offset in the current year by a $294,000 employee retention credit.
Current report
Non-Interest Expense. Non-interest expense increased $1.5 million and $2.3 million to $12.2 million and $23.9 million for the three and six months ended September 30, 2025, compared to $10.7 million and $21.7 million for the same periods in the prior year. The increases were primarily due to higher salaries and employee benefits, which increased $827,000 and $1.7 million, reflecting increases in compensation and bonus expenses. Other non-interest expense increased $634,000 and $729,000 for the three and six months ended September 30, 2025, compared to the same periods in the prior year mainly due to a one-time business and occupation tax accrual in September 2025 of $242,000 and fraud-related losses of $113,000. These increases were partially offset by decreases in occupancy and depreciation expense of $62,000 and $89,000, and a decrease in marketing expenses of $34,000 and $107,000 for the three and six months ended September 30, 2025, respectively, compared to the same periods the prior year.
Removed paragraphs (13)
Previous report
Loans receivable, net, totaled $1.05 billion at both June 30, 2025 and March 31, 2025. During the quarter ended June 30, 2025, net loans increased $5.6 million, due primarily to an increase in commercial real estate loans of $7.4 million, which
Previous report
was partially offset by a decrease in real estate construction loans of $9.0 million, reflecting the completion and payoff of previously originated projects.
Previous report
Goodwill was $27.1 million at both June 30, 2025, and March 31, 2025. For additional information on our goodwill impairment testing, see “Goodwill Valuation” included in this Item 7 and Note 7 of the Notes to the Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
Previous report
Deposits decreased $22.4 million to $1.21 billion at June 30, 2025, compared to $1.23 billion at March 31, 2025, primarily due to increased competition for deposits, pricing pressure, and an overall decrease in market liquidity. Non-interest bearing accounts decreased $8.7 million, regular savings accounts decreased $8.5 million, interest bearing checking accounts decreased $7.4 million, and money market accounts decreased $2.5 million. These declines were partially offset by a $4.7 million increase in certificates of deposit.
Previous report
FHLB advances increased $26.1 million to $102.5 million at June 30, 2025, compared to $76.4 million at March 31, 2025. FHLB advances were comprised of $77.5 million in overnight borrowings and $25.0 million in short-term borrowings at June 30, 2025, compared to $51.4 million in overnight borrowings and $25.0 million in short-term borrowings at March 31, 2025. These advances were used to fund new loan originations and partially offset the decrease in deposit balances.
Previous report
Net Income. Net income was $1.2 million, or $0.06 per diluted share, for the three months ended June 30, 2025, up $259,000 or 26.8% compared to $966,000, or $0.05 per diluted share for the same period in the prior year. The Company’s net income increased primarily due to an increase in interest and dividend income of $976,000 from increased interest and fees on loans receivable and an increase in non-interest income of $59,000, partially offset by a $751,000 increase in non-interest expense and a $69,000 increase in the provision for income taxes.
Previous report
Net interest income for the three months ended June 30, 2025 increased $1.0 million to $9.8 million compared to $8.8 million for the same period in the prior year. The increase was primarily due to increased interest income on loans while holding interest expense steady. Net interest margin for the three months ended June 30, 2025 was 2.78% compared to 2.47% for the three months ended June 30, 2024. The increase in the net interest margin was attributable to the increase in interest income and the increase in average net loans.
Previous report
Interest and Dividend Income. Interest and dividend income for the three months ended June 30, 2025 increased $976,000 to $15.4 million compared to $14.4 million for the same period in the prior year. The increase was primarily due to an increase in interest income on loans receivable of $1.3 million, partially offset by a decrease in interest income on investment securities of $305,000.
Previous report
Interest and fees earned on net loans increased by $1.3 million for the three months ended June 30, 2025, compared to the same period in the prior year, due to increases in the yield earned on and the average outstanding balance of net loans. The average yield on loans increased 32 basis points to 5.02% for the three months ended June 30, 2025 compared to 4.70% for the comparable period in 2024. The average yield on mortgage related loans increased 30 basis points to 5.02%, and the yield on non-mortgage related loans increased 38 basis points to 5.03% for the three months ended June 30, 2025. The average balance of net loans increased $38.9 million to $1.07 billion for the three months ended June 30, 2025 from $1.03 billion for the same period in the prior year, with the average balance of mortgage related loans increasing $22.0 million and the non-mortgage related loans increasing $16.9 million.
Previous report
Interest Expense. Interest expense totaled $5.5 million for the three months ended June 30, 2025, a decrease of $44,000 from $5.6 million for the three months ended June 30, 2024. Interest expense on deposits increased $327,000 for the three months ended June 30, 2025 compared to the same period in the prior year, primarily due to a 37 basis point increase in the average rate paid on money market accounts and an increase in the average balance of certificates of deposit and money market accounts. The average balance of certificates of deposit increased $9.4 million and the average balance of money market accounts increased $20.1 million compared to the same period in the prior year. These increases were partially offset by a 23 basis point decline in the average rate paid on certificates of deposit and a 12 basis point decline in the rate paid on interest checking accounts. The average balance of total interest-bearing deposits increased $22.8 million to $882.1 million for the three months ended June 30, 2025, from $859.3 million for the same period in 2024, and the average rate paid increased 11 basis points to 1.72% during that same period.
Previous report
Non-Interest Income. Non-interest income increased $59,000 and totaled $3.4 million for both the three months ended June 30, 2025 and 2024. The increase was due to an increase in fees and services charges of $32,000 and other non-interest income of $22,000. The increase in fees and services charges was primarily due to higher non-sufficient fund charges of
Previous report
$75,000, partially offset by lower activity in other deposit-related fees. The increase in other non-interest income was due to insurance proceeds from BOLI death benefits that exceeded the previous receivable.
