Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2024 | Aug. 08, 2024 | |
Document and Entity Information: | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-22957 | |
Entity Registrant Name | RIVERVIEW BANCORP, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1838969 | |
Entity Address, Address Line One | 900 Washington St. | |
Entity Address, Address Line Two | Ste. 900 | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98660 | |
City Area Code | 360 | |
Local Phone Number | 693-6650 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | RVSB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,096,968 | |
Entity Central Index Key | 0001041368 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
ASSETS | ||
Cash and cash equivalents (including interest earning deposits in other banks of $13,526 and $12,164) | $ 27,804 | $ 23,642 |
Investment securities: | ||
Available for sale, at estimated fair value | 137,371 | 143,196 |
Held to maturity, at amortized cost (estimated fair value of $192,026 and $195,519) | 225,817 | 229,510 |
Loans receivable (net of allowance for credit losses of $15,364 and $15,364) | 1,029,701 | 1,008,649 |
Prepaid expenses and other assets | 14,170 | 14,469 |
Accrued interest receivable | 4,798 | 4,415 |
Federal Home Loan Bank ("FHLB") stock, at cost | 6,061 | 4,927 |
Premises and equipment, net | 21,290 | 21,718 |
Financing lease right-of-use ("ROU") assets | 1,182 | 1,202 |
Deferred income taxes, net | 9,857 | 9,778 |
Goodwill | 27,076 | 27,076 |
Core deposit intangible ("CDI"), net | 246 | 271 |
Bank owned life insurance ("BOLI") | 32,887 | 32,676 |
TOTAL ASSETS | 1,538,260 | 1,521,529 |
LIABILITIES: | ||
Deposits | 1,219,679 | 1,231,679 |
Accrued expenses and other liabilities | 19,441 | 16,205 |
Advance payments by borrowers for taxes and insurance | 551 | 581 |
FHLB advances | 113,504 | 88,304 |
Junior subordinated debentures | 27,026 | 27,004 |
Finance lease liability | 2,151 | 2,168 |
Total liabilities | 1,382,352 | 1,365,941 |
COMMITMENTS AND CONTINGENCIES (See Note 13) | ||
SHAREHOLDERS' EQUITY: | ||
Serial preferred stock, $.01 par value; 250,000 shares authorized; issued and outstanding: none | ||
Common stock, $.01 par value; 50,000,000 shares authorized June 30, 2024 - 21,111,043 shares issued and outstanding March 31, 2024 - 21,111,043 shares issued and outstanding | 211 | 211 |
Additional paid-in capital | 55,031 | 55,005 |
Retained earnings | 117,043 | 116,499 |
Accumulated other comprehensive loss | (16,377) | (16,127) |
Total shareholders' equity | 155,908 | 155,588 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,538,260 | $ 1,521,529 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
CONSOLIDATED BALANCE SHEETS | ||
Interest-earning accounts included in cash (in dollars) | $ 13,526 | $ 12,164 |
Fair value of mortgage-backed securities held to maturity (in dollars) | 192,026 | 195,519 |
Allowance for credit losses (in dollars) | $ 15,364 | $ 15,364 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized | 250,000 | 250,000 |
Serial preferred stock, shares issued | 0 | 0 |
Serial preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,111,043 | 21,111,043 |
Common stock, shares outstanding | 21,111,043 | 21,111,043 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
INTEREST AND DIVIDEND INCOME: | ||
Interest and fees on loans receivable | $ 12,052 | $ 11,210 |
Interest on investment securities - taxable | 1,972 | 2,334 |
Interest on investment securities - nontaxable | 65 | 66 |
Other interest and dividends | 310 | 347 |
Total interest and dividend income | 14,399 | 13,957 |
INTEREST EXPENSE: | ||
Interest on deposits | 3,447 | 1,373 |
Interest on borrowings | 2,131 | 2,225 |
Total interest expense | 5,578 | 3,598 |
Net interest income | 8,821 | 10,359 |
Net interest income after provision for credit losses | 8,821 | 10,359 |
NON-INTEREST INCOME: | ||
Income from BOLI | 211 | 200 |
Other, net | 58 | 104 |
Total non-interest income, net | 3,367 | 3,285 |
NON-INTEREST EXPENSE: | ||
Salaries and employee benefits | 6,388 | 6,043 |
Occupancy and depreciation | 1,895 | 1,583 |
Data processing | 764 | 674 |
Amortization of CDI | 25 | 27 |
Advertising and marketing | 310 | 313 |
FDIC insurance premium | 178 | 177 |
State and local taxes | 216 | 226 |
Telecommunications | 47 | 53 |
Professional fees | 490 | 343 |
Other | 656 | 539 |
Total non-interest expense | 10,969 | 9,978 |
INCOME BEFORE INCOME TAXES | 1,219 | 3,666 |
PROVISION FOR INCOME TAXES | 253 | 823 |
NET INCOME | $ 966 | $ 2,843 |
Earnings per common share: | ||
Basic | $ 0.05 | $ 0.13 |
Diluted | $ 0.05 | $ 0.13 |
Weighted average number of common shares outstanding: | ||
Basic | 21,111,043 | 21,136,097 |
Diluted | 21,111,043 | 21,141,184 |
Fees and service charges | ||
NON-INTEREST INCOME: | ||
Non-interest income | $ 1,540 | $ 1,600 |
Asset management fees. | ||
NON-INTEREST INCOME: | ||
Non-interest income | $ 1,558 | $ 1,381 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income (Loss) | $ 966 | $ 2,843 |
Other comprehensive loss: | ||
Net unrealized holding losses from available for sale investment securities arising during the period, net of tax benefit of $79 and $695, respectively | (250) | (2,202) |
Total comprehensive income, net | $ 716 | $ 641 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Tax effect of unrealized holding gains (losses) from available for sale securities | $ 79 | $ 695 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings Adjustment | Retained Earnings | Accumulated Other Comprehensive Loss | Adjustment | Total |
Balance at Mar. 31, 2023 | $ 212 | $ 55,511 | $ 117,826 | $ (18,310) | $ 155,239 | ||
Balance (in shares) at Mar. 31, 2023 | 21,221,960 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,843 | 2,843 | |||||
Cash dividends on common stock | (1,265) | (1,265) | |||||
Exercise of stock options | 19 | $ 19 | |||||
Exercise of stock options (in shares) | 6,799 | 6,799 | |||||
Stock repurchased | $ (1) | (576) | $ (577) | ||||
Stock repurchased (in shares) | (109,162) | ||||||
Restricted stock forfeited (in shares) | (3,678) | ||||||
Stock-based compensation, net | 62 | 62 | |||||
Other comprehensive loss, net | (2,202) | (2,202) | |||||
Balance at Jun. 30, 2023 | $ 211 | 55,016 | $ (53) | 119,351 | (20,512) | $ (53) | 154,066 |
Balance (in shares) at Jun. 30, 2023 | 21,115,919 | ||||||
Balance at Mar. 31, 2024 | $ 211 | 55,005 | 116,499 | (16,127) | 155,588 | ||
Balance (in shares) at Mar. 31, 2024 | 21,111,043 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 966 | 966 | |||||
Cash dividends on common stock | (422) | (422) | |||||
Stock-based compensation, net | 26 | 26 | |||||
Other comprehensive loss, net | (250) | (250) | |||||
Balance at Jun. 30, 2024 | $ 211 | $ 55,031 | $ 117,043 | $ (16,377) | $ 155,908 | ||
Balance (in shares) at Jun. 30, 2024 | 21,111,043 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Dividend per share (in dollars per share) | $ 0.02 | $ 0.06 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 966 | $ 2,843 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 779 | 624 |
Purchased loans amortization, net | 19 | 29 |
Stock-based compensation expense | 26 | 62 |
Decrease in deferred loan origination fees, net of amortization | (66) | (59) |
Income from BOLI | (211) | (200) |
Changes in certain other assets and liabilities: | ||
Prepaid expenses and other assets | 207 | 1,845 |
Accrued interest receivable | (383) | 25 |
Accrued expenses and other liabilities | 4,099 | 3,901 |
Net cash provided by operating activities | 5,436 | 9,070 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Loan (originations) repayments, net | (15,452) | 10,361 |
Purchases of loans receivable | (5,553) | (5,891) |
Principal repayments on investment securities available for sale | 2,216 | 4,316 |
Proceeds from calls and maturities of investment securities available for sale | 3,000 | |
Principal repayments on investment securities held to maturity | 3,594 | 3,879 |
Proceeds from sale of shares in trading asset - VISA stock | 193 | |
Purchases of premises and equipment and capitalized software | (110) | (2,113) |
Redemption of certificates of deposit held for investment | 249 | |
Purchase of FHLB stock, net | (1,134) | (493) |
Proceeds from sales of premises and equipment | 86 | |
Net cash (used in) provided by investing activities | (13,160) | 10,308 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net decrease in deposits | (12,000) | (21,895) |
Dividends paid | (1,267) | (1,272) |
Proceeds from borrowings | 151,800 | 157,945 |
Repayment of borrowings | (126,600) | (145,630) |
Net decrease in advance payments by borrowers for taxes and insurance | (30) | (51) |
Principal payments on finance lease liability | (17) | (14) |
Proceeds from exercise of stock options | 19 | |
Repurchase of common stock | (577) | |
Net cash provided by (used in) financing activities | 11,886 | (11,475) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,162 | 7,903 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 23,642 | 22,044 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 27,804 | 29,947 |
Cash paid during the period for: | ||
Interest | 5,094 | 3,393 |
Income taxes | 24 | |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Dividends declared and accrued in other liabilities | 422 | 1,267 |
Net unrealized holding losses from available for sale investment securities | (329) | (2,897) |
Income tax effect related to other comprehensive loss | 79 | 695 |
Adjustment to retained earnings, net of deferred tax; - adoption of ASU 2016-13 | $ (53) | |
Conversion of shares in trading asset - VISA stock | $ 190 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2024 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Quarterly Reports on Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of financial condition, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”). However, all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim unaudited consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Riverview Bancorp, Inc. Annual Report on Form 10-K for the year ended March 31, 2024 (“2024 Form 10-K”). The unaudited consolidated results of operations for the three months ended June 30, 2024 are not necessarily indicative of the results which may be expected for the entire fiscal year ending March 31, 2025. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period presentation; such reclassifications had no effect on previously reported net income or total shareholders’ equity. |
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION | 3 Months Ended |
Jun. 30, 2024 | |
PRINCIPLES OF CONSOLIDATION | |
PRINCIPLES OF CONSOLIDATION | 2. PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of Riverview Bancorp, Inc.; its wholly-owned subsidiary, Riverview Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries, Riverview Services, Inc. and Riverview Trust Company (the “Trust Company”) (collectively referred to as the “Company”). All inter-company transactions and balances have been eliminated in consolidation. |
STOCK PLANS AND STOCK-BASED COM
STOCK PLANS AND STOCK-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2024 | |
STOCK PLANS AND STOCK-BASED COMPENSATION | |
STOCK PLANS AND STOCK-BASED COMPENSATION | 3. STOCK PLANS AND STOCK-BASED COMPENSATION Stock Option Plans - In July 2003, shareholders of the Company approved the adoption of the 2003 Stock Option Plan (“2003 Plan”). The 2003 Plan was effective in July 2003 and expired in July 2013. Accordingly, no further option awards may be granted under the 2003 Plan. Further, no options granted under the 2003 plan remain outstanding as of June 30, 2024, with all such awards having been either previously exercised or forfeited. Each option granted under the 2003 Plan had an exercise price equal to the fair value of the Company’s common stock on the date of the grant, a maximum term of ten years and a vesting period from zero to five years . In July 2017, the shareholders of the Company approved the Riverview Bancorp, Inc. 2017 Equity Incentive Plan (“2017 Plan”). The 2017 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock and restricted stock units. The Company reserved 1,800,000 shares of its common stock for issuance under the 2017 Plan. At June 30, 2024, there were 1,532,003 shares available for grant under the 2017 Plan. The 2003 Plan and the 2017 Plan are collectively referred to as “the Stock Option Plans”. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes stock option valuation model. The fair value of all awards is amortized on a straight-line basis over the requisite service periods, which are generally the vesting periods. The expected life of options granted represents the period of time that they are expected to be outstanding. The expected life is determined based on historical experience with similar options, considering the contractual terms and vesting schedules. Expected volatility is estimated at the date of grant based on the historical volatility of the Company's common stock. Expected dividends are based on dividend trends and the market value of the Company's common stock at the time of grant. