Riverview Bancorp shares jump on 75% earnings beat, margin expansion
Net interest margin expands 36 basis points to 2.96% as Pacific Northwest lender delivers strong Q3 results
Riverview Bancorp shares rose sharply on Tuesday after the Pacific Northwest community bank reported third-quarter earnings that easily topped analyst expectations, driven by a significant expansion in net interest margin and robust loan growth.
The Vancouver, Washington-based lender reported diluted earnings per share of $0.07 for its fiscal third quarter ended December 31, 2025, surpassing the Zacks Consensus Estimate of $0.04 by 75%. Net income reached $1.4 million for the quarter.
The most notable improvement came in net interest margin, which expanded to 2.96% from 2.60% in the year-ago period—a 36 basis-point improvement—and 20 basis points above the prior quarter's 2.76%. Net interest income climbed to $10.5 million from $9.4 million in the same quarter last year.
"Our three-year strategic plan is gaining momentum with progress in sustainable growth, digital innovation, and data-driven personalization," said Nicole Sherman, President and Chief Executive Officer. She added that the company is focused on "delivering shareholder value through stronger asset returns, new revenue streams, and optimized operations."
Riverview's loan portfolio grew to $1.07 billion at quarter-end, an increase of $15.1 million during the quarter and $40.1 million compared with the prior year. New loan originations totaled $36.7 million, while the company reported a loan pipeline of $77.2 million, suggesting continued momentum.
The bank maintained exceptional credit quality, with non-performing assets at just 0.07% of total assets. Non-performing loans totaled $1.1 million, representing 0.10% of total loans. The allowance for credit losses stood at $15.3 million, or 1.41% of total loans.
David Lam, Executive Vice President and Chief Financial Officer, highlighted the margin expansion despite recent rate cuts, noting that higher asset yields and lower cost of funds drove the improvement. He acknowledged that operating costs increased year-over-year due to strategic expansion of business banking teams and filling key positions, but expects costs to stabilize in coming quarters.
The efficiency ratio improved to 86.9% for the quarter, while tangible book value per share increased to $6.62 from $6.51 in the prior quarter. With shares currently trading at approximately 0.65 times book value and an analyst price target of $7.00, some investors see potential upside.
The company's focus on commercial and industrial (C&I) relationship clients is showing results, according to Mike Sventek, Executive Vice President and Chief Lending Officer. He noted that "expanded loan yields" came from favorable yield curve movements, allowing for more attractive pricing on new originations.
Riverview Bancorp, with a market capitalization of approximately $106 million, operates as the parent company of Riverview Community Bank, serving small to medium-sized businesses and individual clients throughout the Pacific Northwest. The stock is up roughly 50% from its 52-week low of $4.70, though it remains below its 52-week high of $6.52 reached earlier this year.
Robert Benke, Executive Vice President and Chief Credit Officer, emphasized the bank's "disciplined approach to monitoring credit quality" amid ongoing interest rate uncertainty, noting that reserves are being maintained to reflect current market conditions.