Previous report
Non-Interest Expense. Non-interest expense increased $751,000 to $11.7 million for the three months ended June 30, 2025, compared to $11.0 million for the same period in the prior year. Salaries and employee benefits increased $859,000 due to increases in compensation expense, bonus expense and payroll taxes, which was offset by a decrease in personnel expense. Other non-interest expense increased $95,000, primarily due to two factors. First there were fewer fraud recoveries during the three months ended June 30, 2025 compared to the same period in 2024. Second, the current period did not include a gain on sale of fixed assets of $82,000, which had reduced expenses during the prior year period. In addition, the three months ended June 30, 2024 included a $155,000 miscellaneous expense primarily related to a business and occupation tax accrual, which did not recur for the three months ended June 30, 2025. Other changes in non-interest expenses included decreases in occupancy and depreciation expense of $27,000, data processing expense of $22,000, marketing and advertising expense of $73,000, and professional fees of $74,000.
Reworded paragraphs (36)
Previous wording
This report contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include net interest income on a fully tax equivalent basis and net interest margin on a fully tax equivalent basis. Management uses these non-GAAP measures in its analysis of the Company’s performance. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Current wording
This report contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These measures include net interest income on a fully tax equivalent basis and net interest margin on a fully tax equivalent basis. Management uses these non-GAAP measures in its analysis of the Company’s performance. The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets. Management believes that it is a standard practice in the banking industry to present net interest income and net interest margin on a fully tax equivalent basis, and believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Previous wording
The Company is engaged primarily in attracting deposits from the general public and using those funds within its primary market area to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, residential real estate and other consumer loans. In addition, the Company, periodically purchases commercial business loans originated by a third party located outside the Company’s primary market area to supplement loan originations and diversify the commercial loan portfolio. The Company also purchases the guaranteed portion of SBA loans, originated by another financial institution and serviced by the seller, to further diversify the loan portfolio, supplement originations, and achiever higher yields than short-term investments. These SBA loans are also originated outside the Company’s primary market area. The Company’s loans receivable, net, totaled $1.05 billion at both June 30, 2025 and March 31, 2025.
Current wording
The Company is engaged primarily in attracting deposits from the general public and using those funds within its primary market area to originate commercial business, commercial real estate, multi-family real estate, land, real estate construction, residential real estate and other consumer loans. In addition, the Company periodically purchases commercial business loans originated by a third party located outside the Company’s primary market area to supplement loan originations and diversify the commercial loan portfolio. The Company also purchases the guaranteed portion of SBA loans, originated by another financial institution and serviced by the seller, to further diversify the loan portfolio, supplement originations, and achieve higher yields than short-term investments. These SBA loans are also originated outside the Company’s primary market area. The Company’s loans receivable, net, totaled $1.05 billion at both September 30, 2025 and March 31, 2025.
Previous wording
Execution of our Business Plan. The Company remains focused on expanding its loan portfolio, particularly higher-yielding commercial and construction loans, and growing its core deposit base by deepening client relationships throughout its primary market areas. While residential real estate lending was historically a primary focus, the Company has diversified its loan portfolio in recent years through the strategic growth of its commercial and construction loan portfolios. At June 30, 2025, commercial and construction loans represented 88.6% of total loans. Commercial lending, including CRE, generally involves greater credit risk than residential lending. However, these risks are often compensated by higher interest margins and fee income, contributing to enhanced loan portfolio profitability. To support its growth and profitability objectives, the Company is committed to a relationship-based banking model designed to strengthen client loyalty, identify new lending opportunities, and improve client-level profitability through cross-selling deposit, treasury management, and other banking services. The Company continues to build its core deposit base by offering competitive products, enhancing digital banking capabilities, and prioritizing high-quality client service. Additionally, the Company seeks to expand its banking franchise through de novo branch development, selective acquisitions of branches or loan portfolios, and whole bank transactions that align with its strategic and financial goals.
Current wording
Execution of our Business Plan. The Company remains focused on expanding its loan portfolio, particularly higher-yielding commercial and construction loans, and growing its core deposit base by deepening client relationships throughout its primary market areas. While residential real estate lending was historically a primary focus, the Company has diversified its loan portfolio in recent years through the strategic growth of its commercial and construction loan portfolios. At September 30, 2025, commercial and construction loans represented 88.7% of total loans. Commercial lending, including CRE, generally involves greater credit risk than residential lending. However, these risks are often compensated by higher interest margins and fee income, contributing to enhanced loan portfolio profitability. To support its growth and profitability objectives, the Company is committed to a relationship-based banking model designed to strengthen client loyalty, identify new lending opportunities, and improve client-level profitability through cross-selling deposit, treasury management, and other banking services. The Company continues to build its core deposit base by offering competitive products, enhancing digital banking capabilities, and prioritizing high-quality client service. Additionally, the Company seeks to expand its banking franchise through de novo branch development, selective acquisitions of branches or loan portfolios, and whole bank transactions that align with its strategic and financial goals.
Previous wording
Maintaining Strong Asset Quality. The Company believes that strong asset quality is a key to long-term financial success. The Company has actively managed delinquent loans and nonperforming assets by aggressively pursuing the collection of consumer debts, marketing saleable properties upon foreclosure or repossession, and through work-outs of classified assets and loan charge-offs. The Company’s approach to credit management uses well defined policies and procedures and disciplined underwriting criteria resulting in our strong asset quality and credit metrics in fiscal year 2026. Although the Company intends to prudently increase the percentage of its assets consisting of higher-yielding commercial real estate, real estate construction and commercial business and business banking loans, which offer higher risk-adjusted returns, shorter maturities and more sensitivity to interest rate fluctuations, the Company intends to manage credit exposure using experienced bankers in these areas and a conservative approach to its lending.
Current wording
Maintaining Strong Asset Quality. The Company believes that strong asset quality is a key to long-term financial success. The Company has actively managed delinquent loans and nonperforming assets by aggressively pursuing the collection of consumer debts, marketing saleable properties upon foreclosure or repossession, and through workouts of classified assets and loan charge-offs. The Company’s approach to credit management uses well defined policies and procedures and disciplined underwriting criteria resulting in our strong asset quality and credit metrics in fiscal year 2026. Although the Company intends to prudently increase the percentage of its assets consisting of higher-yielding commercial real estate, real estate construction and commercial business and business banking loans, which offer higher risk-adjusted returns, shorter maturities and more sensitivity to interest rate fluctuations, the Company intends to manage credit exposure using experienced bankers in these areas and a conservative approach to its lending.