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted under the 2017 Stock Option Plan during the three months ended June 30, 2024 and 2023. As of June 30, 2024, all outstanding stock options were fully vested and there was no remaining unrecognized compensation expense related to stock options granted under the Stock Option Plans. There was no stock-based compensation expense related to stock options for the three months ended June 30, 2024 and 2023 under the Stock Option Plans. There was no activity related to stock options for the three months ended June 30, 2024. The following table presents the activity related to stock options under the Stock Option Plans for the three months ended June 30, 2023: Three Months Ended June 30, 2023 Weighted Average Number of Exercise Shares Price Balance, beginning of period 14,310 $ 2.78 Options exercised (6,799) 2.78 Balance, end of period 7,511 $ 2.78 There were no stock options outstanding as of June 30, 2024. The following table presents information on stock options outstanding, less estimated forfeitures, as of June 30, 2023: 2023 Stock options fully vested and expected to vest: Number 7,511 Weighted average exercise price $ 2.78 Aggregate intrinsic value (1) $ 17,000 Weighted average contractual term of options (years) 0.04 Stock options fully vested and currently exercisable: Number 7,511 Weighted average exercise price $ 2.78 Aggregate intrinsic value (1) $ 17,000 Weighted average contractual term of options (years) 0.04 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price) that would have been received by the option holders had all option holders exercised. This amount changes based on changes in the market value of the Company’s stock. There was no intrinsic value of stock options exercised for the three months ended June 30, 2024. The total intrinsic value of stock options exercised was $14,000 for the three months ended June 30, 2023, respectively, under the Stock Option Plans. The Company may grant restricted stock pursuant to the 2017 Plan of which vesting can either be time based or performance based. Performance based awards are subject to attaining certain performance metrics and all, or a portion of, the performance based awards can subsequently be cancelled for not attaining the predetermined performance metrics. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the date of grant. The related stock-based compensation expense is recorded over the requisite service period. Stock-based compensation related to restricted stock grants was $26,000 and $62,000 for the three months ended June 30, 2024 and 2023, respectively. The unrecognized stock-based compensation related to restricted stock was $145,000 and $ 354,000 at June 30, 2024 and 2023, respectively. The weighted average vesting period for the restricted stock was 1.11 years and 1.04 years at June 30, 2024 and 2023, respectively. A summary of changes in nonvested restricted stock awards for the periods shown: Time Based Performance Based Total Number Weighted Number Weighted Number Weighted of Average of Average of Average Unvested Grant Date Unvested Grant Date Unvested Grant Date Three Months Ended June 30, 2024 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 15,779 $ 5.72 63,397 $ 5.68 79,176 $ 5.69 Balance, end of period 15,779 $ 5.72 63,397 $ 5.68 79,176 $ 5.69 Time Based Performance Based Total Number Weighted Number Weighted Number Weighted of Average of Average of Average Unvested Grant Date Unvested Grant Date Unvested Grant Date Three Months Ended June 30, 2023 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 29,977 $ 6.14 132,645 $ 6.05 162,622 $ 6.07 Forfeited — — (3,678) 6.30 (3,678) 6.30 Balance, end of period 29,977 $ 6.14 128,967 $ 6.04 158,944 $ 6.06 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income or loss applicable to common stock by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Nonvested shares of restricted stock are included in the computation of basic EPS because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Diluted EPS is computed by dividing net income applicable to common stock by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company’s common stock during the period. Common stock equivalents arise from the assumed exercise of outstanding stock options. For the three months ended June 30, 2024 and 2023, there were no stock options excluded in computing diluted EPS. In November 2022, the Company’s Board of Directors adopted a stock repurchase program (the “November 2022 repurchase program”). Under the November 2022 repurchase program, the Company was authorized to repurchase up to $2.5 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on November 28, 2022 and continuing until the earlier of the completion of the authorized level of repurchases or May 28, 2023, depending upon market conditions. The Company completed the November 2022 repurchase program on May 5, 2023, repurchasing a total of 394,334 shares at an average cost of $6.34 per share for a total cost of $2.5 million. All shares repurchased under the November 2022 program were settled. The Company did not have any publicly announced repurchase plans or programs in place during the three months ended June 30, 2024. The following table presents a reconciliation of the components used to compute basic and diluted EPS for the periods indicated: Three Months Ended June 30, 2024 2023 (Dollars and share data in thousands, except per share data) Basic EPS computation: Numerator-net income $ 966 $ 2,843 Denominator-weighted average common shares outstanding 21,111 21,136 Basic EPS $ 0.05 $ 0.13 Diluted EPS computation: Numerator-net income $ 966 $ 2,843 Denominator-weighted average common shares outstanding 21,111 21,136 Effect of dilutive stock options — 5 Weighted average common shares and common stock equivalents 21,111 21,141 Diluted EPS $ 0.05 $ 0.13 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Jun. 30, 2024 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities consisted of the following at the dates indicated (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2024 Available for sale: Municipal securities $ 41,651 $ 1 $ (6,867) $ 34,785 Agency securities 44,874 — (4,060) 40,814 Real estate mortgage investment conduits (1) 30,677 — (6,005) 24,672 Residential mortgage-backed securities (1) 12,840 6 (921) 11,925 Other mortgage-backed securities (2) 28,878 5 (3,708) 25,175 Total available for sale $ 158,920 $ 12 $ (21,561) $ 137,371 Held to maturity: Municipal securities $ 10,314 $ — $ (2,892) $ 7,422 Agency securities 54,169 — (4,281) 49,888 Real estate mortgage investment conduits (1) 30,922 — (5,228) 25,694 Residential mortgage-backed securities (1) 109,955 — (18,126) 91,829 Other mortgage-backed securities (3) 20,457 — (3,264) 17,193 Total held to maturity $ 225,817 $ — $ (33,791) $ 192,026 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2024 Available for sale: Municipal securities $ 41,657 $ 20 $ (6,541) $ 35,136 Agency securities 47,818 — (4,241) 43,577 Real estate mortgage investment conduits (1) 31,424 — (5,759) 25,665 Residential mortgage-backed securities (1) 13,519 3 (971) 12,551 Other mortgage-backed securities (2) 29,998 3 (3,734) 26,267 Total available for sale $ 164,416 $ 26 $ (21,246) $ 143,196 Held to maturity: Municipal securities $ 10,321 $ — $ (2,789) $ 7,532 Agency securities 54,123 — (4,522) 49,601 Real estate mortgage investment conduits (1) 31,752 — (5,171) 26,581 Residential mortgage-backed securities (1) 112,834 — (18,196) 94,638 Other mortgage-backed securities (3) 20,480 — (3,313) 17,167 Total held to maturity $ 229,510 $ — $ (33,991) $ 195,519 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. (2) Comprised of U.S. Small Business Administration (“SBA”) issued securities and commercial real estate (“CRE”) secured securities issued by FNMA and FHLMC. (3) Comprised of FHLMC and FNMA issued securities. The contractual maturities of investment securities as of June 30, 2024 are as follows (in thousands): Available for Sale Held to Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 16,171 $ 16,064 $ 11,934 $ 11,759 Due after one year through five years 42,525 37,760 39,461 36,333 Due after five years through ten years 33,861 29,154 20,167 16,752 Due after ten years 66,363 54,393 154,255 127,182 Total $ 158,920 $ 137,371 $ 225,817 $ 192,026 Expected maturities of investment securities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The gross unrealized losses and the fair value of securities available-for-sale and held to maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows at the dates indicated (in thousands): Less than 12 months 12 months or longer Total Estimated Estimated Estimated Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2024 Value Losses Value Losses Value Losses Available for sale: Municipal securities $ — $ — $ 32,394 $ (6,867) $ 32,394 $ (6,867) Agency securities — — 40,814 (4,060) 40,814 (4,060) Real estate mortgage investment conduits (1) — — 24,672 (6,005) 24,672 (6,005) Residential mortgage-backed securities (1) — — 11,101 (921) 11,101 (921) Other mortgage-backed securities (2) — — 24,326 (3,708) 24,326 (3,708) Total available for sale $ — $ — $ 133,307 $ (21,561) $ 133,307 $ (21,561) Held to maturity: Municipal securities $ — $ — $ 7,422 $ (2,892) $ 7,422 $ (2,892) Agency securities — — 49,888 (4,281) 49,888 (4,281) Real estate mortgage investment conduits (1) — — 25,694 (5,228) 25,694 (5,228) Residential mortgage-backed securities (1) — — 91,829 (18,126) 91,829 (18,126) Other mortgage-backed securities (3) — — 17,193 (3,264) 17,193 (3,264) Total held to maturity $ — $ — $ 192,026 $ (33,791) $ 192,026 $ (33,791) March 31, 2024 Available for sale: Municipal securities $ — $ — $ 32,748 $ (6,541) $ 32,748 $ (6,541) Agency securities — — 43,577 (4,241) 43,577 (4,241) Real estate mortgage investment conduits (1) — — 25,665 (5,759) 25,665 (5,759) Residential mortgage-backed securities (1) — — 12,073 (971) 12,073 (971) Other mortgage-backed securities (2) 534 (1) 25,403 (3,733) 25,937 (3,734) Total available for sale $ 534 $ (1) $ 139,466 $ (21,245) $ 140,000 $ (21,246) Held to maturity: Municipal securities $ — $ — $ 7,532 $ (2,789) $ 7,532 $ (2,789) Agency securities — — 49,601 (4,522) 49,601 (4,522) Real estate mortgage investment conduits (1) — — 26,581 (5,171) 26,581 (5,171) Residential mortgage-backed securities (1) — — 94,638 (18,196) 94,638 (18,196) Other mortgage-backed securities (3) — — 17,167 (3,313) 17,167 (3,313) Total held to maturity $ — $ — $ 195,519 $ (33,991) $ 195,519 $ (33,991) (1) Comprised of FHLMC, FNMA and GNMA issued securities. (2) Comprised of SBA and CRE secured securities issued by FHLMC and FNMA. (3) Comprised of FHLMC and FNMA issued securities. Allowance for Credit Losses (“ACL”) on Available-for-Sale Debt Securities – For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, Management considers the extent to which fair value is less than amortized costs, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. Projected cash flows are discounted by the current effective interest rate. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. The remaining impairment related to all other factors, the difference between the present value of the cash flows expected to be collected and fair value, is recognized as a charge to accumulated other comprehensive income (loss) (“AOCI”). ACL on Held to Maturity Debt Securities – The Company had no sales and realized no gains or losses on sales of investment securities for the three months ended June 30, 2024 and 2023. Investment securities available for sale with an amortized cost of $2.5 million and $2.6 million and an estimated fair value of $2.3 million and $2.4 million at June 30, 2024 and March 31, 2024, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $11.0 million and $11.2 million and a fair value of $9.1 million and $9.3 million at June 30, 2024 and March 31, 2024, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $148.6 million and $151.2 million and a fair value of $123.6 million and $126.1 million at June 30, 2024 and March 31, 2024, respectively, were pledged as collateral to the Federal Reserve Bank of San Francisco (“FRB”) pursuant to borrowing agreements. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Jun. 30, 2024 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS | 6. LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS Loans receivable are reported net of deferred loan fees and discounts, and inclusive of premiums. Deferred loan fees totaled $4.6 million and $4.7 million at June 30, 2024 and March 31, 2024, respectively. Loans receivable discounts and premiums totaled $1.2 million and $1.9 million, respectively, at June 30, 2024, compared to $1.3 million and $1.9 million, respectively, at March 31, 2024. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands): June 30, March 31, 2024 2024 Commercial and construction Commercial business $ 238,493 $ 229,404 Commercial real estate 578,115 583,501 Land 6,322 5,693 Multi-family 79,278 70,771 Real estate construction 39,958 36,538 Total commercial and construction 942,166 925,907 Consumer Real estate one-to-four family 96,083 96,366 Other installment 6,816 1,740 Total consumer 102,899 98,106 Total loans 1,045,065 1,024,013 Less: ACL for loans 15,364 15,364 Loans receivable, net $ 1,029,701 $ 1,008,649 The Company considers its loan portfolio to have very little exposure to sub-prime mortgage loans since the Company has not historically engaged in this type of lending. At June 30, 2024, loans carried at $784.0 million were pledged as collateral to the FHLB of Des Moines and FRB pursuant to borrowing agreements. Substantially all the Company’s business activity is with customers located in the states of Washington and Oregon. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulation to 15% of the Bank’s shareholders’ equity, excluding accumulated other comprehensive income (loss). As of June 30, 2024 and March 31, 2024, the Bank had no loans to any one borrower in excess of the regulatory limit. Troubled Loan Modifications (“TLM”) There were no loans modified related to borrowers experiencing financial difficulty during the three months ended June 30, 2024. There were no loans past due at June 30, 2024 that had been modified in the previous 12 months. Credit quality indicators Pass Watch Special mention Substandard Doubtful Loss The following table sets forth the Company’s loan portfolio at June 30, 2024 by risk attribute and year of origination as well as current period gross charge-offs (in thousands). Revolving loans that are converted to term loans are treated as new originations in the table below and are presented by year of origination. Term loans that are renewed or extended for periods longer than 90 days are presented as a new origination in the year of the most recent renewal or extension. June 30, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2025 2024 2023 2022 2021 Prior Loans Receivable Commercial business Risk rating Pass $ 1,951 $ 17,940 $ 62,724 $ 83,628 $ 25,872 $ 27,680 $ 12,412 $ 232,207 Special Mention — — — 694 681 1,056 3,802 6,233 Substandard — — — — — 53 — 53 Total commercial business $ 1,951 $ 17,940 $ 62,724 $ 84,322 $ 26,553 $ 28,789 $ 16,214 $ 238,493 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk rating Pass $ 5,871 $ 35,980 $ 66,285 $ 145,972 $ 88,855 $ 204,326 $ — $ 547,289 Special Mention — — 3,725 891 — 26,137 — 30,753 Substandard — — — — — 73 — 73 Total commercial real estate $ 5,871 $ 35,980 $ 70,010 $ 146,863 $ 88,855 $ 230,536 $ — $ 578,115 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Land Risk rating Pass $ — $ 3,037 $ 2,319 $ 92 $ — $ 522 $ — $ 5,970 Special Mention — — 352 — — — — 352 Total land $ — $ 3,037 $ 2,671 $ 92 $ — $ 522 $ — $ 6,322 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-family Risk rating Pass $ 20 $ 965 $ 26,133 $ 36,246 $ 4,613 $ 10,876 $ — $ 78,853 Special Mention — — 186 — 19 152 — 357 Substandard — — — — — 68 — 68 Total multi-family $ 20 $ 965 $ 26,319 $ 36,246 $ 4,632 $ 11,096 $ — $ 79,278 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2025 2024 2023 2022 2021 Prior Loans Receivable Real estate construction Risk rating Pass $ 2,258 $ 18,423 $ 11,118 $ 8,156 $ — $ — $ — $ 39,955 Special Mention 3 — — — — — — 3 Total real estate construction $ 2,261 $ 18,423 $ 11,118 $ 8,156 $ — $ — $ — $ 39,958 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real estate one-to-four family Risk rating Pass $ — $ — $ — $ 60,083 $ 4,134 $ 18,320 $ 13,512 $ 96,049 Substandard — — — — — 34 — 34 Total real estate one-to-four family $ — $ — $ — $ 60,083 $ 4,134 $ 18,354 $ 13,512 $ 96,083 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Other installment Risk rating Pass $ 5,173 $ 441 $ 487 $ 175 $ 65 $ 23 $ 452 $ 6,816 Total other installment $ 5,173 $ 441 $ 487 $ 175 $ 65 $ 23 $ 452 $ 6,816 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ 1 $ 1 Total loans receivable, gross Risk rating Pass $ 15,273 $ 76,786 $ 169,066 $ 334,352 $ 123,539 $ 261,747 $ 26,376 $ 1,007,139 Special Mention 3 — 4,263 1,585 700 27,345 3,802 37,698 Substandard — — — — — 228 — 228 Total loans receivable, gross $ 15,276 $ 76,786 $ 173,329 $ 335,937 $ 124,239 $ 289,320 $ 30,178 $ 1,045,065 Total current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ 1 $ 1 March 31, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2024 2023 2022 2021 2020 Prior Loans Receivable Commercial business Risk rating Pass $ 14,126 $ 63,838 $ 85,131 $ 28,119 $ 16,945 $ 12,411 $ 4,827 $ 225,397 Special Mention — — 733 — 486 232 2,498 3,949 Substandard — — — — — 58 — 58 Total commercial business $ 14,126 $ 63,838 $ 85,864 $ 28,119 $ 17,431 $ 12,701 $ 7,325 $ 229,404 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk rating Pass $ 36,116 $ 66,847 $ 147,015 $ 89,662 $ 53,424 $ 158,311 $ — $ 551,375 Special Mention — 3,752 897 — — 26,878 — 31,527 Substandard 520 — — — — 79 — 599 Total commercial real estate $ 36,636 $ 70,599 $ 147,912 $ 89,662 $ 53,424 $ 185,268 $ — $ 583,501 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Land Risk rating Pass $ 2,361 $ 2,340 $ 94 $ — $ 106 $ 437 $ — $ 5,338 Special Mention — 355 — — — — — 355 Total land $ 2,361 $ 2,695 $ 94 $ — $ 106 $ 437 $ — $ 5,693 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-family Risk rating Pass $ 970 $ 21,643 $ 32,003 $ 4,841 $ 8,788 $ 2,429 $ — $ 70,674 Special Mention — — — — 35 32 — 67 Substandard — — — — — 30 — 30 Total multi-family $ 970 $ 21,643 $ 32,003 $ 4,841 $ 8,823 $ 2,491 $ — $ 70,771 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — March 31, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2024 2023 2022 2021 2020 Prior Loans Receivable Real estate construction Risk rating Pass $ 13,320 $ 10,078 $ 12,346 $ — $ — $ — $ — $ 35,744 Special Mention 794 — — — — — — 794 Total real estate construction $ 14,114 $ 10,078 $ 12,346 $ — $ — $ — $ — $ 36,538 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real estate one-to-four family Risk rating Pass $ — $ — $ 60,447 $ 4,164 $ 4,364 $ 14,756 $ 12,599 $ 96,330 Substandard — — — — — 36 — 36 Total real estate one-to-four family $ — $ — $ 60,447 $ 4,164 $ 4,364 $ 14,792 $ 12,599 $ 96,366 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Other installment Risk rating Pass $ 418 $ 555 $ 198 $ 75 $ 27 $ 8 $ 459 $ 1,740 Total other installment $ 418 $ 555 $ 198 $ 75 $ 27 $ 8 $ 459 $ 1,740 Current YTD gross write-offs $ — $ 11 $ — $ — $ — $ 2 $ — $ 13 Total loans receivable, gross Risk rating Pass $ 67,311 $ 165,301 $ 337,234 $ 126,861 $ 83,654 $ 188,352 $ 17,885 $ 986,598 Special Mention 794 4,107 1,630 — 521 27,142 2,498 36,692 Substandard 520 — — — — 203 — 723 Total loans receivable, gross $ 68,625 $ 169,408 $ 338,864 $ 126,861 $ 84,175 $ 215,697 $ 20,383 $ 1,024,013 Total current YTD gross write-offs $ — $ 11 $ — $ — $ — $ 2 $ — $ 13 ACL on Loans When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for credit losses. The existence of some or all of the following criteria will generally confirm that a loss has been incurred: the loan is significantly delinquent and the borrower has not demonstrated the ability or intent to bring the loan current; the Company has no recourse to the borrower, or if it does, the borrower has insufficient assets to pay the debt; and/or the estimated fair value of the loan collateral is significantly below the current loan balance, and there is little or no near-term prospect for improvement. Management’s evaluation of the ACL for loans is based on ongoing, quarterly assessments of the known and inherent risks in the loan portfolio. Loss factors are based on the Company’s historical loss experience with additional consideration and adjustments made for changes in economic conditions, changes in the amount and composition of the loan portfolio, delinquency rates, changes in collateral values, seasoning of the loan portfolio, duration of the current business cycle, a detailed analysis of individually evaluated loans and other factors as deemed appropriate. These factors are evaluated on a quarterly basis. Loss rates used by the Company are affected as changes in these factors increase or decrease from quarter to quarter. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s ACL for loans and may require the Company to make additions to the ACL for loans based on their judgment about information available to them at the time of their examinations. The following tables detail activity in the ACL for loans at or for the three months ended June 30, 2024 and June 30, 2023, by loan category (in thousands): Three months ended Commercial Commercial Multi- Real Estate June 30, 2024 Business Real Estate Land Family Construction Consumer Unallocated Total Beginning balance $ 5,280 $ 7,391 $ 106 $ 367 $ 636 $ 1,584 $ — $ 15,364 (Recapture of) provision for credit losses (139) (88) 14 35 87 91 — — Charge-offs — — — — — (1) — (1) Recoveries — — — — — 1 — 1 Ending balance $ 5,141 $ 7,303 $ 120 $ 402 $ 723 $ 1,675 $ — $ 15,364 Three months ended June 30, 2023 Beginning balance $ 3,123 $ 8,894 $ 93 $ 798 $ 764 $ 1,127 $ 510 $ 15,309 Impact of adopting CECL (ASU 2016-13) 1,884 (1,494) 40 (492) 131 483 (510) 42 Provision for (recapture of) credit losses 208 (195) (10) (13) (65) 75 — — Charge-offs — — — — — (11) — (11) Recoveries — — — — — 3 — 3 Ending balance $ 5,215 $ 7,205 $ 123 $ 293 $ 830 $ 1,677 $ — $ 15,343 Non-accrual loans The following tables present an analysis of loans by aging category at the dates indicated (in thousands): Total 90 Days Past and Due and Total 30-89 Days Greater Non- Loans June 30, 2024 Past Due Past Due Non-accrual accrual Current Receivable Commercial business $ 1,811 $ 301 $ 53 $ 2,165 $ 236,328 $ 238,493 Commercial real estate 8,409 — 73 8,482 569,633 578,115 Land — — — — 6,322 6,322 Multi-family — — — — 79,278 79,278 Real estate construction — — — — 39,958 39,958 Consumer 11 — 34 45 102,854 102,899 Total $ 10,231 $ 301 $ 160 $ 10,692 $ 1,034,373 $ 1,045,065 March 31, 2024 Commercial business $ 1,778 $ 5 $ 58 $ 1,841 $ 227,563 $ 229,404 Commercial real estate — — 79 79 583,422 583,501 Land — — — — 5,693 5,693 Multi-family — — — — 70,771 70,771 Real estate construction — — — — 36,538 36,538 Consumer 1 — 36 37 98,069 98,106 Total $ 1,779 $ 5 $ 173 $ 1,957 $ 1,022,056 $ 1,024,013 Included in the 30-89 days past due loans at June 30, 2024 are $722,000 of fully guaranteed SBA or United States Department of Agriculture (“USDA”) loans. These government guaranteed loans are classified as pass rated loans and are not considered to be either nonaccrual or classified loans because based on the guarantee, the Company expects to receive all principal and interest according to the contractual terms of the loan agreement and there are no well-defined weaknesses or risk of loss. As a result, these loans were omitted from the required calculation of the ACL for loans. Interest income foregone on non-accrual loans was $2,000 and $10,000 for the three months ended June 30, 2024 and the year ended March 31, 2024, respectively. For additional information, see Management’s Discussion and Analysis of Financial Condition and Results of Operations – Comparison of Financial Condition at June 30, 2024 and March 31, 2024 – Asset Quality, discussed below. At June 30, 2024, the Company had $126,000 of non-accrual loans with no ACL and $34,000 of non-accrual loans with an ACL of $1,000. The amortized cost of collateral dependent loans as of June 30, 2024, were $53,000 and $73,000 for commercial business and commercial real estate, respectively. |
GOODWILL
GOODWILL | 3 Months Ended |
Jun. 30, 2024 | |
GOODWILL | |
GOODWILL | 7. GOODWILL Goodwill and certain other intangibles generally arise from business combinations accounted for under the purchase method of accounting. Goodwill and other intangibles deemed to have indefinite lives generated from business combinations are not subject to amortization and are instead tested for impairment not less than annually. The Company has two reporting units, the Bank and the Trust Company, for purposes of evaluating goodwill for impairment. All the Company’s goodwill has been allocated to the Bank reporting unit. The Company performed an impairment assessment as of October 31, 2023 and determined that no impairment of goodwill exists. The goodwill impairment test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. If the reporting unit’s fair value is less than its carrying value, the Company would be required to progress to the second step. In the second step, the Company calculates the implied fair value of goodwill and compares the implied fair value of goodwill to the carrying amount of goodwill in the Company’s consolidated balance sheet. If the carrying amount of the goodwill is greater than the implied fair value of that goodwill, an impairment loss must be recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination. 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, a step two analysis was not required; however, no assurance can be given that the Company’s goodwill will not be written down in future periods. The Company completed a qualitative assessment of goodwill as of June 30, 2024, 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. |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 3 Months Ended |
Jun. 30, 2024 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 8. FEDERAL HOME LOAN BANK ADVANCES FHLB advances are summarized at the dates indicated (dollars in thousands): June 30, 2024 March 31, 2024 FHLB advances $ 113,504 $ 88,304 Weighted average interest rate on FHLB advances (1) 5.60 % 5.40 % (1) Computed based on the borrowing activity for the three months ended June 30, 2024 and the fiscal year ended March 31, 2024, respectively. The Bank has a credit line with the FHLB equal to 45% of total assets, limited by available collateral. At June 30, 2024, based on collateral values, the Bank had additional borrowing capacity of $164.4 million from the FHLB. FHLB advances are collateralized with loans secured by real estate. At June 30, 2024, loans carried at $478.1 million were pledged as collateral to the FHLB. |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES | 3 Months Ended |
Jun. 30, 2024 | |
JUNIOR SUBORDINATED DEBENTURES | |
JUNIOR SUBORDINATED DEBENTURES | 9. JUNIOR SUBORDINATED DEBENTURES The Company has wholly-owned subsidiary grantor trusts that were established for the purpose of issuing trust preferred securities and common securities. The trust preferred securities accrue and pay distributions periodically at specified annual rates as provided in each trust agreement. The trusts used the net proceeds from each of the offerings to purchase a like amount of junior subordinated debentures (the “Debentures”) of the Company. The Debentures are the sole assets of the trusts. The Company’s obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The trust preferred securities are mandatorily redeemable upon maturity of the Debentures or upon earlier redemption as provided in the indentures. The Company has the right to redeem the Debentures in whole or in part on or after specific dates, at a redemption price specified in the indentures governing the Debentures plus any accrued but unpaid interest to the redemption date. The Company also has the right to defer the payment of interest on each of the Debentures for a period not to exceed 20 consecutive quarters, provided that the deferral period does not extend beyond the stated maturity. During such deferral period, distributions on the corresponding trust preferred securities will also be deferred and the Company may not pay cash dividends to the holders of shares of the Company’s common stock. The Debentures issued by the Company to the grantor trusts, which totaled $27.0 million at both June 30, 2024 and March 31, 2024, are reported as “junior subordinated debentures” in the consolidated balance sheets. The common securities issued by the grantor trusts were purchased by the Company, and the Company’s investment in the common securities of $836,000 at both June 30, 2024 and March 31, 2024, is included in prepaid expenses and other assets in the consolidated balance sheets. The Company records interest expense on the Debentures in the consolidated statements of income. The following table is a summary of the terms and the amounts outstanding of the Debentures at June 30, 2024 (dollars in thousands): Issuance Trust Issuance Date Amount Outstanding Rate Type Initial Rate Current Rate Maturity Date Riverview Bancorp Statutory Trust I 12/2005 $ 7,217 Variable (1) 5.88 % 6.96 % 3/2036 Riverview Bancorp Statutory Trust II 06/2007 15,464 Variable (2) 7.03 % 6.95 % 9/2037 Merchants Bancorp Statutory Trust I (4) 06/2003 5,155 Variable (3) 4.16 % 8.70 % 6/2033 27,836 Fair value adjustment (4) (810) Total Debentures $ 27,026 (1) The trust preferred securities reprice quarterly based on the three-month Chicago Mercantile Exchange (“CME”) Term SOFR plus 1.36% . (2) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 1.35% . (3) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 3.10% . (4) Amount, net of accretion, attributable to a prior year’s business combination . