RVSB 10-K & 10-Q changes, risk factors and insider trading

Further, global geopolitical tensions, including international conflicts, sanctions, trade disputes, and tariffs, couldare disrupting and may continue to disrupt key industries within our market, such as manufacturing, agriculture, and transportation. Federal tariffs and related trade policies have increased costs and created economic uncertainty for Oregon and Washington businesses, with certain companies facing higher import costs across a wide range of goods and potential adverse impacts in industries, many of which are represented in our loan portfolio. These developments mayhave leadled to increased costs, reduced business investment, supply chain delays, orand reduced demand for credit, adversely affecting our borrowers and, by extension, our asset quality and loan growth. Additionally, geopolitical instability may heighten cybersecurity threats, including from state-sponsored actors, increasing operational risk and reputational exposure.

A significant portion of the loans in our portfolio areis secured by real estate. A downturn in local economic conditions could have a greater impact on our earnings and capital compared to larger financial institutions with more geographically diversified real estate loan portfolios.

Our financial condition and results of operations are affected by credit policies of monetary authorities, particularly the Federal Reserve. Actions by monetary and fiscal authorities, including the Federal Reserve, could lead to inflation, deflation, or other economic phenomena that could adversely affect our financial performance. HigherElevated U.S. tariffs on imported goods couldhave exacerbateexacerbated inflationary pressures by increasing the cost of goods and materials for businesses and consumers. Persistent inflationary pressures, including those associated with tariffs and supply chain disruptions, may contribute to a prolonged elevated interest rate environment, which may delay anticipated rate reductions and prolong pressure on net interest margins for community banks. The interplay between persistent goods inflation and the Federal Reserve’s constrained ability to ease monetary policy creates an uncertain environment that is difficult to plan around, particularly for a community bank whose borrowers are concentrated in trade-sensitive industries. This may particularly affect small to medium-sized businesses, as they are less able to leverage economies of scale to mitigate cost pressures compared to larger businesses. Consequently, our business clients may experience increased financial strain, reducing their ability to repay loans and adversely impacting our results of operations and financial condition. Furthermore, a prolonged period of inflation could cause wages and other costs to us to increase, which could adversely affect our results of operations and financial condition. Virtually all of our assets and liabilities are monetary in nature, and as a result, interest rates tend to have a more significant impact on our performance than general levels of inflation or deflation. However, interest rates do not necessarily move in the same direction or magnitude as the prices of goods and services, creating additional uncertainty in the economic environment.

Bank regulatory agencies also periodically review our ACL and may require an increase in the provision for possible credit losses or the recognition of further loan charge-offs based on their judgment about information available to them at the time of their examination. If charge-offs in future periods exceed the ACL, we may need additional provisions to increase the ACL. Any increases in the ACL will reduce net income and may have a material adverse effect on our financial condition, results of operations, liquidity and capital.

The effects of climate change continue to raise significant concerns about the state of the environment. However, underchanges the current administration,in federal policyregulatory haspriorities and policies have shifted to reduce emphasis on climate change initiatives and environmental regulations. ThisThese includesdevelopments scalingmay backinclude changes in federal involvementparticipation in international agreementsclimate like the Paris Agreementinitiatives and easingmodifications to regulatory pressuresexpectations onapplicable to businesses, including banks,financial to address climate-related risks.institutions. Legislative and regulatory proposals aimedrelating at combatingto climate change may facebe increasedmodified, scrutinydelayed, or reducedimplemented priorityinconsistently underacross thisjurisdictions, administration.increasing compliance uncertainty and operational complexity.

Despite ongoing efforts to enhance our information technology systems and provide employee awareness training, cyber threats remain pervasive, particularly in the financial services industry. Federal banking regulators have expanded their supervisory focus on cybersecurity to include threats from foreign state-sponsored actors and geopolitical adversaries, reflecting an elevated and evolving threat environment. AI -enabled attacks, including sophisticated phishing, deepfakes, and social engineering campaigns targeting financial institutions, continue to evolve in frequency and sophistication. Additionally, federal and state regulatory requirements relating to cybersecurity incident response, client notification obligations, and third-party risk management continue to evolve and may impose additional operational, compliance, and reporting obligations on financial institutions. Failure to comply with these requirements could result in regulatory penalties and reputational damage. We must continuously monitor and fortify our networks and infrastructure to prevent, detect, and address unauthorized access, misuses, computer viruses, and other security risks. While we have not experienced significant breaches, some of our clients may have been affected by third-party breaches, potentially increasing their risks of identity theft and fraud involving their accounts with us.

Our current and future uses of Artificial Intelligence (“AI”) and other emerging technologies may create additional risks.

The increasing adoption of AI in financial services presents significant opportunities but also introduces a range of risks that could impact our operations, regulatory compliance, and client trust. AI introduces model risk, where flawed algorithms or biased data could result in inaccurate credit decisions, compliance violations, or discriminatory outcomes in lending or client service. Cybersecurity threats, such as data breaches, adversarial attacks, and data poisoning, pose significant challenges, particularly as these systems handle large volumes of sensitive client information. Additionally, the opaque nature of some AI models, often referred to as "black-box" systems, raises regulatory compliance concerns, as regulators increasingly require transparency and explainability in AI-driven decision-making. AI also introduces a new attack surface: adversaries are increasingly using AI to generate more convincing phishing messages, synthetic voice and video content (deepfakes), and other tools designed to deceive bank employees or clients. These AI-enabled threats are of particular concern for community banks, which may have fewer dedicated cybersecurity resources than larger institutions. Moreover, our use of AI tools and models supplied by third-party vendors does not reduce our regulatory responsibility for the outcomes those tools produce, and we remain accountable for safe and sound operations regardless of the source of a technology failure or compliance gap.