Previous wording
Introduction of New Products and Services. The Company continuously reviews new products and services to provide its clients more financial options. All new technology and services are generally reviewed for business development and cost saving purposes. The Company continues to experience growth in client use of its online banking services, where the Bank provides a full array of traditional cash management products as well as online banking products including mobile banking, mobile deposit, bill pay, e-statements, and new deposit products. The products are tailored to meet the needs of businesses and households in the markets we serve. The Company intends to selectively add other products to further diversify revenue sources and to capture more of each client’s banking relationship by cross selling loan and deposit products and additional services, including services provided through the Trust Company to increase its fee income. Assets under management by the Trust Company totaled $900.1 million and $877.9 million at June 30, 2025 and March 31, 2025, respectively. The Company also offers a third-party identity theft product to its clients. The identity theft product assists our clients in monitoring their credit and includes an identity theft restoration service.
Current wording
Introduction of New Products and Services. The Company continuously reviews new products and services to provide its clients with more financial options. All new technology and services are generally reviewed for business development and cost saving purposes. The Company continues to experience growth in client use of its online banking services, where the Bank provides a full array of traditional cash management products as well as online banking products including mobile banking, mobile deposit, bill pay, e-statements, and new deposit products. The products are tailored to meet the needs of businesses and households in the markets we serve. The Company intends to selectively add other products to further diversify revenue sources and to capture more of each client’s banking relationship by cross-selling loan and deposit products and additional services, including services provided through the Trust Company to increase its fee income. Assets under management by the Trust Company totaled $927.0 million and $877.9 million at September 30, 2025 and March 31, 2025, respectively. The Company also offers a third-party identity theft product to its clients. The identity theft product assists our clients in monitoring their credit and includes an identity theft restoration service.
Previous wording
Attracting Core Deposits and Other Deposit Products**.** The Company offers a variety of deposit products, including personal checking, savings, and money market accounts, which generally represent lower-cost and more stable sources of funding compared to certificates of deposit. These core deposits are less sensitive to interest rate fluctuations and play a key role in supporting the Company’s funding and liquidity strategy. To strengthen its funding base, the Company continues to prioritize the growth of core deposits over higher-cost funding sources, such as brokered deposits, FHLB advances, and FRB borrowings. This approach supports loan growth while helping to manage interest expense and reduce reliance on more volatile wholesale funding sources. A key element of this strategy is enhancing and deepening client relationships. The Company believes its continued focus on relationship banking will support the expansion of both core deposits and locally sourced retail certificates of deposit. In particular, the Company seeks to grow demand deposits by building business banking relationships, supported by a suite of expanded product offerings tailored to meet the specific needs of its business clients. To further encourage growth in lower-cost deposits, the Company has invested in technology-based solutions designed to improve the client experience and support cash management needs. These include personal financial management tools, business cash management services, and remote deposit capture products, which allow the Company to effectively compete with financial institutions of all sizes. As of June 30, 2025, core branch deposits decreased $18.9 million compared to March 31, 2025. Core branch deposits accounted for 98.4% of total deposits at June 30, 2025 compared to 98.1% at March 31, 2025.
Current wording
Attracting Core Deposits and Other Deposit Products**.** The Company offers a variety of deposit products, including personal checking, savings, and money market accounts, which generally represent lower-cost and more stable sources of funding compared to certificates of deposit. These core deposits are less sensitive to interest rate fluctuations and play a key role in supporting the Company’s funding and liquidity strategy. To strengthen its funding base, the Company continues to prioritize the growth of core deposits over higher-cost funding sources, such as brokered deposits, FHLB advances, and FRB borrowings. This approach supports loan growth while helping to manage interest expense and reduce reliance on more volatile wholesale funding sources. A key element of this strategy is enhancing and deepening client relationships. The Company believes its continued focus on relationship banking will support the expansion of both core deposits and locally sourced retail certificates of deposit. In particular, the Company seeks to grow demand deposits by building business banking relationships, supported by a suite of expanded product offerings tailored to meet the specific needs of its business clients. To further encourage growth in lower-cost deposits, the Company has invested in technology-based solutions designed to improve the client experience and support cash management needs. These include personal financial management tools, business cash management services, and remote deposit capture products, which allow the Company to effectively compete with financial institutions of all sizes. As of September 30, 2025, core branch deposits decreased $8.5 million compared to March 31, 2025. Core branch deposits accounted for 97.1% of total deposits at September 30, 2025, compared to 98.1% at March 31, 2025.
Previous wording
Recruiting and Retaining Highly Competent Personnel with a Focus on Commercial Lending**.** The Company’s ability to continue to attract and retain banking professionals with strong community relationships and significant knowledge of its markets will be a key to its success. The Company believes that it enhances its market position and adds profitable growth opportunities by focusing on hiring and retaining experienced bankers focused on owner occupied commercial real estate and commercial lending, and the deposit balances that accompany these relationships. The Company emphasizes to its employees the importance of delivering exemplary client service and seeking opportunities to build further relationships with its clients. The goal is to compete with other financial service providers by relying on the strength of the Company’s client service and relationship banking approach. The Company believes that one of its strengths is that its employees are also shareholders through the Company’s ESOP and 401(k) plans.
Current wording
Recruiting and Retaining Highly Competent Personnel with a Focus on Commercial Lending**.** The Company’s ability to continue to attract and retain banking professionals with strong community relationships and significant knowledge of its markets will be a key to its success. The Company believes that it enhances its market position and adds profitable growth opportunities by focusing on hiring and retaining experienced bankers focused on owner occupied commercial real estate and commercial lending, and the deposit balances that accompany these relationships. The Company emphasizes to its employees the importance of delivering exemplary client service and pursuing opportunities to deepen client relationship. The goal is to compete with other financial service providers by relying on the strength of the Company’s client service and relationship banking approach. The Company believes that one of its strengths is that its employees are also shareholders through the Company’s ESOP and 401(k) plans.