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS Fair value is defined under GAAP as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels. These levels are: Quoted prices in active markets for identical assets (Level 1) Other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial instruments are presented in the tables that follow by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the consolidated financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, as a result of an event or circumstance, were required to be remeasured at fair value after initial recognition in the consolidated financial statements at some time during the reporting period. The following tables present assets that are measured at estimated fair value on a recurring basis at the dates indicated (in thousands): Total Estimated Estimated Fair Value Measurements Using June 30, 2024 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 34,785 $ — $ 34,785 $ — Agency securities 40,814 — 40,814 — Real estate mortgage investment conduits 24,672 — 24,672 — Residential mortgage-backed securities 11,925 — 11,925 — Other mortgage-backed securities 25,175 — 25,175 — Total assets measured at fair value on a recurring basis $ 137,371 $ — $ 137,371 $ — Total Estimated Estimated Fair Value Measurements Using March 31, 2024 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 35,136 $ — $ 35,136 $ — Agency securities 43,577 — 43,577 — Real estate mortgage investment conduits 25,665 — 25,665 — Residential mortgage-backed securities 12,551 — 12,551 — Other mortgage-backed securities 26,267 — 26,267 — Total assets measured at fair value on a recurring basis $ 143,196 $ — $ 143,196 $ — There were no transfers of assets into or out of Levels 1, 2 or 3 for both the three months ended June 30, 2024 and the year ended March 31, 2024. The following methods were used to estimate the fair value of financial instruments above: Investment securities are included within Level 1 of the hierarchy when quoted prices in an active market for identical assets are available. The Company uses a third-party pricing service to assist the Company in determining the fair value of its Level 2 securities, which incorporates pricing models and/or quoted prices of investment securities with similar characteristics. Investment securities are included within Level 3 of the hierarchy when there are significant unobservable inputs. For Level 2 securities, the independent pricing service provides pricing information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data from market research publications. The Company’s third-party pricing service has established processes for the Company to submit inquiries regarding the estimated fair value. In such cases, the Company’s third-party pricing service will review the inputs to the evaluation in light of any new market data presented by the Company. The Company’s third-party pricing service may then affirm the original estimated fair value or may update the evaluation on a go-forward basis. Management reviews the pricing information received from the third-party pricing service through a combination of procedures that include an evaluation of methodologies used by the pricing service, analytical reviews and performance analysis of the prices against statistics and trends. Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted. As necessary, management compares prices received from the pricing service to discounted cash flow models or by performing independent valuations of inputs and assumptions similar to those used by the pricing service in order to help ensure prices represent a reasonable estimate of fair value. There were no assets measured at estimated fair value on a nonrecurring basis at both June 30, 2024 and March 31, 2024. The following disclosure of the estimated fair value of financial instruments is made in accordance with GAAP. The Company, using available market information and appropriate valuation methodologies, has determined the estimated fair value amounts. However, considerable judgment is necessary to interpret market data in the development of the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in the future. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The carrying amount and estimated fair value of financial instruments is as follows at the dates indicated (in thousands): Carrying Estimated June 30, 2024 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 27,804 $ 27,804 $ — $ — $ 27,804 Investment securities available for sale 137,371 — 137,371 — 137,371 Investment securities held to maturity 225,817 — 192,026 — 192,026 Loans receivable, net 1,029,701 — — 928,275 928,275 FHLB stock 6,061 — 6,061 — 6,061 Liabilities: Certificates of deposit 204,423 — 202,614 — 202,614 FHLB advances 113,504 — 113,243 — 113,243 Junior subordinated debentures 27,026 — — 19,465 19,465 Carrying Estimated March 31, 2024 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 23,642 $ 23,642 $ — $ — $ 23,642 Investment securities available for sale 143,196 — 143,196 — 143,196 Investment securities held to maturity 229,510 — 195,519 — 195,519 Loans receivable, net 1,008,649 — — 909,254 909,254 FHLB stock 4,927 — 4,927 — 4,927 Liabilities: Certificates of deposit 190,972 — 188,972 — 188,972 FHLB advances 88,304 — 88,101 — 88,101 Junior subordinated debentures 27,004 — — 19,327 19,327 Fair value estimates were based on existing financial instruments without attempting to estimate the value of anticipated future business. The fair value was not estimated for assets and liabilities that were not considered financial instruments. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jun. 30, 2024 | |
NEW ACCOUNTING PRONOUNCEMENTS | |
NEW ACCOUNTING PRONOUNCEMENTS | 11. NEW ACCOUNTING PRONOUNCEMENTS In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance within Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Those amendments require disclosure of the following information about income taxes paid on an annual basis: ● Income taxes paid (net of refunds received), disaggregated by federal and state taxes and by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received). ● Income tax expense (or benefit) from continuing operations disaggregated by federal and state jurisdictions. The ASU is effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. The Company expects this ASU to only impact its disclosure requirements and does not expect the adoption of this ASU to have a material impact on its business operations or financial condition. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Jun. 30, 2024 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12. REVENUE FROM CONTRACTS WITH CUSTOMERS In accordance with ASC Topic 606 “Revenues from Contracts with Customers” (“ASC 606”), revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Company expects to be entitled to receive. The largest portion of the Company’s revenue is from interest income, which is not within the scope of ASC 606. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized in non-interest income except for gains on sales of REO and premises and equipment, which are included in non-interest expense. If a contract is determined to be within the scope of ASC 606, the Company recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, or quarterly. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine (“ATM”) transaction fees, wire transfer fees, overdraft fees and interchange fees. Revenue earned at a point in time is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by the Company’s systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Company is generally the principal in these contracts, except for interchange fees, in which case the Company is acting as the agent and records revenue net of expenses paid to the principal. Examples of revenue earned over time, which generally occur monthly, are deposit account maintenance fees, investment advisory fees, merchant revenue, trust and investment management fees and safe deposit box fees. Revenue is generally derived from transactional information accumulated by the Company’s systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer. For the three months ended June 30, 2024 and 2023, substantially all of the Company’s revenues within the scope of ASC 606 are for performance obligations satisfied at a point in time. Disaggregation of Revenue The following table includes the Company’s non-interest income, net disaggregated by type of service for the periods shown (in thousands): Three Months Ended June 30, 2024 2023 Asset management fees $ 1,558 $ 1,381 Debit card and ATM fees 821 847 Deposit related fees 461 453 Loan related fees 88 111 Income from BOLI (1) 211 200 FHLMC loan servicing fees (1) 19 22 Other, net 209 271 Total non-interest income, net $ 3,367 $ 3,285 (1) Not within scope of ASC 606 Revenues recognized within scope of ASC 606 Asset management fees Debit card and ATM fees Deposit related fees Loan related fees Other Contract Balances As of June 30, 2024, the Company had no significant contract liabilities where the Company had an obligation to transfer goods or services for which the Company had already received consideration. In addition, the Company had no material unsatisfied performance obligations as of June 30, 2024 and 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 13. COMMITMENTS AND CONTINGENCIES Off-balance sheet arrangements Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. These guarantees are primarily used to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies and is required in instances where the Company deems it necessary. Significant off-balance sheet commitments at June 30, 2024 are listed below (in thousands): Contract or Notional Amount June 30, 2024 Commitments to extend credit: Adjustable-rate $ 2,332 Fixed-rate 748 Standby letters of credit 1,600 Undisbursed loan funds and unused lines of credit 126,604 Total $ 131,284 Other contractual obligations – The Bank is a public depository and, accordingly, accepts deposit and other public funds belonging to, or held for the benefit of, Washington and Oregon states, political subdivisions thereof, and municipal corporations. In accordance with applicable state law, in the event of default of a participating bank, all other participating banks in the state collectively assure that no loss of funds are suffered by any public depositor. Generally, in the event of default by a public depository, the assessment attributable to all public depositories is allocated on a pro rata basis in proportion to the maximum liability of each depository as it existed on the date of loss. The Company did not incur any losses related to public depository funds for the three months ended June 30, 2024 and 2023. The Bank has entered into employment contracts with certain key employees, which provide for contingent payments subject to future events. Litigation related to all outstanding or new legal matters based on the most recent information available. If a loss is not probable, or the amount cannot be estimated, no accrual is established. When a loss is determined to be probable and can be reasonably estimated, an accrual for the loss is established and adjusted as necessary to reflect any subsequent developments. Estimating the amount of loss is inherently difficult and there may be cases where a loss is probable or reasonably possible but not currently estimable. Actual losses may exceed any established accrual or the range of reasonably possible loss and management’s estimates may change over time. Determining the future resolution of legal matters involves significant judgment and uncertainty, and it is usually difficult to determine whether a favorable or unfavorable outcome is remote, reasonably likely, or probable, or to estimate the amount or range of a probable or reasonably likely loss, until relatively late in the process. The Company is currently involved in a lawsuit for which certain parties participated in a mediation in May 2023 and a stay of proceedings is in place to allow for continued settlement efforts. Based on the information available, management has concluded that a loss was probable and could be reasonably estimated. Accordingly, the Company determined that there was a potential liability resulting from pending litigation involving a former Riverview business client related to their real estate investments offered by a business owned by that client. Given the proposed global settlement of the litigation, the Company recorded a $2.3 million expense in other non-interest expense during the three months ended March 31, 2024. This expense reflects Riverview’s estimate of litigation costs that exceed the Company’s insurance coverage. Subsequent to quarter-end, settlement of the litigation was approved by all the respective courts with a final settlement payment of $1.2 million to be made by the Company. |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2024 | |
LEASES | |