Mitigating these risks requires a robust governance framework, regularly testing and auditing of AI models, and strong human oversight. Investments in cybersecurity, data privacy protections, and employee training are critical to managing these risks. The regulatory landscape governing AI in financial services remains fragmented. There is currently no comprehensive federal AI governance framework, and numerous states, including Oregon and Washington, have introduced or are actively considering AI-related legislation that could impose additional compliance obligations. We must monitor developments across multiple jurisdictions and adapt our AI governance practices accordingly, which may increase our compliance costs and operational complexity.

Liquidity is essential to our business. We rely on a number of different sources in order to meet our potential liquidity demands. Our primary sources of liquidity are increases in deposit accounts, cash flows from loan payments and our securities portfolio. Borrowings also provide us with a source of funds to meet liquidity demands. An inability to raise funds through deposits, borrowings, the sale of loans or investment securities, or other sources could have a substantial negative effect on our liquidity. Our access to funding sources in amounts adequate to finance our activities or on terms which are acceptable to us could be impaired by factors that affect us specifically, or the financial services industry or economy in general. Factors that could detrimentally impact our access to liquidity sources include a decrease in the level of our business activity as a result of a downturn in the Washington or Oregon markets in which our loans are concentrated, negative operating results, or adverse regulatory action against us. Our ability to borrow could also be impaired by factors that are not specific to us, such as a disruption in the financial markets or negative views and expectations about the prospects for the financial services industry or deterioration in credit markets. Any decline in available funding in amounts adequate to finance our activities on acceptable terms could adversely impact our ability to originate loans, invest in securities, meet our expenses or fulfill obligations such as repaying our borrowings or meeting deposit withdrawwithdrawal demands, any of which could, in turn, have a material adverse effect on our business, financial condition and results of operations. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity” of this Form 10-K.

RegulatoryChanges Changesin Laws, Regulations and Public Expectations Relating to Diversity, Equity and Inclusion (“DEI”) and Environmental, Social and Governance (“ESG”) PracticesMatters May Adversely Impact Our Reputation, Compliance Costs, and Business Operations.

The Company has identified policies that due to the significant level of judgement, estimation and assumptions inherent in those policies are critical to an understanding of the Company’s consolidated financial statements. These policies include our accounting policies related to the methodology for the determination of the ACL, thefair valuationvalue ofaccounting investmentand securitiesmeasurement, and goodwill valuations.valuation. The following is a discussion of the critical accounting estimates involved with those accounting policies.

The ACL is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the economic environment that could result in changes to the amount of the recorded ACL. The provision for credit losses reflects the amount required to maintain the ACL at an appropriate level based upon management’s evaluation of the adequacy of generalcollectively and specificindividually lossevaluated reserves.loan components. Determining the amount of the ACL involves a high degree of judgment. Among the material estimates required to establish the ACL are: overall economic conditions; value of collateral; strength of guarantors; loss exposure at default; the amount and timing of future cash flows for loans that are individually evaluated; determination of loss factors to be applied to the various elements of the portfolio; and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. All of these estimates are susceptible to significant change. Based on the analysis of the ACL, the amount of the ACL is increased by the provision for credit losses and decreased by a recapture of credit losses and are charged against current period earnings.

The ACL is maintained at a level sufficient to provide for expected credit losses based on evaluating known and inherent risks in the loan portfolio and upon our continuing analysis of the factors underlying the quality of the loan portfolio. The ACL is comprised of a general component and a specific component. The general component establishes a reserve rate using historical life-of-loan default rates, current loan portfolio information, economic forecasts, and business cycle data. Statistical analysis determines life-of-loan default and loss rates for the quantitative component, while qualitative factors adjust expected loss rates for current and forecasted conditions. The qualitative factor methodology involves a blend of quantitative analysis and management judgment, reviewed quarterly. The specific component relates to loans that have been individually evaluated because all contractual amounts of principal and interest will not be paid as scheduled. Based on the individual analysis, aan specificindividual reserve may be established. The ACL is based upon factors and trends identified by us at the time financial statements are prepared. Although we use the best information available, future adjustments to the ACL may be necessary due to economic, operating, regulatory and other conditions beyond our control. While we believe the estimates and assumptions used in our determination of the adequacy of the ACL are reasonable, there can be no assurance that such estimates and assumptions will not be proven incorrect in the future, or that the actual amount of future provisions will not exceed the amount of past provisions or that any increased provisions that may be required will not adversely impact our financial condition and results of operations. For additional information see Item 1A. “Risk Factors – Risk Related to Our Lending Activities - Our ACL may prove to be insufficient to absorb losses in our loan portfolio. Future additions to our ACL, as well as charge-offs in excess of reserves, will reduce our earnings,” in this Form 10-K.

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 of 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 value, goodwill at the reporting unit level is not considered impaired and no additional analysis is necessary. If the carrying value of the reporting unit is greater than its fair value, there is an indication that impairment may exist and additional analysis must be performed to measure the amount of impairment loss,loss ifis any.measured Theas the amount of impairment is determined by comparing the implied fair value of the reporting unit’s goodwill towhich the carrying value of the goodwillreporting inunit exceeds its fair value, not to exceed the sametotal manneramount asof ifgoodwill allocated to the reporting unit was being acquired in a business combination. Specifically, the Company would allocate the fair value to all of the assets and liabilities of the reporting unit, including unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. If the implied fair value of goodwill is less than the recorded goodwill, the Company would record an impairment charge for the difference.unit.