Previous wording
Cash and cash equivalents, including interest-earning deposits in other banks, totaled $34.2 million at June 30, 2025 compared to $29.4 million at March 31, 2025. The Company’s cash balances typically fluctuate based on funding needs, deposit flows, and investment securities activity. In accordance with its asset/liability management and liquidity objectives, the Company may deploy excess liquidity into investment securities, depending on market conditions and expected returns. As part of this strategy, the Company may choose to invest in short-term certificates of deposit held for investment, all of which are fully insured by the Federal Deposit Insurance Corporation (the “FDIC”).
Current wording
Cash and cash equivalents, including interest-earning deposits in other banks, totaled $32.8 million at September 30, 2025 compared to $29.4 million at March 31, 2025. The Company’s cash balances typically fluctuate based upon funding needs, deposit activity and investment securities activity. Based on the Company’s asset/liability management program and liquidity objectives, the Company may deploy excess cash to purchase investment securities depending on the rate environment and other considerations. As a part of this strategy, the Company may choose to invest in short-term certificates of deposit held for investment, all of which are fully insured by the Federal Deposit Insurance Corporation (the “FDIC”).
Previous wording
Investment securities totaled $316.3 million and $322.5 million at June 30, 2025 and March 31, 2025, respectively. The decrease was due to normal pay downs, calls and maturities. The Company did not sell any investment securities during the three months ended June 30, 2025. The Company’s investment securities primarily consist of a combination of securities backed by government agencies (FHLMC, FNMA, SBA or GNMA). At June 30, 2025, the Company determined that none of its investment securities required an allowance for credit losses (“ACL”). For additional information on the Company’s investment securities, see Note 5 of the Notes to the Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
Current wording
Investment securities totaled $311.2 million and $322.5 million at September 30, 2025 and March 31, 2025, respectively. The decrease was due to normal pay downs, calls and maturities. The Company had no sales of investment securities during the six months ended September 30, 2025. The Company’s investment securities primarily consist of a combination of securities backed by government agencies (FHLMC, FNMA, SBA or GNMA). At September 30, 2025, the Company determined that none of its investment securities required an allowance for credit losses (“ACL”). For additional information on the Company’s investment securities, see Note 5 of the Notes to the Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
Previous wording
The Company no longer originates one-to-four family mortgage loans; however, it may purchase these loans on a selective basis consistent with its asset/liability objectives. Additionally, the Company also purchases loans that are originated by a third-party located outside the Company’s primary market area to supplement loan originations and diversify the loan portfolio. Purchased loans totaled $43.5 million at June 30, 2025 compared to $35.3 million at March 31, 2025, an increase of $8.2 million. The increase was primarily attributable to consumer loan purchases totaling $10.4 million.
Current wording
The Company no longer funds one-to-four family mortgage loans; however, will from time to time purchase these loans consistent with its asset/liability objectives. Additionally, the Company purchases loans originated by third parties outside the Company’s primary market area to supplement originations and diversify the portfolio. Purchased loans totaled $40.5 million at September 30, 2025 compared to $35.3 million at March 31, 2025, an increase of $5.2 million. This increase was primarily attributable to consumer loan purchases totaling $10.5 million, partially offset by normal paydowns and payoffs. The Company also purchases the guaranteed portion of SBA loans to help portfolio diversification, supplement originations and generate higher yields than overnight cash or other short-term investments. These SBA loans are originated through other financial institution located outside the Company’s primary market area and are purchased with servicing retained by the seller. At September 30, 2025, the Company’s purchased SBA loan portfolio was $44.6 million compared to $47.4 million at March 31, 2025.
Previous wording
The Company had no wholesale-brokered deposits at either June 30, 2025, or March 31, 2025. Core branch deposits represented 98.4% of total deposits at June 30, 2025, compared to 98.1% at March 31, 2025. The Company plans to continue prioritizing core deposits and strengthening deposit relationships through targeted client engagement strategies and competitive product offerings, rather than relying on wholesale funding sources.
Current wording
Deposits increased $4.1 million to $1.24 billion at September 30, 2025, compared to $1.23 billion at March 31, 2025 due to a concentrated effort by the Company to increase deposits through customer outreach and relationship-building initiatives, targeted promotions, etc. Certificates of deposit and interest bearing accounts increased $27.1million and $1.9 million, respectively. These increases were partially offset by decreases of $13.6 million in money market accounts and $11.7 million in regular savings accounts. The Company had no wholesale-brokered deposits at September 30, 2025 and March 31, 2025. Core branch deposits accounted for 97.1% of total deposits at September 30, 2025 compared to 98.1% at March 31, 2025. The Company plans to continue focusing on core deposits and on building client relationships rather than relying on wholesale funding sources.
Previous wording
Shareholders’ equity increased $2.0 million to $162.0 million at June 30, 2025 from $160.0 million at March 31, 2025. The increase was mainly attributable to net income of $1.2 million for the three months ended June 30, 2025 and an improvement in other comprehensive income of $1.1 million, which reflected a reduction in unrealized holding losses on securities available for sale, net of tax. The reduction in unrealized losses was due to favorable movements in market interest rates during the quarter. These increases were partially offset by cash dividend payments totaling $420,000.
Current wording
Shareholders' equity increased $3.5 million to $163.5 million at September 30, 2025, compared to $160.0 million at March 31, 2025. The increase was mainly attributable to net income of $2.3 million and a decrease in the accumulated other comprehensive loss related to the change in unrealized holding losses on securities available for sale, net of tax, of $2.5 million for the six months ended September 30, 2025. These increases were partially offset by the payment of cash dividends of $838,000 and stock repurchases of $811,000.
Previous wording
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier I capital to risk-weighted assets, core capital to total assets and tangible capital to tangible assets
Current wording
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier I capital to risk-weighted assets, core capital to total assets and tangible capital to tangible assets (set forth in the table below). Management believes the Bank met all capital adequacy requirements to which it was subject as of September 30, 2025.