LEASES | 14. LEASES The Company has a finance lease for the shell of the building constructed as the Company’s operations center which expires in November 2039. The Company is also obligated under various noncancelable operating lease agreements for land, buildings and equipment that require future minimum rental payments. For each operating lease with an initial term of more than 12 months, the Company records an operating lease right-of-use (“ROU”) asset (representing the right to use the underlying asset for the lease term) and an operating lease liability (representing the obligation to make lease payments required under the terms of the lease). Operating lease ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate – derived from information available at the lease commencement date – as the discount rate when determining the present value of lease payments. The Company does not have any operating leases with an initial term of 12 months or less. Certain operating leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Certain operating leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. Lease extensions are not reasonably certain and the Company generally does not include payments occurring during option periods in the calculation of its operating lease ROU assets and operating lease liabilities. The table below presents the ROU assets and lease liabilities recorded in the consolidated balance sheets at the dates indicated (in thousands): June 30, March 31, Classification in the Leases 2024 2024 consolidated balance sheets Finance lease ROU assets $ 1,182 $ 1,202 Financing lease ROU assets Finance lease liability $ 2,151 $ 2,168 Finance lease liability Finance lease remaining lease term 15.43 years 15.68 years Finance lease discount rate 7.16 % 7.16 % Operating lease ROU assets $ 5,169 $ 5,479 Prepaid expenses and other assets Operating lease liabilities $ 5,450 $ 5,780 Accrued expenses and other liabilities Operating lease weighted-average remaining lease term 5.16 years 5.34 years Operating lease weighted-average discount rate 1.73 % 1.74 % The table below presents certain information related to the lease costs for operating leases, which are recorded in occupancy and depreciation in the accompanying consolidated statements of income at the dates indicated (in thousands): Three months ended Three months ended Lease Costs June 30, 2024 June 30, 2023 Finance lease amortization of ROU asset $ 19 $ 19 Finance lease interest on lease liability 39 40 Operating lease costs 283 283 Variable lease costs 52 52 Total lease cost (1) $ 393 $ 394 (1) Income related to sub-lease activity is not significant and not presented herein. Supplemental cash flow information - The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of June 30, 2024 (in thousands): Fiscal Year Ending March 31: Operating Finance Leases Lease Remainder of 2025 $ 1,029 $ 168 2026 1,125 226 2027 1,116 230 2028 899 232 2029 684 232 Thereafter 947 2,479 Total minimum lease payments 5,800 3,567 Less: amount of lease payments representing interest (350) (1,416) Lease liabilities $ 5,450 $ 2,151 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 966 | $ 2,843 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Quarterly Reports on Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of financial condition, results of operations and cash flows in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”). However, all adjustments that are, in the opinion of management, necessary for a fair presentation of the interim unaudited consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Riverview Bancorp, Inc. Annual Report on Form 10-K for the year ended March 31, 2024 (“2024 Form 10-K”). The unaudited consolidated results of operations for the three months ended June 30, 2024 are not necessarily indicative of the results which may be expected for the entire fiscal year ending March 31, 2025. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period presentation; such reclassifications had no effect on previously reported net income or total shareholders’ equity. |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Riverview Bancorp, Inc.; its wholly-owned subsidiary, Riverview Bank (the “Bank”); and the Bank’s wholly-owned subsidiaries, Riverview Services, Inc. and Riverview Trust Company (the “Trust Company”) (collectively referred to as the “Company”). All inter-company transactions and balances have been eliminated in consolidation. |
STOCK PLANS AND STOCK-BASED C_2
STOCK PLANS AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
STOCK PLANS AND STOCK-BASED COMPENSATION | |
Schedule of activity related to stock options under the Stock Option Plans | Three Months Ended June 30, 2023 Weighted Average Number of Exercise Shares Price Balance, beginning of period 14,310 $ 2.78 Options exercised (6,799) 2.78 Balance, end of period 7,511 $ 2.78 |
Schedule of information on stock options outstanding under the Stock Option Plans | 2023 Stock options fully vested and expected to vest: Number 7,511 Weighted average exercise price $ 2.78 Aggregate intrinsic value (1) $ 17,000 Weighted average contractual term of options (years) 0.04 Stock options fully vested and currently exercisable: Number 7,511 Weighted average exercise price $ 2.78 Aggregate intrinsic value (1) $ 17,000 Weighted average contractual term of options (years) 0.04 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price) that would have been received by the option holders had all option holders exercised. This amount changes based on changes in the market value of the Company’s stock. |
Schedule of unvested restricted stock activity | Time Based Performance Based Total Number Weighted Number Weighted Number Weighted of Average of Average of Average Unvested Grant Date Unvested Grant Date Unvested Grant Date Three Months Ended June 30, 2024 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 15,779 $ 5.72 63,397 $ 5.68 79,176 $ 5.69 Balance, end of period 15,779 $ 5.72 63,397 $ 5.68 79,176 $ 5.69 Time Based Performance Based Total Number Weighted Number Weighted Number Weighted of Average of Average of Average Unvested Grant Date Unvested Grant Date Unvested Grant Date Three Months Ended June 30, 2023 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 29,977 $ 6.14 132,645 $ 6.05 162,622 $ 6.07 Forfeited — — (3,678) 6.30 (3,678) 6.30 Balance, end of period 29,977 $ 6.14 128,967 $ 6.04 158,944 $ 6.06 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Three Months Ended June 30, 2024 2023 (Dollars and share data in thousands, except per share data) Basic EPS computation: Numerator-net income $ 966 $ 2,843 Denominator-weighted average common shares outstanding 21,111 21,136 Basic EPS $ 0.05 $ 0.13 Diluted EPS computation: Numerator-net income $ 966 $ 2,843 Denominator-weighted average common shares outstanding 21,111 21,136 Effect of dilutive stock options — 5 Weighted average common shares and common stock equivalents 21,111 21,141 Diluted EPS $ 0.05 $ 0.13 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and approximate fair value of investment securities | The amortized cost and approximate fair value of investment securities consisted of the following at the dates indicated (in thousands): Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2024 Available for sale: Municipal securities $ 41,651 $ 1 $ (6,867) $ 34,785 Agency securities 44,874 — (4,060) 40,814 Real estate mortgage investment conduits (1) 30,677 — (6,005) 24,672 Residential mortgage-backed securities (1) 12,840 6 (921) 11,925 Other mortgage-backed securities (2) 28,878 5 (3,708) 25,175 Total available for sale $ 158,920 $ 12 $ (21,561) $ 137,371 Held to maturity: Municipal securities $ 10,314 $ — $ (2,892) $ 7,422 Agency securities 54,169 — (4,281) 49,888 Real estate mortgage investment conduits (1) 30,922 — (5,228) 25,694 Residential mortgage-backed securities (1) 109,955 — (18,126) 91,829 Other mortgage-backed securities (3) 20,457 — (3,264) 17,193 Total held to maturity $ 225,817 $ — $ (33,791) $ 192,026 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2024 Available for sale: Municipal securities $ 41,657 $ 20 $ (6,541) $ 35,136 Agency securities 47,818 — (4,241) 43,577 Real estate mortgage investment conduits (1) 31,424 — (5,759) 25,665 Residential mortgage-backed securities (1) 13,519 3 (971) 12,551 Other mortgage-backed securities (2) 29,998 3 (3,734) 26,267 Total available for sale $ 164,416 $ 26 $ (21,246) $ 143,196 Held to maturity: Municipal securities $ 10,321 $ — $ (2,789) $ 7,532 Agency securities 54,123 — (4,522) 49,601 Real estate mortgage investment conduits (1) 31,752 — (5,171) 26,581 Residential mortgage-backed securities (1) 112,834 — (18,196) 94,638 Other mortgage-backed securities (3) 20,480 — (3,313) 17,167 Total held to maturity $ 229,510 $ — $ (33,991) $ 195,519 (1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities. (2) Comprised of U.S. Small Business Administration (“SBA”) issued securities and commercial real estate (“CRE”) secured securities issued by FNMA and FHLMC. (3) Comprised of FHLMC and FNMA issued securities. |
Schedule of contractual maturities of investment securities | The contractual maturities of investment securities as of June 30, 2024 are as follows (in thousands): Available for Sale Held to Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 16,171 $ 16,064 $ 11,934 $ 11,759 Due after one year through five years 42,525 37,760 39,461 36,333 Due after five years through ten years 33,861 29,154 20,167 16,752 Due after ten years 66,363 54,393 154,255 127,182 Total $ 158,920 $ 137,371 $ 225,817 $ 192,026 |
Schedule of fair value for securities available-for-sale and held to maturity and unrealized losses | The gross unrealized losses and the fair value of securities available-for-sale and held to maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows at the dates indicated (in thousands): Less than 12 months 12 months or longer Total Estimated Estimated Estimated Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2024 Value Losses Value Losses Value Losses Available for sale: Municipal securities $ — $ — $ 32,394 $ (6,867) $ 32,394 $ (6,867) Agency securities — — 40,814 (4,060) 40,814 (4,060) Real estate mortgage investment conduits (1) — — 24,672 (6,005) 24,672 (6,005) Residential mortgage-backed securities (1) — — 11,101 (921) 11,101 (921) Other mortgage-backed securities (2) — — 24,326 (3,708) 24,326 (3,708) Total available for sale $ — $ — $ 133,307 $ (21,561) $ 133,307 $ (21,561) Held to maturity: Municipal securities $ — $ — $ 7,422 $ (2,892) $ 7,422 $ (2,892) Agency securities — — 49,888 (4,281) 49,888 (4,281) Real estate mortgage investment conduits (1) — — 25,694 (5,228) 25,694 (5,228) Residential mortgage-backed securities (1) — — 91,829 (18,126) 91,829 (18,126) Other mortgage-backed securities (3) — — 17,193 (3,264) 17,193 (3,264) Total held to maturity $ — $ — $ 192,026 $ (33,791) $ 192,026 $ (33,791) March 31, 2024 Available for sale: Municipal securities $ — $ — $ 32,748 $ (6,541) $ 32,748 $ (6,541) Agency securities — — 43,577 (4,241) 43,577 (4,241) Real estate mortgage investment conduits (1) — — 25,665 (5,759) 25,665 (5,759) Residential mortgage-backed securities (1) — — 12,073 (971) 12,073 (971) Other mortgage-backed securities (2) 534 (1) 25,403 (3,733) 25,937 (3,734) Total available for sale $ 534 $ (1) $ 139,466 $ (21,245) $ 140,000 $ (21,246) Held to maturity: Municipal securities $ — $ — $ 7,532 $ (2,789) $ 7,532 $ (2,789) Agency securities — — 49,601 (4,522) 49,601 (4,522) Real estate mortgage investment conduits (1) — — 26,581 (5,171) 26,581 (5,171) Residential mortgage-backed securities (1) — — 94,638 (18,196) 94,638 (18,196) Other mortgage-backed securities (3) — — 17,167 (3,313) 17,167 (3,313) Total held to maturity $ — $ — $ 195,519 $ (33,991) $ 195,519 $ (33,991) (1) Comprised of FHLMC, FNMA and GNMA issued securities. (2) Comprised of SBA and CRE secured securities issued by FHLMC and FNMA. (3) Comprised of FHLMC and FNMA issued securities. |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS | |
Schedule of loans and financing receivable | Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands): June 30, March 31, 2024 2024 Commercial and construction Commercial business $ 238,493 $ 229,404 Commercial real estate 578,115 583,501 Land 6,322 5,693 Multi-family 79,278 70,771 Real estate construction 39,958 36,538 Total commercial and construction 942,166 925,907 Consumer Real estate one-to-four family 96,083 96,366 Other installment 6,816 1,740 Total consumer 102,899 98,106 Total loans 1,045,065 1,024,013 Less: ACL for loans 15,364 15,364 Loans receivable, net $ 1,029,701 $ 1,008,649 |
Schedule of risk category of bank loans by year of origination | June 30, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2025 2024 2023 2022 2021 Prior Loans Receivable Commercial business Risk rating Pass $ 1,951 $ 17,940 $ 62,724 $ 83,628 $ 25,872 $ 27,680 $ 12,412 $ 232,207 Special Mention — — — 694 681 1,056 3,802 6,233 Substandard — — — — — 53 — 53 Total commercial business $ 1,951 $ 17,940 $ 62,724 $ 84,322 $ 26,553 $ 28,789 $ 16,214 $ 238,493 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk rating Pass $ 5,871 $ 35,980 $ 66,285 $ 145,972 $ 88,855 $ 204,326 $ — $ 547,289 Special Mention — — 3,725 891 — 26,137 — 30,753 Substandard — — — — — 73 — 73 Total commercial real estate $ 5,871 $ 35,980 $ 70,010 $ 146,863 $ 88,855 $ 230,536 $ — $ 578,115 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Land Risk rating Pass $ — $ 3,037 $ 2,319 $ 92 $ — $ 522 $ — $ 5,970 Special Mention — — 352 — — — — 352 Total land $ — $ 3,037 $ 2,671 $ 92 $ — $ 522 $ — $ 6,322 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-family Risk rating Pass $ 20 $ 965 $ 26,133 $ 36,246 $ 4,613 $ 10,876 $ — $ 78,853 Special Mention — — 186 — 19 152 — 357 Substandard — — — — — 68 — 68 Total multi-family $ 20 $ 965 $ 26,319 $ 36,246 $ 4,632 $ 11,096 $ — $ 79,278 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — June 30, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2025 2024 2023 2022 2021 Prior Loans Receivable Real estate construction Risk rating Pass $ 2,258 $ 18,423 $ 11,118 $ 8,156 $ — $ — $ — $ 39,955 Special Mention 3 — — — — — — 3 Total real estate construction $ 2,261 $ 18,423 $ 11,118 $ 8,156 $ — $ — $ — $ 39,958 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real estate one-to-four family Risk rating Pass $ — $ — $ — $ 60,083 $ 4,134 $ 18,320 $ 13,512 $ 96,049 Substandard — — — — — 34 — 34 Total real estate one-to-four family $ — $ — $ — $ 60,083 $ 4,134 $ 18,354 $ 13,512 $ 96,083 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Other installment Risk rating Pass $ 5,173 $ 441 $ 487 $ 175 $ 65 $ 23 $ 452 $ 6,816 Total other installment $ 5,173 $ 441 $ 487 $ 175 $ 65 $ 23 $ 452 $ 6,816 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ 1 $ 1 Total loans receivable, gross Risk