The Company performed its annual goodwill impairment test as of October 31, 2024.2025. The goodwill impairment test estimates the fair value of the reporting unit utilizing the allocation of corporate value approach, the income approach, the whole bank transaction approach and the market approach in order to derive an enterprise value of the Company. The allocation of corporate value approach applies the aggregate market value of the Company and divides it among the reporting units. A key assumption in this approach is the control premium applied to the aggregate market value. A control premium is utilized as the value of a company from the perspective of a controlling interest is generally higher than the widely quoted market price per share. The Company used an expected control premium of 30%, which was based on comparable transactional history. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that are discounted using a rate that reflects current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in loans and deposits, estimates of future expected changes in net interest margins and cash expenditures. Assumptions used by the Company in its discounted cash flow model (income approach) included an annual revenue growth rate that approximated 10.0%,8.8%, a net interest margin that approximated 3.3%3.8% and a return on assets that ranged from 0.32%0.60% to 1.14%1.32% (average of 0.78%1.02%). In addition to utilizing the above projections of estimated operating results, key assumptions used to determine the fair value estimate under the income approach were the discount rate of 13.84%14.26% utilized for our cash flow estimates and a terminal value estimated at 1.81.6 times the ending book value of the reporting unit. The Company used a build-up approach in developing the discount rate that included: an assessment of the risk-free interest rate, the rate of return expected from publicly traded stocks, the industry the Company operates in and the size of the Company. The whole bank transaction approach estimates fair value by applying key financial variables in transactions involving acquisitions of similar institutions. In applying the whole bank transaction approach method, the Company identified transactions that occurred during the calendar 20242025 and other relevant published data utilizing a multiple of 1.251.36 times price to book value. The market approach estimates fair value by applying tangible book value multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting unit. In applying the market approach method, the Company selected four publicly traded comparable institutions. After selecting comparable institutions, the Company derived the fair value of the reporting unit by completing a comparative analysis of the relationship between their financial metrics listed above and their market values utilizing a market multiple of 0.901.0 times book value,value and a market multiple of 1.001.1 times tangible book value, due to comparable bank volatility and its belief that earnings multiples do not give meaningful results. The Company calculated a fair value of its reporting unit of $128.0$141.0 million using the corporate value approach, $177.0$199.2 million using the income approach, $186.0$250.0 million using the whole bank transaction approach and $200.0$232.0 million using the market approach, with a final concluded value of $182.0$218.0 million, with ten percent weight given to the corporate value approach and thirty percent weight given to the whole bank transaction, market approach and income approach. The results of the Company’s step one test indicated that the reporting unit’s fair value was greater than its carrying value and therefore no impairment of goodwill exists.

The Company also completed a qualitative assessment of goodwill as of March 31, 2025,2026, 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, or (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 .industry.

Fiscal year 20252026 marked the 101st102nd anniversary for Riverview Bank, which opened for business in 1923. Our primary business strategy is to provide comprehensive banking and related financial services within our primary market area. The Company’s goal is to deliver returns to shareholders by increasing higher-yielding assets (in particular, commercial real estate and commercial business loans), increasing core deposit balances, managing problem assets, reducing expenses, hiring experienced employees with a commercial lending focus and exploring expansion opportunities. The Company seeks to achieve these results by focusing on the following objectives:

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 growincrease 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 March 31, 2025,2026, core branch deposits increased $2.2$25.2 million compared to March 31, 2024,2025, reflecting the Company’s concentrated efforts to retain and grow deposits in light of the strong completioncompetition within its market area. Core branch deposits accounted for 98.1%98.4% of total deposits at March 31, 20252026 compared to 98.0%98.1% at March 31, 2024.2025.

Investment securities totaled $322.5$154.8 million and $372.7$322.5 million at March 31, 20252026 and 2024,2025, respectively. The decrease was primarily due to investment securities sales of $149.3 million in the fourth quarter of fiscal year 2026 in addition to normal pay downs, calls and maturities.maturities, partially offset by purchases of investment securities totaling $25.5 million. The sale of investment securities, while resulting in a pre-tax loss of $11.4 million, was undertaken to reposition the portfolio away from lower-yielding securities and improve the ongoing yield of the investment portfolio. Management estimates the economic loss will be recovered through improved portfolio earnings within approximately 3.5 years, although actual results will depend on market conditions and the yield at which proceeds are redeployed, and there can be no assurance that this estimate will prove accurate. The Company did not make any purchases of investment securities during fiscal 2025, instead prioritizing deployment of available funds into its loan portfolio. For additional information on the Company’s investment securities, see Note 3 of the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K.

Loans receivable, net, totaled $1.08 billion at March 31, 2026, compared to $1.05 billion at March 31, 2025, compared to $1.01 billion at March 31, 2024, an increase of $38.4$30.2 million. The increase was primarily attributable to increases in multi-family loans of $20.7 million, commercial real estate loans of $8.7 million and commercial business loans of $3.5$19.4 million, consistent with the Company’s strategic focus on expanding its commercial lending platform. In addition, other installment loans increased of $12.8$13.1 millionmillion, due to purchased consumermulti-family loans of $15.6$12.2 million duringand theland fiscalloans yearof ended$4.5 2025.million. These increases were partially offset by a decrease in commercial business loans of $13.1 million and real estate construction loans of $7.4$5.1 million reflecting the completion and pay-off of projects originated in prior periods.million.

The Company no longer funds one-to-four family mortgage loans but may occasionally purchase such 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 $43.6 million at March 31, 2026 compared to $35.3 million at March 31, 2025, an increase of $8.3 million. This increase was primarily attributable to consumer loan purchases totaling $21.1 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 by other financial institutions outside the Company’s primary market area and are purchased with servicing retained by the seller. At March 31, 2026, the Company’s purchased SBA loan portfolio was $42.7 million compared to $47.4 million at March 31, 2025 Deposits totaled $1.25 billion at March 31, 2026 compared to $1.23 billion at both March 31, 2025 and 2024.31,2025. While overall deposit levels remained stable, there was a shift in the composition of the deposits. Increases in interest checking of $31.4 million, certificates of depositsdeposit of $36.5$21.2 million and money market accounts of $26.9$6.1 million were partially offset by decreases in non-interest checking accounts of $33.6$22.0 million,million and regular savings accounts of $24.4 million, and interest checking accounts of $4.8$14.8 million. The migration away from lower- or non-interest-bearing accounts toward interest checking, time deposits and money market products is consistent with industry trends, as depositors seek to optimize returns on their funds. The Company had no wholesale-brokered deposits at March 31, 20252026 and 2024.2025. Core branch deposits accounted for 98.1%98.4% of total deposits at March 31, 20252026 compared to 98.0%98.1% at March 31, 2024.2025. The Company remains focused on building and retaining core deposit relationships through targeted client engagement strategies and competitive product offerings, rather than relying on wholesale funding sources.

