Riverview Bancorp, Inc. Announces Stock Repurchase Program

Rhea-AI Summary

Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) has announced a stock repurchase program approved by its Board of Directors on September 25, 2024. The program allows the company to repurchase up to $2.0 million of its outstanding common shares in the open market or through private negotiations. The repurchase program will run for 12 months or until completion, whichever comes first.

To facilitate the repurchases, Riverview has authorized management to enter into a Rule 10b5-1 trading plan with Keefe, Bruyette & Woods, Inc. This plan allows for trades during periods when the company might otherwise be restricted due to possession of material non-public information or trading blackout periods.

Riverview Bancorp, headquartered in Vancouver, Washington, is the parent company of Riverview Bank and Riverview Trust Company, with assets of $1.54 billion as of June 30, 2024. The bank operates 17 branches and 3 lending centers, primarily in the Portland-Vancouver area.

Positive

• Authorization of $2.0 million stock repurchase program
• Potential enhancement of shareholder value through stock buybacks
• Implementation of Rule 10b5-1 trading plan for flexible repurchasing
• Strong asset base of $1.54 billion as of June 30, 2024
• Extensive branch network with 17 locations and 3 lending centers

Negative

• Repurchase program to $2.0 million, which may be considered small relative to company size
• No guarantee on the number of shares that will ultimately be repurchased
• Potential reduction in cash reserves due to stock buyback

Insights

Financial Analyst

The announcement of a $2 million stock repurchase program by Riverview Bancorp is a strategic move that could potentially benefit shareholders. With a market cap of $97.9 million, this repurchase represents about 2% of the company's value. Stock buybacks can be seen as a positive signal, indicating that management believes the stock is undervalued.

Key points to consider:

• The program's flexibility, allowing for open market or private transactions, gives management room to optimize timing and pricing.
• The 12-month duration provides a reasonable timeframe for execution without putting undue pressure on the stock price.
• The implementation of a Rule 10b5-1 plan is a prudent move, ensuring compliance and allowing for consistent repurchases.

However, investors should note that the impact may be given the relatively small size of the program. It's important to weigh this against other uses of capital, such as reinvestment in the business or dividend payments, to assess the overall value creation strategy.

Banking Industry Expert

Riverview's decision to initiate a stock repurchase program reflects a broader trend in the banking sector, particularly among smaller regional banks. With $1.54 billion in assets, Riverview is leveraging its strong capital position to potentially enhance shareholder value. This move could be interpreted as a defensive strategy in a challenging banking environment.

Several factors make this noteworthy:

• It signals confidence in the bank's financial health and future prospects.
• The repurchase could help support the stock price and improve key metrics like earnings per share.
• It may indicate growth opportunities in the current market, leading to a focus on capital return.

Investors should consider this in the context of the bank's overall performance, loan portfolio quality and the competitive landscape in the Portland-Vancouver area. The program's modest size suggests a balanced approach to capital management, maintaining flexibility for future opportunities or challenges in the banking sector.

VANCOUVER, Wash., Sept. 26, 2024 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) headquartered in Vancouver, WA, the holding company parent of Riverview Bank, announced that on September 25, 2024, its Board of Directors adopted a stock repurchase program. Under this repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once the repurchase program is effective, the repurchase program will continue until the earlier of the completion of the repurchase or 12 months after the effective date, depending upon market conditions.

“When the opportunity to repurchase common stock results in enhancing shareholder value, we believe capitalizing on this opportunity is a prudent way of deploying excess capital,” said Nicole Sherman, President and Chief Executive Officer.

The Board of Directors of the Company also authorized management to enter into a trading plan with Keefe, Bruyette & Woods, Inc. in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate repurchases of its common stock as part of the stock repurchase program (the “Rule 10b5-1 plan”). The Rule 10b5-1 plan would allow the Company to execute trades during periods when it might otherwise not be permitted to do so because it may be in possession of material non-public information, because of insider trading laws or Company-imposed trading blackout periods. Under the Rule 10b5-1 plan, Keefe, Bruyette & Woods, Inc. would have the authority, subject to the terms and limitations set forth in the Rule 10b5-1 plan, to repurchase shares on the Company’s behalf. There is no guarantee as to the number of shares that the Company may ultimately repurchase. The Company may suspend or discontinue the repurchase program at any time.

About Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.54 billion at June 30, 2024, it is the parent company of the 101-year-old Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

This press release contains statements that the Company believes are “forward-looking statements.” These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make including those described in Item 1A (Risk Factors) of the Company’s Form 10-K for the fiscal year ended March 31, 2024. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known by the Company.

Contact:	Nicole Sherman
	David Lam
	Riverview Bancorp, Inc. 360-693-6650

FAQ

What is the maximum amount Riverview Bancorp (RVSB) can repurchase under the new stock buyback program?

Riverview Bancorp (RVSB) can repurchase up to $2.0 million of its outstanding shares of common stock under the newly announced stock repurchase program.

How long will Riverview Bancorp's (RVSB) stock repurchase program last?

The stock repurchase program will continue until the earlier of the completion of the $2.0 million repurchase or 12 months after the effective date, depending on market conditions.

Why did Riverview Bancorp (RVSB) implement a Rule 10b5-1 trading plan?

Riverview Bancorp (RVSB) implemented a Rule 10b5-1 trading plan to facilitate repurchases during periods when the company might otherwise be restricted from trading due to possession of material non-public information or trading blackout periods.

What was Riverview Bancorp's (RVSB) total asset value as of June 30, 2024?

Riverview Bancorp (RVSB) reported total assets of $1.54 billion as of June 30, 2024.