rating Pass $ 15,273 $ 76,786 $ 169,066 $ 334,352 $ 123,539 $ 261,747 $ 26,376 $ 1,007,139 Special Mention 3 — 4,263 1,585 700 27,345 3,802 37,698 Substandard — — — — — 228 — 228 Total loans receivable, gross $ 15,276 $ 76,786 $ 173,329 $ 335,937 $ 124,239 $ 289,320 $ 30,178 $ 1,045,065 Total current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ 1 $ 1 March 31, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2024 2023 2022 2021 2020 Prior Loans Receivable Commercial business Risk rating Pass $ 14,126 $ 63,838 $ 85,131 $ 28,119 $ 16,945 $ 12,411 $ 4,827 $ 225,397 Special Mention — — 733 — 486 232 2,498 3,949 Substandard — — — — — 58 — 58 Total commercial business $ 14,126 $ 63,838 $ 85,864 $ 28,119 $ 17,431 $ 12,701 $ 7,325 $ 229,404 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate Risk rating Pass $ 36,116 $ 66,847 $ 147,015 $ 89,662 $ 53,424 $ 158,311 $ — $ 551,375 Special Mention — 3,752 897 — — 26,878 — 31,527 Substandard 520 — — — — 79 — 599 Total commercial real estate $ 36,636 $ 70,599 $ 147,912 $ 89,662 $ 53,424 $ 185,268 $ — $ 583,501 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Land Risk rating Pass $ 2,361 $ 2,340 $ 94 $ — $ 106 $ 437 $ — $ 5,338 Special Mention — 355 — — — — — 355 Total land $ 2,361 $ 2,695 $ 94 $ — $ 106 $ 437 $ — $ 5,693 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Multi-family Risk rating Pass $ 970 $ 21,643 $ 32,003 $ 4,841 $ 8,788 $ 2,429 $ — $ 70,674 Special Mention — — — — 35 32 — 67 Substandard — — — — — 30 — 30 Total multi-family $ 970 $ 21,643 $ 32,003 $ 4,841 $ 8,823 $ 2,491 $ — $ 70,771 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — March 31, 2024 Term Loans Amortized Cost Basis by Origination Fiscal Year Total Revolving Loans 2024 2023 2022 2021 2020 Prior Loans Receivable Real estate construction Risk rating Pass $ 13,320 $ 10,078 $ 12,346 $ — $ — $ — $ — $ 35,744 Special Mention 794 — — — — — — 794 Total real estate construction $ 14,114 $ 10,078 $ 12,346 $ — $ — $ — $ — $ 36,538 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Real estate one-to-four family Risk rating Pass $ — $ — $ 60,447 $ 4,164 $ 4,364 $ 14,756 $ 12,599 $ 96,330 Substandard — — — — — 36 — 36 Total real estate one-to-four family $ — $ — $ 60,447 $ 4,164 $ 4,364 $ 14,792 $ 12,599 $ 96,366 Current YTD gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — Other installment Risk rating Pass $ 418 $ 555 $ 198 $ 75 $ 27 $ 8 $ 459 $ 1,740 Total other installment $ 418 $ 555 $ 198 $ 75 $ 27 $ 8 $ 459 $ 1,740 Current YTD gross write-offs $ — $ 11 $ — $ — $ — $ 2 $ — $ 13 Total loans receivable, gross Risk rating Pass $ 67,311 $ 165,301 $ 337,234 $ 126,861 $ 83,654 $ 188,352 $ 17,885 $ 986,598 Special Mention 794 4,107 1,630 — 521 27,142 2,498 36,692 Substandard 520 — — — — 203 — 723 Total loans receivable, gross $ 68,625 $ 169,408 $ 338,864 $ 126,861 $ 84,175 $ 215,697 $ 20,383 $ 1,024,013 Total current YTD gross write-offs $ — $ 11 $ — $ — $ — $ 2 $ — $ 13 |
Schedule of reconciliation of the allowance for loan losses | The following tables detail activity in the ACL for loans at or for the three months ended June 30, 2024 and June 30, 2023, by loan category (in thousands): Three months ended Commercial Commercial Multi- Real Estate June 30, 2024 Business Real Estate Land Family Construction Consumer Unallocated Total Beginning balance $ 5,280 $ 7,391 $ 106 $ 367 $ 636 $ 1,584 $ — $ 15,364 (Recapture of) provision for credit losses (139) (88) 14 35 87 91 — — Charge-offs — — — — — (1) — (1) Recoveries — — — — — 1 — 1 Ending balance $ 5,141 $ 7,303 $ 120 $ 402 $ 723 $ 1,675 $ — $ 15,364 Three months ended June 30, 2023 Beginning balance $ 3,123 $ 8,894 $ 93 $ 798 $ 764 $ 1,127 $ 510 $ 15,309 Impact of adopting CECL (ASU 2016-13) 1,884 (1,494) 40 (492) 131 483 (510) 42 Provision for (recapture of) credit losses 208 (195) (10) (13) (65) 75 — — Charge-offs — — — — — (11) — (11) Recoveries — — — — — 3 — 3 Ending balance $ 5,215 $ 7,205 $ 123 $ 293 $ 830 $ 1,677 $ — $ 15,343 |
Schedule of analysis of loans by aging category | The following tables present an analysis of loans by aging category at the dates indicated (in thousands): Total 90 Days Past and Due and Total 30-89 Days Greater Non- Loans June 30, 2024 Past Due Past Due Non-accrual accrual Current Receivable Commercial business $ 1,811 $ 301 $ 53 $ 2,165 $ 236,328 $ 238,493 Commercial real estate 8,409 — 73 8,482 569,633 578,115 Land — — — — 6,322 6,322 Multi-family — — — — 79,278 79,278 Real estate construction — — — — 39,958 39,958 Consumer 11 — 34 45 102,854 102,899 Total $ 10,231 $ 301 $ 160 $ 10,692 $ 1,034,373 $ 1,045,065 March 31, 2024 Commercial business $ 1,778 $ 5 $ 58 $ 1,841 $ 227,563 $ 229,404 Commercial real estate — — 79 79 583,422 583,501 Land — — — — 5,693 5,693 Multi-family — — — — 70,771 70,771 Real estate construction — — — — 36,538 36,538 Consumer 1 — 36 37 98,069 98,106 Total $ 1,779 $ 5 $ 173 $ 1,957 $ 1,022,056 $ 1,024,013 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Schedule of FHLB advances | FHLB advances are summarized at the dates indicated (dollars in thousands): June 30, 2024 March 31, 2024 FHLB advances $ 113,504 $ 88,304 Weighted average interest rate on FHLB advances (1) 5.60 % 5.40 % (1) Computed based on the borrowing activity for the three months ended June 30, 2024 and the fiscal year ended March 31, 2024, respectively. |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
JUNIOR SUBORDINATED DEBENTURES | |
Schedule of summary of the terms and amounts outstanding of the debentures | The following table is a summary of the terms and the amounts outstanding of the Debentures at June 30, 2024 (dollars in thousands): Issuance Trust Issuance Date Amount Outstanding Rate Type Initial Rate Current Rate Maturity Date Riverview Bancorp Statutory Trust I 12/2005 $ 7,217 Variable (1) 5.88 % 6.96 % 3/2036 Riverview Bancorp Statutory Trust II 06/2007 15,464 Variable (2) 7.03 % 6.95 % 9/2037 Merchants Bancorp Statutory Trust I (4) 06/2003 5,155 Variable (3) 4.16 % 8.70 % 6/2033 27,836 Fair value adjustment (4) (810) Total Debentures $ 27,026 (1) The trust preferred securities reprice quarterly based on the three-month Chicago Mercantile Exchange (“CME”) Term SOFR plus 1.36% . (2) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 1.35% . (3) The trust preferred securities reprice quarterly based on the three-month CME Term SOFR plus 3.10% . (4) Amount, net of accretion, attributable to a prior year’s business combination . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of assets that are measured at estimated fair value on a recurring basis | The following tables present assets that are measured at estimated fair value on a recurring basis at the dates indicated (in thousands): Total Estimated Estimated Fair Value Measurements Using June 30, 2024 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 34,785 $ — $ 34,785 $ — Agency securities 40,814 — 40,814 — Real estate mortgage investment conduits 24,672 — 24,672 — Residential mortgage-backed securities 11,925 — 11,925 — Other mortgage-backed securities 25,175 — 25,175 — Total assets measured at fair value on a recurring basis $ 137,371 $ — $ 137,371 $ — Total Estimated Estimated Fair Value Measurements Using March 31, 2024 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 35,136 $ — $ 35,136 $ — Agency securities 43,577 — 43,577 — Real estate mortgage investment conduits 25,665 — 25,665 — Residential mortgage-backed securities 12,551 — 12,551 — Other mortgage-backed securities 26,267 — 26,267 — Total assets measured at fair value on a recurring basis $ 143,196 $ — $ 143,196 $ — |
Schedule of carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of financial instruments is as follows at the dates indicated (in thousands): Carrying Estimated June 30, 2024 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 27,804 $ 27,804 $ — $ — $ 27,804 Investment securities available for sale 137,371 — 137,371 — 137,371 Investment securities held to maturity 225,817 — 192,026 — 192,026 Loans receivable, net 1,029,701 — — 928,275 928,275 FHLB stock 6,061 — 6,061 — 6,061 Liabilities: Certificates of deposit 204,423 — 202,614 — 202,614 FHLB advances 113,504 — 113,243 — 113,243 Junior subordinated debentures 27,026 — — 19,465 19,465 Carrying Estimated March 31, 2024 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 23,642 $ 23,642 $ — $ — $ 23,642 Investment securities available for sale 143,196 — 143,196 — 143,196 Investment securities held to maturity 229,510 — 195,519 — 195,519 Loans receivable, net 1,008,649 — — 909,254 909,254 FHLB stock 4,927 — 4,927 — 4,927 Liabilities: Certificates of deposit 190,972 — 188,972 — 188,972 FHLB advances 88,304 — 88,101 — 88,101 Junior subordinated debentures 27,004 — — 19,327 19,327 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of non-interest income disaggregated by type of service | The following table includes the Company’s non-interest income, net disaggregated by type of service for the periods shown (in thousands): Three Months Ended June 30, 2024 2023 Asset management fees $ 1,558 $ 1,381 Debit card and ATM fees 821 847 Deposit related fees 461 453 Loan related fees 88 111 Income from BOLI (1) 211 200 FHLMC loan servicing fees (1) 19 22 Other, net 209 271 Total non-interest income, net $ 3,367 $ 3,285 (1) Not within scope of ASC 606 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of significant off-balance sheet commitments | Significant off-balance sheet commitments at June 30, 2024 are listed below (in thousands): Contract or Notional Amount June 30, 2024 Commitments to extend credit: Adjustable-rate $ 2,332 Fixed-rate 748 Standby letters of credit 1,600 Undisbursed loan funds and unused lines of credit 126,604 Total $ 131,284 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
LEASES | |
Schedule of lease right-of-use assets and lease liabilities | The table below presents the ROU assets and lease liabilities recorded in the consolidated balance sheets at the dates indicated (in thousands): June 30, March 31, Classification in the Leases 2024 2024 consolidated balance sheets Finance lease ROU assets $ 1,182 $ 1,202 Financing lease ROU assets Finance lease liability $ 2,151 $ 2,168 Finance lease liability Finance lease remaining lease term 15.43 years 15.68 years Finance lease discount rate 7.16 % 7.16 % Operating lease ROU assets $ 5,169 $ 5,479 Prepaid expenses and other assets Operating lease liabilities $ 5,450 $ 5,780 Accrued expenses and other liabilities Operating lease weighted-average remaining lease term 5.16 years 5.34 years Operating lease weighted-average discount rate 1.73 % 1.74 % |
Schedule of lease costs for finance and operating leases | The table below presents certain information related to the lease costs for operating leases, which are recorded in occupancy and depreciation in the accompanying consolidated statements of income at the dates indicated (in thousands): Three months ended Three months ended Lease Costs June 30, 2024 June 30, 2023 Finance lease amortization of ROU asset $ 19 $ 19 Finance lease interest on lease liability 39 40 Operating lease costs 283 283 Variable lease costs 52 52 Total lease cost (1) $ 393 $ 394 (1) Income related to sub-lease activity is not significant and not presented herein. |
Schedule of maturities of operating lease liabilities | The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of June 30, 2024 (in thousands): Fiscal Year Ending March 31: Operating Finance Leases Lease Remainder of 2025 $ 1,029 $ 168 2026 1,125 226 2027 1,116 230 2028 899 232 2029 684 232 Thereafter 947 2,479 Total minimum lease payments 5,800 3,567 Less: amount of lease payments representing interest (350) (1,416) Lease liabilities $ 5,450 $ 2,151 |
Schedule of maturities of finance lease liabilities | The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of June 30, 2024 (in thousands): Fiscal Year Ending March 31: Operating Finance Leases Lease Remainder of 2025 $ 1,029 $ 168 2026 1,125 226 2027 1,116 230 2028 899 232 2029 684 232 Thereafter 947 2,479 Total minimum lease payments 5,800 3,567 Less: amount of lease payments representing interest (350) (1,416) Lease liabilities $ 5,450 $ 2,151 |
STOCK PLANS AND STOCK-BASED C_3
STOCK PLANS AND STOCK-BASED COMPENSATION - Stock option activity (Details) | 3 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Balance, beginning of period | shares | 14,310 |
Options exercised | shares | (6,799) |
Balance, end of period | shares | 7,511 |
Weighted Average Exercise Price | |
Balance, beginning of period | $ / shares | $ 2.78 |
Options exercised | $ / shares | 2.78 |
Balance, end of period | $ / shares | $ 2.78 |
STOCK PLANS AND STOCK-BASED C_4
STOCK PLANS AND STOCK-BASED COMPENSATION - Stock options outstanding (Details) | 3 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Stock options fully vested and expected to vest: | |
Number | shares | 7,511 |
Weighted average exercise price | $ / shares | $ 2.78 |
Aggregate intrinsic value (1) | $ | $ 17,000 |
Weighted average contractual term of options (years) | 14 days |
Stock options fully vested and currently exercisable: | |
Number | shares | 7,511 |
Weighted average exercise price | $ / shares | $ 2.78 |
Aggregate intrinsic value (1) | $ | $ 17,000 |
Weighted average contractual term of options (years) | 14 days |
STOCK PLANS AND STOCK-BASED C_5
STOCK PLANS AND STOCK-BASED COMPENSATION - Restricted Stock Activity (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Time Based | ||
Number of Unvested Shares | ||
Balance, beginning of period | 15,779 | 29,977 |
Forfeited | ||
Balance, end of period | 15,779 | 29,977 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 5.72 | $ 6.14 |
Forfeited | ||
Balance, end of period | $ 5.72 | $ 6.14 |
Performance Based | ||
Number of Unvested Shares | ||
Balance, beginning of period | 63,397 | 132,645 |
Forfeited | (3,678) | |
Balance, end of period | 63,397 | 128,967 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 5.68 | $ 6.05 |
Forfeited | 6.30 | |
Balance, end of period | $ 5.68 | $ 6.04 |
Restricted stock | ||
Number of Unvested Shares | ||
Balance, beginning of period | 79,176 | 162,622 |
Forfeited | (3,678) | |
Balance, end of period | 79,176 | 158,944 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 5.69 | $ 6.07 |