Previous wording
At periodic intervals, the Company’s banking regulators routinely examine the Company’s financial condition and risk management processes as part of their legally prescribed oversight. Based on their examinations, these regulators can direct that the Company’s consolidated financial statements be adjusted in accordance with their findings. A future examination could include a review of certain transactions or other amounts reported in the Company’s 2026 consolidated financial statements.
Current wording
At periodic intervals, the Company’s banking regulators routinely examine the Company’s financial condition and risk management processes as part of their legally prescribed oversight. Based on their examinations, these regulators can direct that the Company’s consolidated financial statements be adjusted in accordance with their findings. Examiners may require adjustment to the allowance based on information available to them at the time, which could also have a material adverse impact on the Company’s financial condition and results of operations.
Previous wording
The Company must maintain an adequate level of liquidity to ensure the availability of sufficient funds for loan originations, deposit withdrawals, continuing operations, satisfying other financial commitments, and taking advantage of investment opportunities. During the three months ended June 30, 2025, deposits remained relatively stable; however, the Bank utilized its funding sources primarily to support loan commitments and manage deposit withdrawals influenced by competitive and pricing pressures.
Current wording
The Company must maintain an adequate level of liquidity to ensure the availability of sufficient funds for loan originations, deposit withdrawals, continuing operations, satisfying other financial commitments, and taking advantage of investment opportunities. During the six months ended September 30, 2025, deposits remained relatively stable; however, the Bank utilized its funding sources primarily to support loan commitments and manage deposit withdrawals influenced by competitive and pricing pressures.
Previous wording
At June 30, 2025, cash and cash equivalents and available for sale investment securities totaled $152.9 million, or 10.0% of total assets. Management believes that the Company’s security portfolio is of high quality and generally marketable. The levels of these assets are dependent on the Company’s operating, financing, lending, and investing activities during any given period. The Bank generally maintains sufficient cash and short-term investments to meet short-term liquidity needs. Its primary liquidity management strategy is to manage short-term borrowings, consistent with its asset/liability objectives. In addition to these primary sources of funds, the Bank has several secondary borrowing sources available to meet potential funding requirements, including FRB borrowings and FHLB advances. At June 30, 2025, the Bank had no advances from the FRB and maintained a credit facility with an available borrowing capacity of $195.1 million, subject to sufficient collateral. At June 30, 2025, the Bank had advances totaling $102.5 million from the FHLB and had an additional borrowing capacity of $155.9 million with the FHLB, subject to sufficient collateral and stock investment. At June 30, 2025, the Bank had sufficient unpledged collateral to allow it to utilize its available borrowing capacity from the FRB and the FHLB. Borrowing capacity may, however, fluctuate based on the quality and risk rating of pledged loan collateral, and counterparties may adjust discount rates applied to such collateral at their discretion.
Current wording
At September 30, 2025, cash and cash equivalents and available for sale investment securities totaled $151.3 million, or 10.0% of total assets. Management believes that the Company’s securities portfolio is of high quality and therefore readily marketable. The levels of these assets depends on the Company’s operating, financing, lending, and investing activities during any given period. The Bank generally maintains sufficient cash and short-term investments to meet short-term liquidity needs; however, its primary liquidity management practice is to manage short-term borrowings, consistent with its asset/liability objectives. In addition to these primary sources of funds, the Bank has several secondary borrowing sources available, including FRB borrowings and FHLB advances. At September 30, 2025, the Bank had no advances outstanding with the FRB and maintained a credit facility with an available borrowing capacity of $288.5 million, subject to sufficient collateral. At September 30, 2025, the Bank had $52.3 million in outstanding FHLB advances and an additional borrowing capacity of $207.6 million, subject to sufficient collateral and stock investment. At September 30, 2025, the Bank had sufficient unpledged collateral to utilize its available borrowing capacity from both the FRB and the FHLB. Borrowing capacity may, however, fluctuate based on acceptability and risk rating of loan collateral, and counterparties could adjust discount rates applied to such collateral at their discretion.
Previous wording
An additional source of wholesale funding includes brokered certificates of deposit. While the Company has utilized brokered deposits from time to time, historically it has not extensively relied on brokered deposits to fund its operations. At June 30, 2025 and March 31, 2025, the Bank had no wholesale brokered deposits. The Bank also participates in the Certificate of Deposit Account Registry Services (“CDARS”) and Insured Cash Sweep (“ICS”) deposit products, which allow the Company to accept deposits in excess of the FDIC insurance limit for depositors while obtaining “pass-through” insurance for total deposits. The Bank’s CDARS and ICS balances were $34.0 million, or 2.81% of total deposits and $36.0 million, or 2.92% of total deposits, at June 30, 2025 and March 31, 2025 respectively. The combination of all the Bank’s funding sources gives the Bank available liquidity of $787.4 million, or 51.92% of total assets at June 30, 2025.
Current wording
An additional source of wholesale funding includes brokered certificates of deposit. While the Company has utilized brokered deposits from time to time, historically it has not extensively relied on brokered deposits to fund its operations. At September 30, 2025 and March 31, 2025, the Bank had no wholesale brokered deposits. The Bank also participates in the Certificate of Deposit Account Registry Services (“CDARS”) and Insured Cash Sweep (“ICS”) deposit products, which allow the Company to accept deposits in excess of the FDIC insurance limit for depositors while obtaining “pass-through” insurance for total deposits. The Bank’s CDARS and ICS balances were $33.5 million, or 2.71% of total deposits, and $36.0 million, or 2.92% of total deposits, at September 30, 2025 and March 31, 2025, respectively. The combination of all the Bank’s funding sources gives the Bank available liquidity of $792.0 million, or 52.47% of total assets at September 30, 2025.
Previous wording
At June 30, 2025, the Company had total commitments of $100.9 million, which included commitments to extend credit of $14.1 million, unused lines of credit totaling $73.5 million, undisbursed real estate construction loans totaling $11.7 million, and standby letters of credit totaling $1.6 million. The Company anticipates that it will have sufficient funds available to meet current loan commitments. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2025 totaled $227.5 million. Historically, the Bank has been able to retain a significant amount of its deposits as they mature. Offsetting these cash outflows are scheduled loan and investment securities maturities of less than one year totaling $26.0 million and $12.4 million, respectively, at June 30, 2025.