FHLB advances decreased $11.9$60.3 million to $16.1 million at March 31, 2026 compared to $76.4 million at March 31, 20252025, comparedas the Company used excess liquidity resulting from the sale of investment securities to $88.3pay milliondown borrowings. FHLB advances at March 31, 2024.2026 were comprised entirely of overnight advances. In contrast, FHLB advances at March 31, 2025 were comprised of overnight advances and short-term borrowings of $51.4 million and $25.0 million, respectively. In contrast, all FHLB advances at March 31, 2024 were comprised entirely of overnight advances. While overall FHLB borrowing declined, the Company continued to strategically utilize available FHLB advances, particularly short-ternshort-term advances, to support loan originations and manage liquidity in accordance with its asset/liability objectives.

Shareholders’ equity increaseddecreased $4.4$14.4 million to $145.6 million at March 31, 2026 from $160.0 million at March 31, 2025 from $155.6 million at March 31, 2024.2025. The increasedecrease was mainly attributable to netthe income of $4.9 million recorded during fiscal year 2025 and an improvementincrease in the accumulated other comprehensive incomeloss ofrelated $2.8to million,the which reflected a reductionchange in unrealized holding losses on securities available for sale,securities, net of tax.tax, Theseof increases$6.1 weremillion, partiallya offsetnet byloss cashof dividend$4.3 payments totaling $1.7 million andmillion, the repurchase of 358,631514,009 shares of common stock attotaling a$2.7 totalmillion, costand the payment of $2.0cash dividends totaling $1.7 million.

The following table sets forth the effects of changing rates and volumes on net interest income of the Company for the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025, and the fiscal year ended March 31, 2025 compared to the fiscal year ended March 31, 2024, and the fiscal year ended March 31, 2024 compared to the fiscal year ended March 31, 2023.2024. Information is provided with respect to: (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate); (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume); and (iii) changes in rate/volume (change in rate multiplied by change in volume). 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). The changes noted in the table below include tax equivalent adjustments, and as a result, will not agree to the amounts reflected on the Company’s consolidated statements of income (loss) for the categories that have been adjusted to reflect tax equivalent income.

The Company has adopted a strategy that is designed to maintain or improve the interest rate sensitivity of assets relative to its liabilities. The primary elements of this strategy involve: (i) originating adjustable rate loans; (ii) increasing commercial loans, consumer loans that are adjustable rate and other short-term loans as a portion of total net loans receivable because of their generally shorter terms and higher yields than real estate one-to-four family loans; (iii) matching asset and liability maturities; and (iv) investing in short-term securities. The strategy for liabilities has been to shorten the maturities for both deposits and borrowings. The Company’s longer-term objective is to increase the proportion of non-interest-bearing demand deposits, low interest- bearing demand deposits, money market accounts, and savings deposits relative to certificates of deposit to reduce ourthe Company’s overall cost of funds.funds, however the deposit mix during fiscal year 2026 moved in the opposite direction as depositors sought higher-yielding products, consistent with broader industry trends.

The Company may also invest in short-term to medium-term U.S. Government securities as well as mortgage-backed securities issued or guaranteed by U.S. Government agencies. At March 31, 2025,2026, the combined investment portfolio carriedof at $322.5$154.8 million had an average life of 5.77.1 years.years, reflecting the composition of the repositioned portfolio following the investment securities sales completed during the fourth quarter of fiscal year 2026. Adjustable rate mortgage-backed securities totaled $1.8 million at March 31, 2026 compared to $2.2 million at March 31, 2025 compared to $2.8 million at March 31, 2024.2025. See Item 1. “Business – Investment Activities” for additional information.

The Company must maintain an adequate level of liquidity to ensure the availability of sufficient funds for loan originations, deposit withdrawals and continuing operations, satisfy other financial commitments and take advantage of investment opportunities. DuringDeposits increased $21.9 million during the fiscal year ended March 31, 2025,2026, depositsproviding remained relativelya stable; however, the Bank utilized its funding sourcesbase. primarilyThe toelevated supportlevel loanof commitmentscash and manageliquid depositassets withdrawalsat influencedMarch by31, competitive2026 andreflects pricingsecurities pressures.sale proceeds that had not yet been fully redeployed into loans or investment securities as of year-end. At March 31, 2025,2026 cash and cash equivalents and available for sale investment securities totaled $148.9$271.6 million, or 9.8%18.6% of total assets. Management believes that the Company’s securitysecurities portfolio is of high quality and generally marketable. The level of liquid assets is influenced by 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 March 31, 2025,2026, the Bank had no advances from the FRB and maintained a credit facility with the FRB with available borrowing capacity of $297.3$225.7 million, subject to sufficient collateral. FHLB advances totaled $76.4$16.1 million at the same date, with additional borrowing capacity of $174.0$268.0 million, also subject to adequate collateral and stock investment. At March 31, 2025,2026, 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.

During the fiscal years ended March 31, 2025, deposits increased $649,000 compared to a decrease of $33.5 million for the fiscal year ended March 31, 2024. An additional source of wholesale funding includes brokered certificates of deposit. While the Company has utilized brokered deposits from time to time, the Company historically has not extensively relied on brokered deposits to fund its operations. At March 31, 20252026 and 2024,2025, the Bank had no wholesale brokered deposits. The Bank also participates in the CDARS and ICS deposit products, which allow the Company to accept deposits in excess of the FDIC insurance limit for a depositor and obtain “pass-through” insurance for the total deposit. The Bank’s CDARS and ICS balances were $30.2 million, or 2.4% of total deposits, and $36.0 million, or 2.9% of total deposits, and $39.6 million, or 3.2% of total deposits, at March 31, 20252026 and 2024,2025, respectively. The combination of all the Bank’s funding sources gives the Bank available liquidity of $812.6$968.9 million, or 53.7%66.2% of total assets at March 31, 2025.2026.

