Riverview Bancorp Inc.
Annual Report 2023

Plain-text annual report

Riverview is committed to community As a community bank, Riverview supports organizations immediately around our branches and buildings. It just makes sense. We rely on our employees to advocate for the needs in their own communities. Not only are we supporting financially, but we are supporting with our time and talent. Helping area nonprofits by lending staff expertise for board and committee service is another way Riverview supports community. Together, we can do great things. $269,859 Donations to local organizations whose missions include: Animal Welfare Childrens Services Civic Services Early Childhood Education Economic Development Environment Family Services Financial Literacy Food Drives Homeownership Parks and Recreation Senior Services Veteran Services 105 Organizations we supported 32 Board of director/committee positions held by staff members American Legion Adventist Medical Foundation Clark County Historical Museum Coastal Conservation Association Community Bankers of Washington Craft3 East Portland Rotary Club East Vancouver Business Association Evergreen Public Schools Evergreen School District Foundation Dooley Rebekah Lodge Foundation Fosterful Goldendale Community Housing Association Identity Clark County Klickitat County Veterans Advisory Board Klineline Kids Fishing Nonprofit Leadership Clark County Miss Clark County Scholarship Organization Miss Washington’s Teen Scholarship Organization Oregon Golf Association Pacific Northwest Golf Association REAP Risk Management Association Salvation Army Skamania County Economic Development Council Skamania County Fair Board Ukrainian American Cultural Association Union High School Orchestra Boosters Washington State University Advisory Council Washington State University Mentor Analysis Program Washougal High School Business Advisory Committee West Columbia Gorge Humane Society Corporate Office 900 Washington Street, Suite 900 Vancouver, Washington 98660 360-514-5000 | riverviewbank.com Stock Listing NASDAQ Global Select Market Symbol RVSB Transfer Agent Broadridge Corporate Issuer Solutions, Inc. 855-802-4983 | Shareholder@Broadridge.com Annual Report 2023 Riverview Bancorp, Inc. Financial Highlights FOR THE YEAR ENDED MARCH 31 2023 2022 2021 (Dollars in thousands, except share data) Interest income and dividend income Interest expense Net interest income Provision for (recapture of) loan losses Net interest income after provision for (recapture of) loan losses Non-interest income Non-interest expense Income before income taxes Provision for income taxes Net income Average # of common shares outstanding 55,666 4,060 51,606 750 50,856 12,194 39,371 23,679 5,610 18,069 21,637,526 49,825 2,200 47,625 (4,625) 52,250 12,744 36,718 28,276 6,456 21,820 22,213,029 48,344 3,427 44,917 6,300 38,617 11,090 36,254 13,453 2,981 10,472 22,296,195 PER COMMON SHARE Net income (per diluted share) Cash dividends Book value Closing price 2023 0.83 0.240 7.32 5.34 2022 0.98 0.215 7.11 7.55 2021 0.47 0.200 6.78 6.93 FISCAL YEAR END BALANCES 2023 2022 2021 Assets Loans, net Deposits Shareholders’ equity Total # of common shares outstanding Full-time equivalent employees Number of banking facilities FINANCIAL RATIOS Return on average assets Return on average common equity Net interest margin Efficiency ratio Non-performing assets to total assets Allowance for loan losses to total loans Equity to assets at period end 1,589,712 993,547 1,265,217 155,239 21,221,960 229 17 1,740,096 975,885 1,533,878 157,249 22,127,396 225 17 1,549,158 924,057 1,346,060 151,594 22,351,235 232 17 2023 1.08% 11.71% 3.26% 61.71% 0.12% 1.52% 9.77% 2022 1.31% 13.62% 3.03% 60.82% 1.27% 1.47% 9.04% 2021 0.74% 6.91% 3.41% 64.73% 0.04% 2.03% 9.79% 100 years of banking We accomplished something that many organizations only dream about…we turned 100 years old this year. From our humble beginnings in Camas, Washington, Riverview has grown to a branch system of 17 locations in Washington and Oregon. We continuously have provided banking services in Camas for 100 years. We are proud of this moment in time, and we are taking opportunities to talk about our history and anniversary in media, speaking engagements, employee activities, special events, advertising and marketing. Leading up to the anniversary, Riverview: Rebranded the bank – Riverview Bank prepared by rebranding the organization to make sure the bank is ready for the next 100 years. Along with visual changes and adjustments, the name was modified by removing “community”. Community is what we do and it is not necessary in the name. We are now Riverview Bank. Refreshed the branches – All branches received updates for paint, furniture, exterior signage, décor and lighting. Currently, our Battle Ground branch is being remodeled without losing a day of service to our clients. The project is scheduled to be completed in October 2023. Established new mission, vision and values – We went through a process that included internal and external audiences to understand who we are and who we want to be. The vision statement is what we work toward each day when we arrive at work and will be our north star for years to come: To be the preferred place to bank and work in the PNW Created an anniversary year – Created a year-long effort to keep Riverview Bank on the minds of clients, businesses and individuals. Despite the challenges in the financial service industry from rising interest rates and high inflation, Riverview delivered strong financial results with our continued focus on improving shareholder value. This last fiscal year, core operating income (pre-tax pre-provision earnings) was the highest in our 100-year history. Net income totaled $18.1 million compared to $21.8 million in the prior year. As a reminder, the prior year’s net income was elevated as a result of the $4.6 million recapture of loan losses. Our capital levels remained strong with a total risk-based capital ratio of 16.94% and a leverage ratio of 10.47% at March 31, 2023. We continued to prioritize safety and soundness with solid credit quality while maintaining our prudent underwriting standards and diversified loan portfolio. Non-performing assets (excluding SBA loans) remained exceptionally low at 0.02% of total assets. Our core deposits represented 90% of total deposits and uninsured deposits were 18%. Focus areas for Riverview include: Recruitment and retention – Recruiting and retaining a team that represents the brand and demonstrates the values of the company is one of the primary areas of focus. We know that our staff is the reason people continue to bank at Riverview. We hear it all the time. It is essential that new team members care about the same things we do…providing a great banking experience, every time. Knowing our clients – Riverview is home to all sorts of clients. Striking a balance between traditional banking offerings and providing tools for our clients who want digital options to manage their financial lives continues to be a major focus. We want to be a bank where people from both ends of the spectrum are welcome. Communication – Whether we are talking with our shareholders, our clients, staff members or the community, we strive to communicate often and in a straightforward style. That’s what we would expect from a bank. Riverview is committed to sharing information quickly and clearly. In order to provide even better service and communication, Riverview will launch a new website August 2023. While we are proud of 100 years of banking, we cannot rest on our laurels. The world is changing so quickly, and we are ready to adapt where necessary and be a leader whenever possible. Warm regards, For complete financial details and other information, please see the 2023 Riverview Bancorp, Inc. 10-K. Jerry Nies Chairman of the Board of Directors Kevin Lycklama President and Chief Executive Officer $$$$$$$$$$$$ 

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