Current wording
At September 30, 2025, the Company had total commitments of $130.4 million, which included commitments to extend credit of $13.5 million, unused lines of credit of $91.3 million, undisbursed real estate construction loans of $24.0 million, and standby letters of credit of $1.6 million. The Company anticipates having sufficient funds available to meet these commitments. Certificates of deposit scheduled to mature in less than one year from September 30, 2025 totaled $250.3 million, and historically, the Bank has been able to retain a significant portion of maturing deposits. Offsetting these cash
Previous wording
The Company incurs capital expenditures on an ongoing basis to expand and improve our product offerings, enhance and modernize our technology infrastructure, and to introduce new technology-based products to compete effectively in our markets. We evaluate capital expenditure projects based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and client retention) and our expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for our services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations. Based on our current capital allocation objectives, during the remainder of fiscal 2026 we expect cash expenditures of approximately $1.3 million for capital investment in premises and equipment.
Current wording
The Company incurs capital expenditures on an ongoing basis to expand and improve product offerings, enhance and modernize technology infrastructure, and to introduce new technology-based products to compete effectively. We evaluate capital expenditure projects based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and client retention) and our expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for our services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations. Based on our current capital allocation objectives, during the remainder of fiscal 2026 we expect cash expenditures of approximately $915,000 for capital investment in premises and equipment.
Previous wording
Riverview Bancorp, Inc., as a separate legal entity from the Bank, must provide for its own liquidity. Sources of capital and liquidity for Riverview Bancorp, Inc. include dividends from the Bank, as well as the potential issuance of debt or equity securities. Dividends and other capital distributions from the Bank are subject to regulatory notice and may be subject to additional limitations depending on the Bank’s financial condition and applicable regulations. Management currently expects to continue the Company’s current practice of paying quarterly cash dividends on its common stock subject to the Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. As of June 30, 2025, the quarterly common stock dividend rate was $0.02 per share, as approved by the Board of Directors. Management believes this dividend rate appropriately balances the Company’s objectives of supporting investment in the Bank, while returning capital to shareholders. Assuming continued payment during fiscal 2026 at this rate of $0.02 per share, average total dividends paid each quarter would be approximately $420,000 based on the number of the Company’s outstanding shares as of June 30, 2025. At June 30, 2025, Riverview Bancorp, Inc. had $5.2 million in cash to meet its liquidity needs.
Current wording
Riverview Bancorp, Inc., as a separate legal entity from the Bank, must provide for its own liquidity. Sources of capital and liquidity for Riverview Bancorp, Inc. include dividends from the Bank, as well as the potential issuance of debt or equity securities. Dividends and other capital distributions from the Bank are subject to regulatory notice and may be subject to additional limitations depending on the Bank’s financial condition and applicable regulations. Management currently expects to continue the Company’s current practice of paying quarterly cash dividends on its common stock subject to the Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice. As of September 30, 2025, the quarterly common stock dividend rate was $0.02 per share, as approved by the Board of Directors. Management believes this dividend rate appropriately balances the Company’s objectives of supporting investment in the Bank, while returning capital to shareholders. Assuming continued payment during fiscal 2026 at this rate of $0.02 per share, average total dividends paid each quarter would be approximately $419,000 based on the number of the Company’s outstanding shares as of September 30, 2025. At September 30, 2025, Riverview Bancorp, Inc. had $5.2 million in cash to meet its liquidity needs.
Previous wording
Nonperforming assets were $143,000 or 0.01% of total assets at June 30, 2025, compared to $155,000 or 0.01% of total assets at March 31, 2025. The Company had net recoveries totaling $52,000 for the three months ended June 30, 2025 compared to net charge-offs of $90,000 during fiscal 2025. The Company had no other real estate owned or foreclosed assets at June 30, 2025 and March 31, 2025.
Current wording
Nonperforming assets were $776,000 or 0.05% of total assets at September 30, 2025, compared to $155,000 or 0.01% of total assets at March 31, 2025. The Company had net recoveries totaling $53,000 for the six months ended September 30, 2025 compared to net charge-offs of $90,000 during fiscal 2025. The Company had no other real estate owned or foreclosed assets at September 30, 2025 or March 31, 2025.
Previous wording
The ACL for loans was $15.4 million or 1.44% of total loans at June 30, 2025 and $15.4 million or 1.45% of total loans at March 31, 2025. The Company did not record a provision for credit losses for either the three months ended June 30, 2025 or 2024. At June 30, 2025, the ACL provided coverage of more than 10,800% of nonperforming loans, compared to approximately 9,900% at March 31, 2025, reflecting continued asset quality strength and conservative reserve levels. The general valuation allowance on pooled, or collectively evaluated, loans was 1.42% at June 30, 2025 and 1.45% at March 31, 2025.
Current wording
The ACL for loans was $15.4 million or 1.44% of total loans at September 30, 2025, and $15.4 million or 1.45% of total loans at March 31, 2025. The Company did not record a provision for credit losses for the six months ended September 30, 2025, compared to $100,000 provision for the same period in the prior fiscal year. At September 30, 2025, the ACL provided coverage of more than 1,900% of nonperforming loans, compared to approximately 9,900% at March 31, 2025, reflecting continued asset quality strength and conservative reserve levels. The general valuation allowance on pooled, or collectively evaluated, loans was 1.42% at September 30, 2025 and 1.45% at March 31, 2025.