The Company incurs capital expenditures on an ongoing basis to expand and improve ourits product offerings, enhance and modernize ourits technology infrastructure, and to introduce new technology-based products to compete effectively in ourits markets. WeThe evaluateCompany evaluates 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 ourits expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for ourits services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations. Based on ourits current capital allocation objectives, during fiscal 20262027 wethe expectCompany expects cash expenditures of approximately $2.1$2.2 million for capital investment in premises and equipment.

Bank holding companies and federally-insuredfederally insured state-chartered banks are required to maintain minimum levels of regulatory capital. At March 31, 2025,2026, Riverview and the Bank were in compliance with all applicable capital requirements. For additional information, see Note 12 of the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K and Item 1. Business – Regulation and Supervision of the Bank.

As a progressive, community-oriented financial services business,company, the Company emphasizes local, personalpersonalized service to residents ofand business within its primary market area. The Company considers Clark, Klickitat and Skamania counties ofin Washington, and Multnomah, Washington and Marion counties ofin OregonOregon, asto comprise its primary market area. The Company is engaged primarily in attracting deposits from the general public and using such 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. The Company’s loans receivable, net, totaled $1.08 billion at both June 30, 2026 and March 31, 2026.

The Company’s strategic plan is centeredfocuses on five key priorities: being the employer of choice, profitable growth, digital experience, data empowerment and client experience.

The Company targets commercial banking clients,clients includingwithin businesses,its professionals,primary andmarket wealth-building individuals,area for both loan originations and deposit growthgrowth, withinincluding itsbusinesses, primary market area. Consistent with its strategic, asset/liability,professionals and capitalwealth-building managementindividuals. In pursuit of these objectives, the Company seeks to increasegrow its loan portfolio in a manner consistent with anits emphasisstrategic onplan, asset/liability management objectives and regulatory capital requirements. This strategy includes growing and maintaining a significant concentration of business banking, commercial business and commercial real estate loans.loans, Thesewhich loansgenerally typically featurecarry adjustable rates, higher yields,yields and shorter terms, andas higherwell as greater credit risk, relative tothan traditional fixed-rate real estate one-to-four family consumer real estate loans.

OurThe Company’s strategic plan also includesemphasizes agrowth focus on increasingin non-interest income, including higher fee income from asset management servicesfees generated through the Trust Company and enhanced deposit-related service charges. The strategic plan is designedintended to supportenhance earnings growth,earnings, reduce interest rate risk,risk and expandprovide thea Company’sbroader range of financial service offeringsservices to clients and the local communities the Company serves. The Company believes it is positioned to attract new clients and increase market share through its network of 17 branch locations, including 10 branches in Clark County, three branches in the Portland metropolitan area and three lending centers.

Fiscal year 20262027 marksmarked the 102nd103rd anniversary for Riverview Bank, which opened for business in 1923. Our primary business strategy is to provide comprehensive banking and related financial services within our primary market area. The Company’s goal is to deliver returns to shareholders by increasing higher-yielding assets (in particular, commercial real estate,estate and commercial business and business banking loans), increasing core deposit balances, managing problem assets, reducing expenses, hiring experienced employees with a commercial lending focus and exploring expansion opportunities. The Company seeks to achieve these results by focusing on the following objectives:

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. In fiscal year 2021, the Company ceased originating one-to-four family residential real estate loans but continues to purchase such loans consistent with its asset/liability management objectives. At DecemberJune 31,30, 2025,2026, commercial and construction loans represented 88.2%88.9% 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.

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 workoutswork-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 2026.2027. 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 usingthrough the use of experienced bankers in these areas and a conservative approach to its lending.

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 small to medium size 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-sellingcross 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 $919.1$952.2 million and $877.9$908.1 million at DecemberJune 31,30, 20252026 and March 31, 2025,2026, 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.

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, Federal Home Loan Bank (“FHLB”) advances, and Federal Reserve Bank of San Francisco (“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 increase 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 DecemberJune 31,30, 2025,2026, core branch deposits remainedincreased unchanged$5.7 frommillion compared to March 31, 2025,2026, accountingreflecting forthe 98.0%Company’s continued focus on retaining and growing deposits in light of the strong competition within its market area. Core branch deposits represented 98.3% of total deposits,deposits at June 30, 2026 compared to 98.1%98.4% at March 31, 2025.2026.

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 pursuingseeking opportunities to deepenbuild clientfurther relationships.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.

Comparison of Financial Condition at DecemberJune 31,30, 20252026 and March 31, 20252026

Investment securities totaled $301.6$175.9 million and $322.5$154.8 million at DecemberJune 31,30, 20252026 and March 31, 2025,2026, respectively. The decreaseincrease was primarily due to purchases of investment securities totaling $24.8 million, partially offset by normal payprincipal downs,repayments, calls and maturities. The Company had no sales of investment securities during the ninethree months ended DecemberJune 31,30, 2025.2026. The Company’s investment securitiesportfolio primarily consistconsists of a combination of securities backed by government agencies (FHLMC, FNMA, SBA or GNMA). At DecemberJune 31,30, 2025,2026, the Company determined that none of its investment securities required an allowance for credit losses (“ACL”).ACL. For additional information onregarding 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.

The Company no longer fundsoriginates one-to-four family mortgage loans but may occasionally purchase such loans consistent with its asset/liability management objectives. Additionally, the Company purchases loans originated by third parties outside the Company’sits primary market area to supplement loan originations and diversify the portfolio. Purchased loans totaled $47.0$40.7 million at DecemberJune 31,30, 20252026 compared to $35.3$43.6 million at March 31, 2025,2026, ana increasedecrease of $11.7$2.9 million. ThisThe increasedecrease was primarily attributable to normal paydowns and payoffs, partially offset by consumer loan purchases totaling $20.8 million, partially offset by normal paydowns and payoffs.$754,000. The Company also purchases the guaranteed portion of SBA loans to helpfurther portfoliodiversify diversification,the loan portfolio, supplement loan originations and generate higher yields than overnight cash or other short-term investments. These SBA loans are originated by other financial institutions outside the Company’s primary market area and are purchased with servicing retained by the seller. At DecemberJune 31,30, 2025,2026, the Company’s purchased SBA loan portfolio wastotaled $44.0$41.6 million compared to $47.4$42.7 million at March 31, 2025.2026, reflecting normal principal paydowns.

