Riverview Bancorp (NASDAQ: RVSB) books $11.4M loss to lift net interest margin

Rhea-AI Filing Summary

Riverview Bancorp, Inc. implemented a strategic balance sheet optimization focused on its investment securities portfolio. The company reclassified its entire held-to-maturity securities to available-for-sale and then sold $149.3 million of lower-yielding securities with an average yield of 1.62%, realizing an estimated pre-tax loss of $11.4 million.

The reclassified bonds will now be marked to fair value through accumulated other comprehensive income, which will reduce equity, but management notes capital remains strong and the bank is well-capitalized. Riverview plans to reinvest sale proceeds into higher-yielding bonds, support loan originations, pay down Federal Home Loan Bank borrowings, or hold cash.

The company expects this repositioning to add about 25 basis points to net interest margin and approximately $0.13 to earnings per share annually, with an estimated earn-back period of less than 3.5 years, and it does not expect any impact on its existing stock buyback program.

Insights

Banking sector analyst

Riverview takes a one-time loss to improve future margins.

Riverview Bancorp has crystallized an estimated pre-tax loss of $11.4 million by selling $149.3 million of low-yield securities averaging 1.62%. This follows reclassifying all held-to-maturity securities to available-for-sale so they can be sold and repriced more flexibly.

Management plans to redeploy proceeds into higher-yielding bonds, fund loan originations, pay down Federal Home Loan Bank borrowings, or hold cash. They state capital remains strong and the bank continues to be well-capitalized, which helps absorb the equity impact from marking securities to market.

The company targets an earn-back period of under 3.5 years, with the repositioning expected to add about 25 basis points to net interest margin and roughly $0.13 in annual earnings per share once fully realized. Actual benefit will depend on reinvestment opportunities and loan demand as the strategy is executed.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 25, 2026

RIVERVIEW BANCORP, INC.

(Exact name of registrant as specified in its charter)

	Washington		000-22957		91-1838969
	(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

	900 Washington Street, Suite 900, Vancouver, Washington		98660
	(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:  (360) 693-6650

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐        Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, Par Value $0.01 per share		RVSB		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Item 8.01. Other Events.

On March 25, 2026, Riverview Bancorp, Inc. issued a press release regarding the implementation of a balance sheet optimization strategy related to its investment securities portfolio. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01  Financial Statements and Exhibits.

(d) Exhibits

99.1     News Release of Riverview Bancorp, Inc. dated March 25, 2026.

104     Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RIVERVIEW BANCORP, INC.
Date:  March 25, 2026	/s/ David Lam
	David Lam Chief Financial Officer (Principal Financial Officer)

Exhibit 99.1

Contacts: Nicole Sherman and David Lam
Riverview Bancorp, Inc. 360-693-6650

Riverview Bank Announces Strategic Balance Sheet Optimization

Vancouver, WA – March 25, 2026 - Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”), parent company of Riverview Bank (the “Bank”) implemented a strategic balance sheet optimization. This included the reclassification of its entire held-to-maturity (“HTM”) securities to available-for-sale (“AFS”) securities. After the reclassification, Riverview sold $149.3 million in lower-yielding book value investment securities, with an average yield of 1.62%, for an estimated pre-tax loss of $11.4 million. A targeted approach was used to identify lower-yielding bonds, balancing the respective loss in relation to its book value. The goal was to minimize the loss while maximizing proceeds from the sale. Reclassifying the bonds from HTM to AFS will reduce overall equity. The reclassified bonds will be measured at fair value, with the impact recorded in accumulated other comprehensive income. Given Riverview’s strong capital levels, no additional capital was needed to support the strategic optimization, and Riverview remains well-capitalized for regulatory purposes.

Riverview is taking a strategic and thoughtful approach to the use of excess capital in the reinvestment of the proceeds from the above-mentioned investment securities sale. Riverview expects to reinvest the proceeds into a combination of higher-yielding bonds, which will be classified as available for sale at the time of purchase, support loan originations, pay down its Federal Home Loan Bank borrowings, or hold in cash. Deploying these funds into higher-yielding earning assets or paying down borrowings will inherently increase the net interest income of the Bank on a go-forward basis. Dependent upon the combination of redeployment of funds, Riverview expects the estimated earn-back will be less than 3.5 years. The strategic optimization is expected to add approximately 25 basis points to net interest margin and approximately $0.13 to earnings per share annually, once fully realized.

This strategic optimization is not expected to impact Riverview’s ability to continue with its existing active stock buyback.

“Over the past 20 months since joining Riverview as CEO, it's been energizing to experience our teams consistently delivering on our five strategic priorities. This balance sheet optimization is part of our profitable growth priority. The repositioning of the securities portfolio during the fourth fiscal quarter ending March 31 reflects a prudent deployment of excess capital aimed at enhancing our net interest margin. We expect this strategic optimization to enhance future earnings benefit and strengthen the value of our company,” said Nicole Sherman, CEO and President.

Riverview Bank Strategic Balance Sheet Optimization

March 25, 2026

Page 2

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.51 billion at December 31, 2025, it is the parent company of Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial, business and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

This press release contains statements that the Company believes are “forward-looking statements.” These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make including those described in 1A (Risk Factors) of the Company’s Form 10-K for the fiscal year ended March 31, 2025. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

FAQ

What balance sheet strategy did Riverview Bancorp (RVSB) announce?

Riverview Bancorp announced a strategic balance sheet optimization centered on its investment securities portfolio. It reclassified all held-to-maturity securities to available-for-sale, then sold lower-yielding bonds to reposition into higher-yielding assets, loans, debt reduction, or cash while remaining well-capitalized.

How much in securities did Riverview Bancorp (RVSB) sell and at what loss?

Riverview Bancorp sold $149.3 million of lower-yielding investment securities with an average yield of 1.62%. The sale is expected to result in an estimated pre-tax loss of $11.4 million as part of a broader balance sheet optimization strategy to improve future earnings.

How is Riverview Bancorp’s optimization expected to affect net interest margin and EPS?

The optimization is expected to add approximately 25 basis points to Riverview Bancorp’s net interest margin and about $0.13 to annual earnings per share once fully realized. Management estimates the earn-back period for the realized loss will be less than 3.5 years.

Will Riverview Bancorp (RVSB) need new capital for this securities repositioning?

Riverview Bancorp does not expect to need new capital for this repositioning. Management states capital levels are strong, the bank remains well-capitalized for regulatory purposes, and the optimization does not require additional capital support despite the realized securities loss and equity impact.

Does Riverview Bancorp’s strategy affect its stock buyback program?

The company states that this strategic balance sheet optimization is not expected to affect its existing stock buyback program. Despite realizing a securities loss and reducing equity, Riverview Bancorp plans to continue its active repurchase activity under the current authorization.

How does Riverview Bancorp plan to use proceeds from the securities sale?

Riverview Bancorp plans to reinvest sale proceeds into higher-yielding available-for-sale bonds, support new loan originations, pay down Federal Home Loan Bank borrowings, or hold funds in cash. Management expects these moves to increase net interest income over time.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 riv8k32526exh991.htm 11.3 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 21.5 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 15.7 KB