Previous wording
Management considers the ACL for loans and unfunded loan commitments to be adequate at June 30, 2025 based on an evaluation of various factors affecting the loan portfolio. The Company believes the ACL has been established in accordance with GAAP, however, material increases may be required if economic conditions worsen, regulatory outcomes change, or other relevant factors emerge. Significant increases in the ACL may also be necessary if borrower credit quality
Current wording
Management considers the ACL for loans and unfunded loan commitments to be adequate at September 30, 2025 based on an evaluation of various factors affecting the loan portfolio. The Company believes the ACL has been established in accordance with GAAP; however, material increases may be required if economic conditions worsen, regulatory outcomes change, or other relevant factors emerge. Significant increases in the ACL may also be necessary if borrower credit quality deteriorates or collateral values decline. Such an increase could negatively impact the Company’s future financial condition and results of operations. For further information regarding the Company’s individually evaluated loans and ACL for loans and unfunded loan commitments, see Note 6 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
Previous wording
At June 30, 2025, loans delinquent 30-89 days totaled $3.7 million or 0.34% of total loans, down from $4.1 million or 0.38% of total loans at March 31, 2025. The decrease was primarily attributable to the decrease in fully guaranteed SBA and USDA loans. These loans, while delinquent are classified as pass rated loans and are excluded from nonperforming and ACL calculations due to the full government guarantee and the expectation that all contractual principal and interest will be collected.
Current wording
At September 30, 2025, loans delinquent 30-89 days totaled $3.5 million or 0.33% of total loans, down from $4.1 million or 0.38% of total loans at March 31, 2025. The decrease was primarily attributable to the decrease in fully guaranteed SBA and USDA loans. These loans, while delinquent are classified as pass rated loans and are excluded from nonperforming and ACL calculations due to the full government guarantee and the expectation that all contractual principal and interest will be collected. The Company had no accruing loans 90 days or more delinquent at September 30, 2025 and March 31, 2025.
Previous wording
At June 30, 2025, CRE loans represented the largest portion of the loan portfolio at 56.14% of total loans and commercial business represented 21.70% of total loans.
Current wording
At September 30, 2025, CRE loans represented the largest portion of the loan portfolio at 56.3% of total loans and commercial business represented 21.3% of total loans.
Previous wording
Goodwill is initially recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is presumed to have an indefinite useful life and is tested, at least annually, for impairment at the reporting unit level. The Company has two reporting units, the Bank and the Trust Company, for purposes of evaluating goodwill for impairment. All the Company’s goodwill has been allocated to the Bank reporting unit. The Company performs an annual review in the third quarter of each fiscal year, or more frequently if indications of potential impairment exist, to determine if the recorded goodwill is impaired. If the fair value exceeds the carrying amount, then goodwill is not considered impaired. If the carrying amount exceeds its fair value, an impairment loss would be recognized equal to the amount of excess, limited to the amount of total goodwill allocated to that reporting unit.
Current wording
Goodwill is recorded when the purchase price paid for an acquisition exceeds the estimated fair value of the net identified tangible and intangible assets acquired. Goodwill is presumed to have an indefinite useful life and is tested at least annually for impairment at the reporting unit level. The Company has two reporting units, the Bank and the Trust Company, for purposes of evaluating goodwill for impairment. All of the Company’s recorded goodwill has been allocated to the Bank reporting unit. The Company performs an annual review in the third quarter of each fiscal year, or more frequently if indications of potential impairment exist, to determine whether recorded goodwill is impaired. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not considered impaired. If the carrying amount exceeds fair value, an impairment loss would be recognized equal to the amount of excess, limited to the amount of total goodwill allocated to that reporting unit.
Previous wording
A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the Company’s consolidated financial statements.
Current wording
A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. Any adverse change in these factors could have a significant impact on the recoverability of goodwill and could have a material impact on the Company’s consolidated financial statements.
Previous wording
The Company also completed a qualitative assessment of goodwill as of June 30, 2025 and concluded that it is more likely than not that the fair value of the Bank (the reporting unit), exceeds its carrying value at that date. Accordingly, no goodwill impairment was recognized. However, future impairment charges could occur if adverse events or changes in circumstances arise, including, but not limited to: (i) a sustained decline in the Company’s stock price or that of peer institutions, (ii) revenue declines beyond current forecasts, (iii) significant adverse changes in the operating environment for the financial industry, or (iv) increases in the value of the Company’s assets without a corresponding increase in the value of the reporting unit.
Current wording
Future impairment charges could occur if adverse events or changes in circumstances arise, including, but not limited to: (i) a sustained decline in the Company’s stock price or that of peer institutions, (ii) revenue declines beyond current forecasts, (iii) significant adverse changes in the operating environment for the financial industry, or (iv) increases in the value of the Company’s assets without a corresponding increase in the value of the reporting unit. Changes in circumstances at or after the measurement date, or changes in the assumptions and estimates used in assessing goodwill, could also result in a partial or full impairment.
Previous wording
Additionally, changes in circumstances at or after the measurement date, or changes in the assumptions and estimates used in assessing goodwill, could result in a partial or full impairment of our goodwill. While any such impairment charge would adversely affect the Company’s financial condition and results of operations, it would not impact the Company’s liquidity, operations, or regulatory capital ratios.
Current wording
While any such impairment charge would adversely affect the Company’s financial condition and results of operations, it would not impact the Company’s liquidity, operations, or regulatory capital ratios.
Previous wording
Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024
Current wording
Comparison of Operating Results for the Three and Six Months Ended September 30, 2025 and 2024
Previous wording
Interest expense on borrowings decreased $371,000 for the three months ended June 30, 2025 compared to the same period in the prior year, primarily due to a decline in the average rate paid on FHLB advances. The average rate paid on FHLB advances decreased 133 basis points to 3.20%, while the average balance of FHLB advances remained relatively stable at $110.3 million for the three months ended June 30, 2025, compared to $111.7 million for the same period in the prior year.
Current wording
Interest expense on borrowings decreased $914,000 and $1.3 million for the three and six months ended September 30, 2025, respectively, compared to the same periods in the prior year, primarily due to lower average balances and rates on FHLB advances. The average balance of FHLB advances was $63.3 million and $86.7 million for the three and six months ended September 30, 2025, respectively, compared to $114.5 million and $113.1 million for the same periods in the prior year. The average rate on FHLB advances declined to 4.57% and 4.58% for the three and six months ended September 30, 2025, respectively, compared to 5.44% and 5.52% for the same periods the prior year.