Deposits totaled $1.23$1.26 billion at bothJune December30, 31,2026 2025compared andto $1.25 billion at March 31, 2025.2026. While overall deposit levels remained relatively stable, there was a shift in the composition ofduring the deposits.period. Increases in interest checking of $34.2$30.4 million and certificates of deposit accounts of $13.2 million werewas partially offset by decreases in non-interest checking accounts of $24.3 million, money market accounts of $11.2$18.8 million, and regular savings accounts of $10.7$3.5 million, and certificate of deposit accounts of $1.4 million. The migration away from lower- or non-interest-bearing accounts towardto interest checking and time deposits products is consistent with industry trends,trends as depositors seek to optimize returns on their funds. The Company had no wholesale-brokered deposits at DecemberJune 31,30, 20252026 and March 31, 2025.2026. Core branch deposits accounted for 98.0%98.3% of total deposits at DecemberJune 31,30, 20252026, compared to 98.1%98.4% at March 31, 2025.2026. The Company plansintends to continue focusing on growing core deposits and on buildingdeepening client relationships rather than relying on wholesale funding sources.

Shareholders' equity increaseddecreased $4.2 million$381,000 to $164.2$145.3 million at DecemberJune 31,30, 2025,2026, compared to $160.0$145.6 million at March 31, 2025.2026. The increasedecrease was mainlyprimarily attributabledriven toby the repurchase of 308,806 shares of common stock for $1.7 million and cash dividend payments of $401,000, partially offset by net income of $3.7$1.7 million and a decrease induring the accumulated other comprehensive loss related to the change in unrealized holding losses on securities available for sale, net of tax, of $3.3 million for the nine months ended December 31, 2025. These increases were partially offset by the payment of cash dividends of $1.3 million and stock repurchases of $2.0 million.quarter.

The Bank is a state-chartered, federally insured institution subject to various regulatory capital requirements administered by the FDIC and Washington State Department of Financial Institutions, Division of Banks. Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a directmaterial materialadverse effect on the Bank’s operations and financial statements.conditions. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total capital, Tier 1 capital, common equity Tier 1 capital and tierTier I1 capital to risk-weighted assets, core capital to total assets and tangible capital toaverage tangible assets (leverage ratio), as set forth in the table below).below. Management believes the Bank met all capital adequacy requirements to which it was subject as of DecemberJune 31,30, 2025.2026.

As of DecemberJune 31,30, 2025,2026, the Bank was categorized as “well capitalized” under the FDIC’s regulatory framework for prompt corrective action. The Bank’s actual and required minimum capital amounts and ratios were as follows at the dates indicated (dollars in thousands):

In addition to the minimum common equity tier 1 (“CET1”), Tier 1 and total capital ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum capital levels. Failure to maintain the required buffer could result in limitations on the Bank’s ability to pay dividends, repurchase shares, and pay discretionary bonuses, based on specified percentages of eligible retained income. As of DecemberJune 31,30, 2025,2026, the Bank’s CET1 capital exceeded the required capital conservation buffer atby an amount greatermore than 2.5%.the required 2.5% of risk-weighted assets.

For a bank holding company, such as the Company, the capital guidelines apply on a bank only basis. The Federal Reserve expects the holding company’s subsidiary banks to be well capitalized under the prompt corrective action regulations. If the Company was subject to regulatory guidelines for bank holding companies at DecemberJune 31,30, 2025,2026, the Company would have exceeded all regulatory capital requirements.

Liquidity is essential to the operation of our business. The objectives of the Bank’s liquidity management are to maintain amplesufficient cash flows to meet obligations for depositor withdrawals, to fund the borrowing needs of loan clients, and to fund ongoing operations. Core relationship deposits are the primary source of the Bank’s liquidity. As such, the Bank focuses on deposit relationships with local consumer and business clients who maintain multiple accounts and services at the Bank.

Liquidity management is both a short and long-term responsibility of the Company'sCompany’s management. The Company adjusts its investments in liquid assets based upon management'smanagement’s assessment of (i) expected loan demand, (ii) projected loan sales, (iii) expected deposit flows, (iv) yields available on interest-bearing deposits and (v) its asset/liability management program objectives. Excess liquidity is invested generally invested in interest-bearing overnight deposits and other short-term government and agency obligations. If the Company requires funds beyond those provided through its abilitynormal tooperating generate them internally,activities, it has additional diversified and reliable sources of funds with the FHLB, the FRB and other wholesale facilities. These sources of funds may be used on a long or short-term basis to compensate for a reduction in other sources of funds or on a long-term basis to support lending activities.

The Company'sCompany’s primary sources of funds are client deposits, proceeds from principal and interest payments on loans, securities,proceeds from the sale of loans, maturing securities, FHLB advances and FRB borrowings. While maturities and scheduled amortization of loans and securities are a predictable source of funds, deposit flows and prepayment of mortgage loans and mortgage-backed securities are greatly influenced by general interest rates, economic conditions and competition. Management believes that its focus on core relationship deposits coupled with access to borrowingsborrowing through reliable counterparties provides reasonable and prudent assurance that ample liquidity is available. However, depositor or counterparty behavior could change in response to competition, economic or market situations or other unforeseen circumstances, which could have liquidity implications that may require different strategic or operational actions.

