Riverview Bancorp reports Q1 EPS 5c, consensus 6c

Riverview’s net interest income was $8.8M in the current quarter, compared to $8.6 million in the preceding quarter, and $10.4 million in the first fiscal quarter a year ago. The increase compared to the preceding quarter was driven by organic loan growth and higher interest earning asset yields and lower overall interest expense due to the utilization of the proceeds from the sale of investment securities in the prior quarter to paydown outstanding borrowings. The decrease in net interest income compared to the year ago quarter was driven primarily by an increase in interest expense on deposits due to higher interest rates and interest rate expense related to borrowings. Investment income decreased compared to the preceding quarter due to the strategic investment restructuring that was executed in the prior quarter. Additionally, Riverview sold a portion of its converted Visa A shares during the first quarter which generated $193,000 of income.”Loan growth was strong during the quarter, as we continue to maintain solid credit quality metrics. Further, the balance sheet restructuring that took place during the preceding quarter has already improved our net interest margin and helped stabilize our interest rate risk position,” said Dan Cox. “While we are still operating in a very challenging interest rate environment, we are encouraged as we look forward to the future,” stated Nicole Sherman. “We remain focused on improving our performance metrics, and ultimately increasing profitability in the year ahead.”