Previous wording
The following table sets forth the effects of changing rates and volumes on net interest income of the Company for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Variances that were insignificant have been allocated based upon the percentage relationship of changes in volume and changes in rate to the total net change (in thousands).
Current wording
The following table sets forth the effects of changing rates and volumes on net interest income of the Company for the three and six months ended September 30, 2025, compared to the three and six months ended September 30, 2024. Variances that were insignificant have been allocated based upon the percentage relationship of changes in volume and changes in rate to the total net change (in thousands).
Previous wording
**Provision for Credit Losses.**The Company recorded no provision for credit losses for the three months ended June 30, 2025 and 2024. The lack of provision for credit losses for the three months ended June 30, 2025 reflects assumptions used in the Company’s forecast of the economic environment, including the effects of local, national, and global events. In addition, expected loss estimates considered various borrower and portfolio-level factors, such as client-specific information, changes in risk ratings, projected delinquencies, and the potential impact of economic conditions on borrowers' ability to repay. For the three months ended June 30, 2025, net recoveries totaled $52,000 compared to insignificant net recoveries for the three months ended June 30, 2024.
Current wording
**Provision for Credit Losses.**The Company recorded no provision for credit losses for the three and six months ended September 30, 2025, compared to a provision for credit losses of $100,000 for the three and six months ended September 30, 2024. The lack of a provision in the current periods reflects management’s assumptions regarding the economic outlook, including the effects of local, national and global events. Expected loss estimates also incorporate client-specific information, changes in risk ratings, projected delinquencies, and the impact of economic conditions on borrowers' ability to repay.
Previous wording
While we believe the estimates and assumptions used in determining of the adequacy of the ACL are reasonable, there can be no assurance that such estimates and assumptions will not prove to be incorrect, or that future provisions will not exceed historical levels. Any increase in the ACL could have a material adverse effect on our financial condition and results of operations. A further deterioration in national or local economic conditions, such as those driven by inflation, recession, or slowed economic growth, could result in a material increase in the ACL. In addition, the ACL is subject to periodic regulatory review as part of the routine examination process. Examiners may require adjustment to the allowance based on information available to them at the time, which could also have a material adverse impact on the Company’s financial condition and results of operations.
Current wording
While we believe the estimates and assumptions used in determining the adequacy of the ACL are reasonable, there can be no assurance that such estimates and assumptions will not prove to be incorrect, or that future provisions will not exceed historical levels. Any increase in the ACL could have a material adverse effect on our financial condition and results of operations. A further deterioration in national or local economic conditions, such as those driven by inflation, recession, or slowed economic growth, could result in a material increase in the ACL. In addition, the ACL is subject to periodic regulatory review as part of the routine examination process. Examiners may require adjustment to the allowance based on information available to them at the time, which could also have a material adverse impact on the Company’s financial condition and results of operations.
Previous wording
Nonperforming loans were $143,000 at June 30, 2025, compared to $155,000 at March 31, 2025. The ratio of the ACL for loans to nonperforming loans was approximately 10,800% at June 30, 2025 compared to approximately 9,900% at March 31, 2025. See “Asset Quality” above for additional information considered by management in determining the appropriate level of the ACL.
Current wording
Nonperforming loans were $776,000 at September 30, 2025, compared to $155,000 at March 31, 2025. The ratio of the ACL for loans to nonperforming loans exceeded 1,900% at September 30, 2025 compared to 9,900% at March 31, 2025.
Previous wording
Income Taxes. The provision for income taxes was $322,000 for the three months ended June 30, 2025, compared to $253,000 for the same period in the prior year. The increase in the provision for income taxes was due to higher pre-tax income for the three months ended June 30, 2025, compared to the same period in the prior year. The Company’s effective tax rate was 20.8% for both the three months ended June 30, 2025 and 2024. At June 30, 2025, management deemed that a valuation allowance related to the Company’s deferred tax asset was not necessary. At June 30, 2025, the Company had a net deferred tax asset of $8.3 million compared to $8.6 million at March 31, 2025.
Current wording
Income Taxes. The provision for income taxes was $296,000 and $618,000 for the three and six months ended September 30, 2025, compared to $425,000 and $678,000 for the same periods in the prior year. The decrease reflects lower pre-tax income. The Company’s effective tax rate was 21.2% and 21.0% for the three and six months ended September 30, 2025, compared to 21.4% and 21.2% for the same periods in 2024. At September 30, 2025, management concluded that a valuation allowance related to the Company’s deferred tax asset was not necessary. At September 30, 2025, the net deferred tax asset totaled $7.8 million, compared to $8.6 million at March 31, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The Company performed its annual goodwill impairment test as of October 31, 2024, and determined that no impairment of goodwill existed. The Company also completed a qualitative assessment of goodwill as of September 30, 2025, and concluded that it is more likely than not that the fair value of the Bank (the reporting unit), exceeds its carrying value at that date. Accordingly, no goodwill impairment was recognized.
Current report — wording carried from elsewhere
See “Asset Quality” above for additional information related to asset quality that management considers in determining the appropriate level of the ACL.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
The Company also purchases the guaranteed portion of SBA loans to further diversify the loan portfolio, supplement loan originations, and generate higher yields relative to cash or other short-term investments. These SBA loans are originated through another financial institution located outside the Company’s primary market area and are purchased with servicing retained by the seller. At June 30, 2025, the Company’s purchased SBA loan portfolio was $47.0 million compared to $47.4 million at March 31, 2025.
Previous report — wording carried elsewhere
(set forth in the table below). Management believes the Bank met all capital adequacy requirements to which it was subject as of June 30, 2025.
Previous report — wording carried elsewhere
deteriorates or collateral values decline. Such an increase could negatively impact the Company’s future financial condition and results of operations. For further information regarding the Company’s individually evaluated loans and ACL for loans and unfunded loan commitments, see Note 6 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q.
Previous report — wording carried elsewhere
The Company performed its annual goodwill impairment test as of October 31, 2024 and determined that no impairment of goodwill exists.