The Company must maintain an adequate level of liquidity to ensure the availability of sufficient funds for loan originations, deposit withdrawals and continuing operations, satisfy other financial commitments and take advantage of investment opportunities. During the three months ended June 30, 2026, deposits increased $7.4 million, providing a stable funding base. The Bank uses its funding sources primarily to support lending activities, manage deposit withdrawals, fund investment activities, and meet ongoing operational needs. At DecemberJune 31,30, 2025,2026, cash and cash equivalents and available for sale investment securities totaled $147.1$278.1 million, or 9.73%18.9% of total assets. Management believes that the Company’s securitiessecurity portfolio is of high quality and therefore readilygenerally marketable. The levelslevel of theseliquid assets dependis oninfluenced by 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,available to meet potential funding requirements, including FRB borrowings and FHLB advances. At DecemberJune 31,30, 2025,2026, the Bank had no advances outstanding withfrom the FRB and maintained a credit facility with anthe FRB with available borrowing capacity of $288.3$219.3 million, subject to sufficient collateral. At December 31, 2025, the Bank had $60.5 million in outstanding FHLB advances andtotaled an$16.1 million at the same date, with additional borrowing capacity of $227.2$268.8 million, also subject to sufficientadequate collateral and stock investment. At DecemberJune 31,30, 2025,2026, the Bank had sufficient unpledged collateral to allow it to utilize its available borrowing capacity from both the FRB and the FHLB. Borrowing capacity may, however, fluctuate based on acceptabilitythe quality and risk rating of pledged loan collateral, and counterparties couldmay adjust discount rates applied to such collateral at their discretion.

An additional source of wholesale funding includes brokered certificates of deposit. While the Company has utilizedused brokered deposits from time to time, the Company historically it has not extensively relied on brokered deposits to fund its operations. At DecemberJune 31,30, 20252026 and March 31, 2025,2026, 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 depositorsa whiledepositor obtainingand obtain “pass-through” insurance for the total deposits. The Bank’s CDARS and ICS balances were $33.1$27.6 million, or 2.68%2.19% of total deposits,deposits and $36.0$30.2 million, or 2.92%2.41% of total deposits, at DecemberJune 31,30, 20252026 and March 31, 2025,2026, respectively. The combination of all the Bank’s funding sources gives the Bank available liquidity of $858.3$969.7 million, or 56.75%65.92% of total assets at DecemberJune 31,30, 2025.2026.

At DecemberJune 31,30, 2025,2026, the Company had total commitments of $152.8$127.7 million, which includedincludes commitments to extend credit of $34.0$6.9 million, unused lines of credit oftotaling $101.2$104.1 million, undisbursed real estate construction loans oftotaling $16.0$15.1 million, and standby letters of credit oftotaling $1.6 million. For further information regarding the Company’s off-balance sheet arrangements and other contractual obligations, see Note 13 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q. The Company anticipates havingthat it will have sufficient funds available to meet thesecurrent loan commitments. Certificates of deposit that are scheduled to mature withinin less than one year from DecemberJune 31,30, 20252026 totaled $237.1$244.1 million,million. and historically,Historically, the Bank has retainedbeen able to retain a significant portionamount of maturingits deposits.deposits Offsettingas they mature. Partially offsetting these cash outflows are scheduled loan maturities of loanless and investment securities of $71.8 million and $13.5 million, respectively, withinthan one year oftotaling December$69.1 31,million 2025.at June 30, 2026.

The Company incurs capital expenditures on an ongoing basis to expand and improve its product offerings, enhance and modernize its technology infrastructure, and to introduce new technology-based products to compete effectively.effectively Wein evaluateits markets. The Company evaluates 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 ourits expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for ourits services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations. Based on ourits current capital allocation objectives, during the remainder of fiscal 20262027 wethe expectCompany expects cash expenditures of approximately $431,000$2.0 million for capital investment in premises and equipment.

Riverview Bancorp, Inc.,Riverview, as a separate legal entity from the Bank, must provide for its own liquidity. Sources of capital and liquidity for Riverview Bancorp, Inc. include dividendsdistributions from the Bank,Bank as well asand 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.notice. 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. AsThe of December 31, 2025, thecurrent quarterly common stock dividend rate wasis $0.02 per share, as approved by the Board of Directors.Directors, Managementwhich management believes thisis a dividend rate appropriatelyper balancesshare which enables the Company to balance its multiple objectives of managing and investing in the Bank and returning a substantial portion of the Company’s objectives of supporting investment in the Bank, while returning capitalcash to its shareholders. Assuming continued payment during fiscal 20262027 at this rate of $0.02 per share, average total dividends paid each quarter would be approximately $414,000$403,000 based on the number of the Company’s outstanding shares asat ofJune December30, 31, 2025.2026. At DecemberJune 31,30, 2025,2026, Riverview Bancorp, Inc. had $4.2$2.9 million in cash to meet its liquidity needs.

Nonperforming assets were $1.1$8.7 million or 0.07%0.59% of total assets at DecemberJune 31,30, 2025,2026, compared to $155,000$7.8 million or 0.01%0.53% of total assets at March 31, 2025.2026. The increase in nonperforming assets was primarily due to an increase in nonaccrual commercial real estate loans during the quarter. The Company had net charge-offsrecoveries totaling $193,000$88,000 for the ninethree months ended DecemberJune 31,30, 2025,2026, compared to $90,000net charge-offs of $1.3 million during the fiscal 2025.year ended June 30, 2026. The Company had no otherone real estate owned orproperty foreclosedwith assetsa carrying value of zero at Decemberboth 31,June 202530, or2026 and March 31, 2025.2026.

The ACL for loans was $15.3 million or 1.41%1.40% of total loans at DecemberJune 31,30, 2025,2026, and $15.4$15.2 million or 1.45%1.40% of total loans at March 31, 2025.2026. For the nine months ended December 31, 2025 and 2024, theThe Company recordeddid not record a provision for credit losses offor $100,000.the three months ended June 30, 2026 or June 30, 2025. At DecemberJune 31,30, 2025,2026, the ACLCompany’s providedallowance coveragefor ofcredit morelosses thanequaled 1,300%175% of nonperforming loans, compared to approximately 9,900%196% at March 31, 2025.2026. The general valuation allowance on pooled, orfor collectively evaluated,evaluated loans was 1.41% at Decemberboth 31,June 202530, 2026 and 1.45% at March 31, 2025.2026.