Forfeited | 6.30 | |
Balance, end of period | $ 5.69 | $ 6.06 |
STOCK PLANS AND STOCK-BASED C_6
STOCK PLANS AND STOCK-BASED COMPENSATION - Additional information (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jul. 31, 2017 | |
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Stock options outstanding | 0 | 7,511 | 14,310 | |
Stock options exercised (in shares) | 6,799 | |||
Stock Option Plans | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Total intrinsic value of stock options exercised | $ 0 | $ 14,000 | ||
Unrecognized compensation expense | 0 | |||
Stock based Compensation Expense | $ 0 | $ 0 | ||
2003 Stock Option Plan | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Number of stock options outstanding | 0 | |||
Maximum term of stock options granted | 10 years | |||
2017 Plan | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Shares available for grant | 1,532,003 | |||
Number of shares reserved for common stock | 1,800,000 | |||
Minimum | 2003 Stock Option Plan | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Vesting period | 0 years | |||
Maximum | 2003 Stock Option Plan | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Vesting period | 5 years | |||
Employee Stock Option [Member] | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Number of stock options granted | 0 | 0 | ||
Restricted stock | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Unrecognized compensation expense | $ 145,000 | $ 354,000 | ||
Stock based Compensation Expense | $ 26,000 | $ 62,000 | ||
Restricted stock | Weighted average | ||||
STOCK PLANS AND STOCK-BASED COMPENSATION | ||||
Vesting period | 1 year 1 month 9 days | 1 year 14 days |
EARNINGS PER SHARE - Earnings P
EARNINGS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Basic EPS computation: | ||
Numerator-net income (in dollars) | $ 966 | $ 2,843 |
Denominator-weighted average common shares outstanding | 21,111,043 | 21,136,097 |
Basic EPS (in dollars per share) | $ 0.05 | $ 0.13 |
Diluted EPS computation: | ||
Numerator-net income (in dollars) | $ 966 | $ 2,843 |
Denominator-weighted average common shares outstanding | 21,111,043 | 21,136,097 |
Effect of dilutive stock options | 5 | |
Weighted average common shares and common stock equivalents | 21,111,043 | 21,141,184 |
Diluted EPS (in dollars per share) | $ 0.05 | $ 0.13 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
May 05, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Nov. 30, 2022 | |
EARNINGS PER SHARE | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | ||
Repurchase program | ||||
EARNINGS PER SHARE | ||||
Maximum number of common shares to be repurchased | 2,500,000 | |||
Average price | $ 6.34 | |||
Shares repurchased and retired | 394,334 | |||
Shares repurchased and retired value | $ 2.5 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
INVESTMENT SECURITIES | ||
Amortized Cost | $ 158,920 | $ 164,416 |
Gross Unrealized Gains | 12 | 26 |
Gross Unrealized Losses | (21,561) | (21,246) |
Estimated Fair Value | 137,371 | 143,196 |
Municipal securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 41,651 | 41,657 |
Gross Unrealized Gains | 1 | 20 |
Gross Unrealized Losses | (6,867) | (6,541) |
Estimated Fair Value | 34,785 | 35,136 |
Agency securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 44,874 | 47,818 |
Gross Unrealized Losses | (4,060) | (4,241) |
Estimated Fair Value | 40,814 | 43,577 |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 30,677 | 31,424 |
Gross Unrealized Losses | (6,005) | (5,759) |
Estimated Fair Value | 24,672 | 25,665 |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 12,840 | 13,519 |
Gross Unrealized Gains | 6 | 3 |
Gross Unrealized Losses | (921) | (971) |
Estimated Fair Value | 11,925 | 12,551 |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 28,878 | 29,998 |
Gross Unrealized Gains | 5 | 3 |
Gross Unrealized Losses | (3,708) | (3,734) |
Estimated Fair Value | $ 25,175 | $ 26,267 |
INVESTMENT SECURITIES - Held to
INVESTMENT SECURITIES - Held to maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
INVESTMENT SECURITIES | ||
Amortized Cost | $ 225,817 | $ 229,510 |
Gross Unrealized Losses | (33,791) | (33,991) |
Estimated Fair Value | 192,026 | 195,519 |
Municipal securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 10,314 | 10,321 |
Gross Unrealized Losses | (2,892) | (2,789) |
Estimated Fair Value | 7,422 | 7,532 |
Agency securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 54,169 | 54,123 |
Gross Unrealized Losses | (4,281) | (4,522) |
Estimated Fair Value | 49,888 | 49,601 |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 30,922 | 31,752 |
Gross Unrealized Losses | (5,228) | (5,171) |
Estimated Fair Value | 25,694 | 26,581 |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 109,955 | 112,834 |
Gross Unrealized Losses | (18,126) | (18,196) |
Estimated Fair Value | 91,829 | 94,638 |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 20,457 | 20,480 |
Gross Unrealized Losses | (3,264) | (3,313) |
Estimated Fair Value | $ 17,193 | $ 17,167 |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual maturities, Available for sale (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Available for Sale, Amortized Cost | |
Due in one year or less | $ 16,171 |
Due after one year through five years | 42,525 |
Due after five years through ten years | 33,861 |
Due after ten years | 66,363 |
Total, Amortized Cost | 158,920 |
Available for Sale, Estimated Fair Value | |
Due in one year or less | 16,064 |
Due after one year through five years | 37,760 |
Due after five years through ten years | 29,154 |
Due after ten years | 54,393 |
Total, Estimated Fair Value | $ 137,371 |
INVESTMENT SECURITIES - Contr_2
INVESTMENT SECURITIES - Contractual maturities, Held to maturity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Held to Maturity, Amortized Cost | |
Due in one year or less | $ 11,934 |
Due after one year through five years | 39,461 |
Due after five years through ten years | 20,167 |
Due after ten years | 154,255 |
Total, Amortized Cost | 225,817 |
Held to Maturity, Estimated Fair Value | |
Due in one year or less | 11,759 |
Due after one year through five years | 36,333 |
Due after five years through ten years | 16,752 |
Due after ten years | 127,182 |
Total, Estimated Fair Value | $ 192,026 |
INVESTMENT SECURITIES - Fair va
INVESTMENT SECURITIES - Fair value of impaired investment securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | $ 534 | |
Less than 12 months, Unrealized Losses | (1) | |
12 months or longer, Estimated Fair Value | $ 133,307 | 139,466 |
12 months or longer, Unrealized Losses | (21,561) | (21,245) |
Total, Estimated Fair Value | 133,307 | 140,000 |
Total, Unrealized Losses | (21,561) | (21,246) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 192,026 | 195,519 |
12 months or longer, unrealized losses | (33,791) | (33,991) |
Total estimated fair value | 192,026 | 195,519 |
Total, unrealized losses | (33,791) | (33,991) |
Municipal securities | ||
INVESTMENT SECURITIES | ||
12 months or longer, Estimated Fair Value | 32,394 | 32,748 |
12 months or longer, Unrealized Losses | (6,867) | (6,541) |
Total, Estimated Fair Value | 32,394 | 32,748 |
Total, Unrealized Losses | (6,867) | (6,541) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 7,422 | 7,532 |
12 months or longer, unrealized losses | (2,892) | (2,789) |
Total estimated fair value | 7,422 | 7,532 |
Total, unrealized losses | (2,892) | (2,789) |
Agency securities | ||
INVESTMENT SECURITIES | ||
12 months or longer, Estimated Fair Value | 40,814 | 43,577 |
12 months or longer, Unrealized Losses | (4,060) | (4,241) |
Total, Estimated Fair Value | 40,814 | 43,577 |
Total, Unrealized Losses | (4,060) | (4,241) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 49,888 | 49,601 |
12 months or longer, unrealized losses | (4,281) | (4,522) |
Total estimated fair value | 49,888 | 49,601 |
Total, unrealized losses | (4,281) | (4,522) |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
12 months or longer, Estimated Fair Value | 24,672 | 25,665 |
12 months or longer, Unrealized Losses | (6,005) | (5,759) |
Total, Estimated Fair Value | 24,672 | 25,665 |
Total, Unrealized Losses | (6,005) | (5,759) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 25,694 | 26,581 |
12 months or longer, unrealized losses | (5,228) | (5,171) |
Total estimated fair value | 25,694 | 26,581 |
Total, unrealized losses | (5,228) | (5,171) |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
12 months or longer, Estimated Fair Value | 11,101 | 12,073 |
12 months or longer, Unrealized Losses | (921) | (971) |
Total, Estimated Fair Value | 11,101 | 12,073 |
Total, Unrealized Losses | (921) | (971) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 91,829 | 94,638 |
12 months or longer, unrealized losses | (18,126) | (18,196) |
Total estimated fair value | 91,829 | 94,638 |
Total, unrealized losses | (18,126) | (18,196) |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 534 | |
Less than 12 months, Unrealized Losses | (1) | |
12 months or longer, Estimated Fair Value | 24,326 | 25,403 |
12 months or longer, Unrealized Losses | (3,708) | (3,733) |
Total, Estimated Fair Value | 24,326 | 25,937 |
Total, Unrealized Losses | (3,708) | (3,734) |
Debt Securities, Held to maturity | ||
12 months or longer, estimated fair value | 17,193 | 17,167 |
12 months or longer, unrealized losses | (3,264) | (3,313) |
Total estimated fair value | 17,193 | 17,167 |
Total, unrealized losses | $ (3,264) | $ (3,313) |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
INVESTMENT SECURITIES | |||
Proceeds from the sale of investment securities | $ 0 | $ 0 | |
Gross realized gains on sales of investment securities | 0 | $ 0 | |
Available for sale with amortized cost | 158,920 | $ 164,416 | |
Available for sale, estimated fair value | 137,371 | 143,196 | |
Held to maturity, estimated fair value | 192,026 | 195,519 | |
Asset Pledged as Collateral. | |||
INVESTMENT SECURITIES | |||
Available for sale with amortized cost | 2,500 | 2,600 | |
Available for sale, estimated fair value | 2,300 | 2,400 | |
Held to maturity at amortized cost | 11,000 | 11,200 | |
Held to maturity, estimated fair value | 9,100 | 9,300 | |
Asset Pledged as Collateral. | FHLB and FRB Borrowing Arrangements | |||
INVESTMENT SECURITIES | |||
Held to maturity at amortized cost | 148,600 | 151,200 | |
Held to maturity, estimated fair value | $ 123,600 | $ 126,100 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans receivable, excluding loans held for sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
LOANS RECEIVABLE | ||||
Total loans | $ 1,045,065 | $ 1,024,013 | ||
Less: ACL for loans | 15,364 | 15,364 | $ 15,343 | $ 15,309 |
Loans receivable, net | 1,029,701 | 1,008,649 | ||
Commercial and Industrial | Commercial Business | ||||
LOANS RECEIVABLE | ||||
Total loans | 238,493 | 229,404 | ||
Commercial Real Estate Portfolio Segment | ||||
LOANS RECEIVABLE | ||||
Total loans | 942,166 | 925,907 | ||
Commercial Real Estate Portfolio Segment | Commercial Business | ||||
LOANS RECEIVABLE | ||||
Total loans | 238,493 | 229,404 | ||
Less: ACL for loans | 5,141 | 5,280 | 5,215 | 3,123 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||||
LOANS RECEIVABLE | ||||
Total loans | 578,115 | 583,501 | ||
Less: ACL for loans | 7,303 | 7,391 | 7,205 | 8,894 |
Commercial Real Estate Portfolio Segment | Land | ||||
LOANS RECEIVABLE | ||||
Total loans | 6,322 | 5,693 | ||
Less: ACL for loans | 120 | 106 | 123 | 93 |
Commercial Real Estate Portfolio Segment | Multi-Family | ||||
LOANS RECEIVABLE | ||||
Total loans | 79,278 | 70,771 | ||
Less: ACL for loans | 402 | 367 | 293 | 798 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||||
LOANS RECEIVABLE | ||||
Total loans | 39,958 | 36,538 | ||
Less: ACL for loans | 723 | 636 | 830 | 764 |
Consumer | ||||
LOANS RECEIVABLE | ||||
Total loans | 102,899 | 98,106 | ||
Less: ACL for loans | 1,675 | 1,584 | $ 1,677 | $ 1,127 |
Consumer | Real estate one-to-four family | ||||
LOANS RECEIVABLE | ||||
Total loans | 96,083 | 96,366 | ||
Consumer | Other installment | ||||
LOANS RECEIVABLE | ||||
Total loans | $ 6,816 | $ 1,740 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk category of bank loans by year of origination (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Origination year | |||
2025/2024 | $ 15,276 | $ 68,625 | |
2024/2023 | 76,786 | 169,408 | |
2023/2022 | 173,329 | 338,864 | |
2022/2021 | 335,937 | 126,861 | |
2021/2020 | 124,239 | 84,175 | |
Prior | 289,320 | 215,697 | |
Revolving Loans | 30,178 | 20,383 | |
Total Loans Receivable | 1,045,065 | 1,024,013 | |
Gross write-offs | |||
2024/2023 | 11 | ||
Prior | 2 | ||
Revolving Loans | 1 | ||
Total Loans Receivable | 1 | $ 11 | 13 |
Commercial and Industrial | Commercial Business | |||
Origination year | |||
2025/2024 | 1,951 | 14,126 | |
2024/2023 | 17,940 | 63,838 | |
2023/2022 | 62,724 | 85,864 | |
2022/2021 | 84,322 | 28,119 | |
2021/2020 | 26,553 | 17,431 | |
Prior | 28,789 | 12,701 | |
Revolving Loans | 16,214 | 7,325 | |
Total Loans Receivable | 238,493 | 229,404 | |
Commercial Real Estate Portfolio Segment | |||
Origination year | |||
Total Loans Receivable | 942,166 | 925,907 | |
Commercial Real Estate Portfolio Segment | Commercial Business | |||
Origination year | |||
Total Loans Receivable | 238,493 | 229,404 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Origination year | |||
2025/2024 | 5,871 | 36,636 | |
2024/2023 | 35,980 | 70,599 | |
2023/2022 | 70,010 | 147,912 | |
2022/2021 | 146,863 | 89,662 | |
2021/2020 | 88,855 | 53,424 | |
Prior | 230,536 | 185,268 | |
Total Loans Receivable | 578,115 | 583,501 | |
Commercial Real Estate Portfolio Segment | Land | |||
Origination year | |||
2025/2024 | 2,361 | ||
2024/2023 | 3,037 | 2,695 | |
2023/2022 | 2,671 | 94 | |
2022/2021 | 92 | ||
2021/2020 | 106 | ||
Prior | 522 | 437 | |
Total Loans Receivable | 6,322 | 5,693 | |
Commercial Real Estate Portfolio Segment | Multi-Family | |||
Origination year | |||
2025/2024 | 20 | 970 | |
2024/2023 | 965 | 21,643 | |
2023/2022 | 26,319 | 32,003 | |
2022/2021 | 36,246 | 4,841 | |
2021/2020 | 4,632 | 8,823 | |
Prior | 11,096 | 2,491 | |
