Riverview Bancorp Q1 net income rises on higher margin
RVSB•Outlook
Riverview expects to reinvest proceeds into loans, higher-yielding bonds, or paying down borrowings.
The company said local economic strength and redevelopment projects support growth opportunities. Riverview also said investments in technology and talent are positioning it for stronger future performance.
Result drivers and expenses
Riverview said higher net interest income and margin were driven by reclassifying and selling lower-yielding securities and reinvesting in higher-yielding assets.
The company also said higher origination rates on new loans and loan repricing contributed to increased net interest income.
Non-interest expense increased due to continued investments in technology and personnel, according to COO Dan Cox.
Key details and analyst coverage
| Metric | Actual |
|---|---|
| Q1 net income | $1.70 million |
| Q1 net interest margin | 3.34% |
The one available analyst rating on the shares is buy. The average consensus recommendation for the banks peer group is hold.
The stock recently traded at 16 times the next 12-month earnings, versus a P/E of 16 three months ago.
