Riverview Bancorp, Inc. — Second Quarter 2027 Earnings Summary

Financial Performance:

• Reported net income of $2.0 million ($0.10 per diluted share) for the quarter ended September 30, 2026, compared to $1.7 million ($0.08 per diluted share) in the preceding quarter and $1.1 million ($0.05 per diluted share) in the second quarter of 2025.
• Net interest income increased to $11.8 million for the quarter, up from $9.8 million in the second quarter of 2026 and $11.4 million in the preceding quarter.
• Net interest margin (NIM) expanded to 3.40% for the quarter, compared to 2.76% in the second quarter of 2026 and 3.34% in the preceding quarter.
• Non-interest income was $3.6 million for the quarter, down from $3.8 million in the second quarter of 2026.
• Non-interest expense was $12.9 million for the quarter, up from $12.2 million in the second quarter of 2026.
• The efficiency ratio improved to 83.74% for the quarter, compared to 89.76% in the second quarter of 2026 and 85.82% in the preceding quarter.
• Total loans increased $14.5 million to $1.11 billion at September 30, 2026.
• Total deposits increased $20.3 million to $1.28 billion at September 30, 2026.
• Shareholders' equity was $138.2 million at September 30, 2026, down from $145.3 million at June 30, 2026.
• Tangible book value per share (non-GAAP) was $5.63 at September 30, 2026, down from $5.86 at June 30, 2026.
• Book value per share (GAAP) was $7.00 at September 30, 2026.
• Non-performing assets were $8.6 million, or 0.58% of total assets, at September 30, 2026.
• Net loan recoveries were $374,000 for the quarter.
• No provision for credit losses was recorded for the quarter.
• Allowance for credit losses was $15.7 million at September 30, 2026, representing 1.42% of total loans.
• Total risk-based capital ratio was 15.50% at September 30, 2026.
• Tier 1 leverage ratio was 10.88% at September 30, 2026.
• Available liquidity was approximately $469.1 million at September 30, 2026.

Guidance and Future Outlook:

• Management indicated that the loan pipeline was one of the strongest in the company's history at $139.6 million as of September 30, 2026.
• The company expects to continue reinvesting proceeds from investment securities sales through loan originations, purchases of higher-yielding bonds, repayment of Federal Home Loan Bank borrowings, or cash reserves.
• Management stated the combination of growth, profitability, and discipline positions the company well for the second half of the fiscal year.
• Loan repricing and maturities are projected for fiscal years 2027 through 2029 and beyond, with weighted average rates ranging from 4.90% to 6.05% for the upcoming years.
• Management plans to continue investing in people and key infrastructure while managing costs carefully to maximize shareholder returns.

Business Segments and Product Lines:

• Asset management fees were $1.6 million for the quarter, with Riverview Trust Company's assets under management at $941.8 million.
• New loan originations totaled $53.5 million during the quarter.
• Undisbursed construction loans were $12.8 million at September 30, 2026.
• Revolving commercial business loan commitments totaled $57.4 million with a utilization rate of 35.8%.
• The office building loan portfolio totaled $115.9 million, and the hotel and motel loan portfolio totaled $116.0 million.
• Deposit mix shifted with increases in money market deposit accounts ($25.9 million) and non-interest checking accounts ($22.6 million), offset by decreases in interest checking accounts ($22.8 million) and certificates of deposit ($5.6 million).
• Investment securities decreased $13.1 million to $162.8 million due to balance sheet optimization and unrealized losses.
• FHLB advances remained unchanged at $16.1 million for the quarter.

Market and Competitive Landscape:

• Riverview is the only bank headquartered in Vancouver, Washington, operating in a market supported by population gains and major redevelopment projects.
• The local economy features strength in health care, construction, manufacturing, logistics, and technology, anchored by employers such as PeaceHealth, HP, and WaferTech/TSMC.
• The company extends its reach into Northwest Oregon, supported by technology, advanced manufacturing, and consumer goods companies like Intel, Nike, and Columbia Sportswear.
• The company noted that the increase in classified assets compared to the prior year was due to three specific borrower downgrades rather than a systemic credit segment issue.

Risks and Challenges:

• The press release includes a standard "Safe Harbor" statement noting risks such as adverse economic conditions, inflation, labor shortages, potential recession, and geopolitical instability.
• Risks include credit risks related to loan delinquencies, write-offs, and deterioration in housing and commercial real estate markets.
• Potential impacts from changes in interest rates, deposit interest rates, and funding sources are noted.
• Risks include the unexpected outflow of uninsured deposits, which could require selling investment securities at a loss.
• Regulatory risks include potential requirements to increase allowance for credit losses, write-down assets, or reclassify assets.
• Operational risks include disruptions to information technology systems, security breaches, and staffing fluctuations.

Management Commentary and Tone:

• Nicole Sherman, President and CEO, stated that the results demonstrate delivery on strategic milestones, noting the highest net income in 12 quarters and a strong loan pipeline.
• David Lam, EVP and CFO, highlighted that the meaningful expansion in net interest margin demonstrates the cumulative benefit of balance sheet repositioning and sustained cost discipline.
• Mike Sventek, EVP and Chief Lending Officer, attributed loan yield margin expansion to sustained progress in repricing existing loans, pricing new originations, and improving portfolio composition.
• Dan Cox, EVP and COO, noted that non-interest expenses remained flat due to disciplined expense management, with annual compensation increases offset by lower advertising, sponsorship, and legal fees.
• Robert Benke, EVP and Chief Credit Officer, emphasized disciplined underwriting and close portfolio monitoring as core to managing credit, particularly as interest rates trend upward.

Other Key Points:

• On October 20, 2026, the company paid a cash dividend of $0.02 per share.
• The January 2026 stock repurchase program was completed on August 7, 2026, repurchasing 732,834 shares for a total cost of $4.0 million.
• On August 20, 2026, the Board adopted a new stock repurchase program to purchase up to $4.0 million of outstanding shares. As of September 30, 2026, the company had purchased 127,271 shares for $748,000, with approximately $3.3 million remaining.
• The company completed its strategic balance sheet optimization six months prior to the quarter, which contributed to the reduction in investment securities and FHLB advances.
• The company operates 17 branches, including 13 in the Metro Portland-Vancouver area and 3 lending centers.