Management considers the ACL for loans and unfunded loan commitments to be adequate at DecemberJune 31,30, 20252026 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,loans, see Note 6 of the Notes to Consolidated Financial Statements contained in Item 1 of this Form 10-Q.

At DecemberJune 31,30, 2025,2026, loans delinquent 30-89 days totaled $3.5$15.8 millionmillion, or 0.33%1.45% of total loans, downcompared fromto $4.1$6.5 millionmillion, or 0.38%0.60% of total loansloans, at March 31, 2025.2026. The decreaseincrease was primarily attributabledriven by three CRE loans totaling $11.4 million, the largest of which had an outstanding balance of $6.5 million. The Company continues to themonitor decrease in fully guaranteed SBA and USDA loans. These loans, while delinquent are classified as pass ratedthese loans and arework excludedwith fromthe nonperformingborrowers to address repayment and ACLcredit-related calculations due to the full government guarantee and the expectation that all contractual principal and interest will be collected.matters. The Company had no accruing loans that were 90 days or more delinquent at DecemberJune 31,30, 20252026 and March 31, 2025.2026.

At DecemberJune 31,30, 2025,2026, CRE loans represented the largest portion of the loan portfolio at 55.9%56.0% of total loans and commercial business loans represented 20.6%20.4% of total loans.

The Company performed its annual goodwill impairment test as of October 31, 2025, and determined that no impairment of goodwill existed. The Company also completed a qualitative assessment of goodwill as of DecemberJune 31,30, 2025,2026, 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.

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, or (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.industry. 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.

Comparison of Operating Results for the Three and Nine Months Ended DecemberJune 31,30, 20252026 and 20242025

Net Income. Net income was $1.4$1.7 million, or $0.07$0.08 per diluted share, for the three months ended DecemberJune 31,30, 2025,2026, compared to $1.2 million, or $0.06 per diluted share, for the same period in the prior year. NetThe income for the nine months ended December 31, 2025 and 2024 was $3.7 million, or $0.18 per diluted share, and $3.8 million, or $0.18 per diluted share, respectively. For the three months ended December 31, 2025,Company’s net income increased primarily as a result of an increase in net interest income, partially offset by an increase in non-interest expense. For the ninethree months ended DecemberJune 31,30, 2025,2026, netnon-interest income wasincreased relatively unchangedmodestly compared to the prior year period, aspartially the increase in net interest income was offset byoffsetting higher operating expenses.

Net interest income for the three and nine months ended DecemberJune 31,30, 2025,2026 wasincreased $10.6$1.6 million andto $30.2 million, respectively, representing an increase of $1.2 and $3.0$11.4 million compared to $9.8 million for the same periodsperiod in 2024.the Theseprior increasesyear. wereThe increase was primarily dueattributable to increasedhigher interest and feesfee income on loans receivable and a decrease inlower interest expense on borrowings, partlypartially offset by increased interest expense on deposits. Net interest margin for the three and nine months ended December 31, 2025 was 2.96% and 2.83%, respectively, comparedincreased to 2.60% and 2.51%3.34% for the three andmonths nineended June 30, 2026, from 2.78% for the three months ended DecemberJune 31,30, 2024,2025. respectively.The improvement in net interest margin was driven by growth in interest income, reflecting increases in average loan balances and interest-earning deposits held in other banks, as well as lower funding costs resulting from reduced reliance on FHLB advances.

Interest and Dividend Income. Interest and dividend income for the three and nine months ended DecemberJune 31,30, 20252026 wasincreased $16.0$993,000 to $16.4 million and $46.7 million, compared to $15.1 million and $44.5$15.4 million for the same periodsperiod in the prior year, respectively.year. The increasesincrease werewas dueprimarily attributable to increaseshigher interest income on loans receivable and interest earning deposits in other banks of $889,000 and $541,000, respectively, partially offset by a $437,000 decrease in interest income on investment securities. The increase in interest income on loans receivable ofwas $1.1 million and $3.4 million, respectively, when compared to the same periods in 2024,primarily due to higher average balanceloan of net loansbalances and improvedyields, yields.while the increase in interest income on interest-earning deposits in other banks was primarily due to higher average balances.

Interest earnedincome on investment securities decreased $252,000 and $1.0 million$437,000 for the three and nine months ended DecemberJune 31,30, 2025,2026, compared to the same periodsperiod in the prior year, asdue to a result of decreasesdecline in both the average balance of andinvestment yieldsecurities, earnedpartially offset by higher average yields on the investment securities.portfolio. The average balance of investment securities decreased $45.9 million and $50.0$146.7 million to $318.3 million and $328.1$190.5 million for the three and nine months ended DecemberJune 31,30, 2025,2026, comparedfrom to $364.2 million and $377.9$337.2 million for the same periodsperiod in the prior year, respectively.year. The decrease in the average balance of investment securities was primarily attributable to securities sales and repositioning activities undertaken as part of the Company’s balance sheet optimization strategy completed during the fourth quarter of fiscal 2026, as well as normal paydownportfolio activities.paydowns. TheDespite the lower average balance, the average yield on investment securities wasincreased 1.77%to and 1.88%2.75% for the three and nine months ended DecemberJune 31,30, 2025,2026, comparedfrom to 1.82% and 2.00%2.09% for the same periodsperiod in the prior year, consistentreflecting withhigher yields on securities purchased last quarter of fiscal 2026 and during the lowerfirst reinvestmentquarter ratesof andfiscal reduced2027 balances.for a total of $49.5 million.

Interest Expense. Interest expense totaleddecreased $5.4$562,000 millionto and $16.5$5.0 million for the three and nine months ended DecemberJune 31,30, 2025,2026, comparedfrom to $5.7 million and $17.3$5.5 million for the three and nine months ended DecemberJune 31,30, 2024, respectively.2025. The decreasesdecrease werewas primarily dueattributable to decreases inlower interest expense on FHLB advances, relateddriven toby both decreases in thelower average balance of FHLB advancesbalances and lower rates, partially offset by increases inhigher interest expense on deposits.