Total Loans Receivable | 79,278 | 70,771 | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | |||
Origination year | |||
2025/2024 | 2,261 | 14,114 | |
2024/2023 | 18,423 | 10,078 | |
2023/2022 | 11,118 | 12,346 | |
2022/2021 | 8,156 | ||
Total Loans Receivable | 39,958 | 36,538 | |
Consumer | |||
Origination year | |||
Total Loans Receivable | 102,899 | 98,106 | |
Gross write-offs | |||
Total Loans Receivable | 1 | $ 11 | |
Consumer | Real estate one-to-four family | |||
Origination year | |||
2023/2022 | 60,447 | ||
2022/2021 | 60,083 | 4,164 | |
2021/2020 | 4,134 | 4,364 | |
Prior | 18,354 | 14,792 | |
Revolving Loans | 13,512 | 12,599 | |
Total Loans Receivable | 96,083 | 96,366 | |
Consumer | Other installment | |||
Origination year | |||
2025/2024 | 5,173 | 418 | |
2024/2023 | 441 | 555 | |
2023/2022 | 487 | 198 | |
2022/2021 | 175 | 75 | |
2021/2020 | 65 | 27 | |
Prior | 23 | 8 | |
Revolving Loans | 452 | 459 | |
Total Loans Receivable | 6,816 | 1,740 | |
Gross write-offs | |||
2024/2023 | 11 | ||
Prior | 2 | ||
Revolving Loans | 1 | ||
Total Loans Receivable | 1 | 13 | |
Pass | |||
Origination year | |||
2025/2024 | 15,273 | 67,311 | |
2024/2023 | 76,786 | 165,301 | |
2023/2022 | 169,066 | 337,234 | |
2022/2021 | 334,352 | 126,861 | |
2021/2020 | 123,539 | 83,654 | |
Prior | 261,747 | 188,352 | |
Revolving Loans | 26,376 | 17,885 | |
Total Loans Receivable | 1,007,139 | 986,598 | |
Pass | Commercial and Industrial | Commercial Business | |||
Origination year | |||
2025/2024 | 1,951 | 14,126 | |
2024/2023 | 17,940 | 63,838 | |
2023/2022 | 62,724 | 85,131 | |
2022/2021 | 83,628 | 28,119 | |
2021/2020 | 25,872 | 16,945 | |
Prior | 27,680 | 12,411 | |
Revolving Loans | 12,412 | 4,827 | |
Total Loans Receivable | 232,207 | 225,397 | |
Pass | Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Origination year | |||
2025/2024 | 5,871 | 36,116 | |
2024/2023 | 35,980 | 66,847 | |
2023/2022 | 66,285 | 147,015 | |
2022/2021 | 145,972 | 89,662 | |
2021/2020 | 88,855 | 53,424 | |
Prior | 204,326 | 158,311 | |
Total Loans Receivable | 547,289 | 551,375 | |
Pass | Commercial Real Estate Portfolio Segment | Land | |||
Origination year | |||
2025/2024 | 2,361 | ||
2024/2023 | 3,037 | 2,340 | |
2023/2022 | 2,319 | 94 | |
2022/2021 | 92 | ||
2021/2020 | 106 | ||
Prior | 522 | 437 | |
Total Loans Receivable | 5,970 | 5,338 | |
Pass | Commercial Real Estate Portfolio Segment | Multi-Family | |||
Origination year | |||
2025/2024 | 20 | 970 | |
2024/2023 | 965 | 21,643 | |
2023/2022 | 26,133 | 32,003 | |
2022/2021 | 36,246 | 4,841 | |
2021/2020 | 4,613 | 8,788 | |
Prior | 10,876 | 2,429 | |
Total Loans Receivable | 78,853 | 70,674 | |
Pass | Commercial Real Estate Portfolio Segment | Real Estate Construction | |||
Origination year | |||
2025/2024 | 2,258 | 13,320 | |
2024/2023 | 18,423 | 10,078 | |
2023/2022 | 11,118 | 12,346 | |
2022/2021 | 8,156 | ||
Total Loans Receivable | 39,955 | 35,744 | |
Pass | Consumer | Real estate one-to-four family | |||
Origination year | |||
2023/2022 | 60,447 | ||
2022/2021 | 60,083 | 4,164 | |
2021/2020 | 4,134 | 4,364 | |
Prior | 18,320 | 14,756 | |
Revolving Loans | 13,512 | 12,599 | |
Total Loans Receivable | 96,049 | 96,330 | |
Pass | Consumer | Other installment | |||
Origination year | |||
2025/2024 | 5,173 | 418 | |
2024/2023 | 441 | 555 | |
2023/2022 | 487 | 198 | |
2022/2021 | 175 | 75 | |
2021/2020 | 65 | 27 | |
Prior | 23 | 8 | |
Revolving Loans | 452 | 459 | |
Total Loans Receivable | 6,816 | 1,740 | |
Special Mention | |||
Origination year | |||
2025/2024 | 3 | 794 | |
2024/2023 | 4,107 | ||
2023/2022 | 4,263 | 1,630 | |
2022/2021 | 1,585 | ||
2021/2020 | 700 | 521 | |
Prior | 27,345 | 27,142 | |
Revolving Loans | 3,802 | 2,498 | |
Total Loans Receivable | 37,698 | 36,692 | |
Special Mention | Commercial and Industrial | Commercial Business | |||
Origination year | |||
2023/2022 | 733 | ||
2022/2021 | 694 | ||
2021/2020 | 681 | 486 | |
Prior | 1,056 | 232 | |
Revolving Loans | 3,802 | 2,498 | |
Total Loans Receivable | 6,233 | 3,949 | |
Special Mention | Commercial Real Estate Portfolio Segment | |||
Origination year | |||
2024/2023 | 3,752 | ||
2023/2022 | 897 | ||
Prior | 26,878 | ||
Total Loans Receivable | 31,527 | ||
Special Mention | Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Origination year | |||
2023/2022 | 3,725 | ||
2022/2021 | 891 | ||
Prior | 26,137 | ||
Total Loans Receivable | 30,753 | ||
Special Mention | Commercial Real Estate Portfolio Segment | Land | |||
Origination year | |||
2024/2023 | 355 | ||
2023/2022 | 352 | ||
Total Loans Receivable | 352 | 355 | |
Special Mention | Commercial Real Estate Portfolio Segment | Multi-Family | |||
Origination year | |||
2023/2022 | 186 | ||
2021/2020 | 19 | 35 | |
Prior | 152 | 32 | |
Total Loans Receivable | 357 | 67 | |
Special Mention | Commercial Real Estate Portfolio Segment | Real Estate Construction | |||
Origination year | |||
2025/2024 | 3 | 794 | |
Total Loans Receivable | 3 | 794 | |
Substandard | |||
Origination year | |||
2025/2024 | 520 | ||
Prior | 228 | 203 | |
Total Loans Receivable | 228 | 723 | |
Substandard | Commercial and Industrial | Commercial Business | |||
Origination year | |||
Prior | 53 | 58 | |
Total Loans Receivable | 53 | 58 | |
Substandard | Commercial Real Estate Portfolio Segment | |||
Origination year | |||
2025/2024 | 520 | ||
Prior | 79 | ||
Total Loans Receivable | 599 | ||
Substandard | Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Origination year | |||
Prior | 73 | ||
Total Loans Receivable | 73 | ||
Substandard | Commercial Real Estate Portfolio Segment | Multi-Family | |||
Origination year | |||
Prior | 68 | 30 | |
Total Loans Receivable | 68 | 30 | |
Substandard | Consumer | Real estate one-to-four family | |||
Origination year | |||
Prior | 34 | 36 | |
Total Loans Receivable | $ 34 | $ 36 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Reconciliation of the allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Reconciliation of the allowance for loan losses | |||
Beginning balance | $ 15,364 | $ 15,309 | $ 15,309 |
Charge-offs | (1) | (11) | (13) |
Recoveries | 1 | 3 | |
Ending balance | 15,364 | 15,343 | 15,364 |
Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 42 | 42 | |
Commercial Real Estate Portfolio Segment | Commercial Business | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 5,280 | 3,123 | 3,123 |
(Recapture of) provision for credit losses | (139) | 208 | |
Ending balance | 5,141 | 5,215 | 5,280 |
Commercial Real Estate Portfolio Segment | Commercial Business | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 1,884 | 1,884 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 7,391 | 8,894 | 8,894 |
(Recapture of) provision for credit losses | (88) | (195) | |
Ending balance | 7,303 | 7,205 | 7,391 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | (1,494) | (1,494) | |
Commercial Real Estate Portfolio Segment | Land | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 106 | 93 | 93 |
(Recapture of) provision for credit losses | 14 | (10) | |
Ending balance | 120 | 123 | 106 |
Commercial Real Estate Portfolio Segment | Land | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 40 | 40 | |
Commercial Real Estate Portfolio Segment | Multi-Family | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 367 | 798 | 798 |
(Recapture of) provision for credit losses | 35 | (13) | |
Ending balance | 402 | 293 | 367 |
Commercial Real Estate Portfolio Segment | Multi-Family | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | (492) | (492) | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 636 | 764 | 764 |
(Recapture of) provision for credit losses | 87 | (65) | |
Ending balance | 723 | 830 | 636 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 131 | 131 | |
Consumer | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 1,584 | 1,127 | 1,127 |
(Recapture of) provision for credit losses | 91 | 75 | |
Charge-offs | (1) | (11) | |
Recoveries | 1 | 3 | |
Ending balance | $ 1,675 | 1,677 | 1,584 |
Consumer | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 483 | 483 | |
Unallocated | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | 510 | 510 | |
Unallocated | Adjustment | ASU 2016-13 | |||
Reconciliation of the allowance for loan losses | |||
Beginning balance | $ (510) | $ (510) |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Analysis of loans by aging category (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | $ 160 | $ 173 |
Total Past Due and Non-accrual | 10,692 | 1,957 |
Total loans | 1,045,065 | 1,024,013 |
30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 10,231 | 1,779 |
90 Days and Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 301 | 5 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,034,373 | 1,022,056 |
Commercial and Industrial | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 53 | 58 |
Total Past Due and Non-accrual | 2,165 | 1,841 |
Total loans | 238,493 | 229,404 |
Commercial and Industrial | Commercial Business | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,811 | 1,778 |
Commercial and Industrial | Commercial Business | 90 Days and Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 301 | 5 |
Commercial and Industrial | Commercial Business | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 236,328 | 227,563 |
Commercial Real Estate Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 942,166 | 925,907 |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 238,493 | 229,404 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 73 | 79 |
Total Past Due and Non-accrual | 8,482 | 79 |
Total loans | 578,115 | 583,501 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 8,409 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 569,633 | 583,422 |
Commercial Real Estate Portfolio Segment | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,322 | 5,693 |
Commercial Real Estate Portfolio Segment | Land | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,322 | 5,693 |
Commercial Real Estate Portfolio Segment | Multi-Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 79,278 | 70,771 |
Commercial Real Estate Portfolio Segment | Multi-Family | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 79,278 | 70,771 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 39,958 | 36,538 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 39,958 | 36,538 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 34 | 36 |
Total Past Due and Non-accrual | 45 | 37 |
Total loans | 102,899 | 98,106 |
Consumer | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11 | 1 |
Consumer | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 102,854 | $ 98,069 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Additional information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) loan | Mar. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Deferred loan fees | $ 4,600,000 | $ 4,700,000 | $ 4,600,000 | ||
Discount On Loans Receivable | 1,200,000 | 1,300,000 | 1,200,000 | ||
Premiums On Loans Receivable. | 1,900,000 | 1,900,000 | 1,900,000 | ||
Collateral dependent loans | $ 1,029,701,000 | 1,008,649,000 | $ 1,029,701,000 | ||
Percentage Of Loans And Extensions Of Credit Outstanding | 15% | ||||
Number of loans to one borrower over regulatory limit | loan | 0 | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | ||||
Financing receivable, excluding accrued interest, modified, subsequent default | 0 | ||||
Allowance for credit losses (in dollars) | 15,364,000 | 15,364,000 | $ 15,343,000 | $ 15,364,000 | $ 15,309,000 |
Non-accrual loans with no ACL | 126,000 | 126,000 | |||
Non-accrual loans with ACL | 34,000 | 34,000 | |||
Non-accruals, Allowance | 1,000 | 1,000 | |||
Interest income foregone on non-accrual loans | 2,000 | 10,000 | 3,000 | ||
Total loans | 1,045,065,000 | 1,024,013,000 | 1,045,065,000 | ||
30 To 89 Days Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 10,231,000 | 1,779,000 | 10,231,000 | ||
Adjustment | ASU 2016-13 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | 42,000 | ||||
Fully Guaranteed SBA Or USDA Loans | 30 To 89 Days Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 722,000 | 722,000 | |||
Asset Pledged as Collateral | FHLB and FRB Borrowing Arrangements | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collateral dependent loans | 784,000,000 | 784,000,000 | |||
Asset Pledged as Collateral | Financing receivable | Commercial Business | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collateral dependent loans | 53,000 | 53,000 | |||
Asset Pledged as Collateral | Financing receivable | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Collateral dependent loans | 73,000 | 73,000 | |||
Commercial and Industrial | Commercial Business | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 238,493,000 | 229,404,000 | 238,493,000 | ||
Commercial and Industrial | Commercial Business | 30 To 89 Days Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 1,811,000 | 1,778,000 | 1,811,000 | ||
Commercial Real Estate Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 942,166,000 | 925,907,000 | 942,166,000 | ||
Commercial Real Estate Portfolio Segment | Commercial Business | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | 5,141,000 | 5,280,000 | 5,215,000 | 5,141,000 | 3,123,000 |
Total loans | 238,493,000 | 229,404,000 | 238,493,000 | ||
Commercial Real Estate Portfolio Segment | Commercial Business | Adjustment | ASU 2016-13 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | 1,884,000 | ||||
Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | 7,303,000 | 7,391,000 | 7,205,000 | 7,303,000 | 8,894,000 |
Total loans | 578,115,000 | 583,501,000 | 578,115,000 | ||
Commercial Real Estate Portfolio Segment | Commercial Real Estate | 30 To 89 Days Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 8,409,000 | 8,409,000 | |||
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Adjustment | ASU 2016-13 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | (1,494,000) | ||||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | 1,675,000 | 1,584,000 | $ 1,677,000 | 1,675,000 | 1,127,000 |
Total loans | 102,899,000 | 98,106,000 | 102,899,000 | ||
Consumer | 30 To 89 Days Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | 11,000 | 1,000 | 11,000 | ||
Consumer | Adjustment | ASU 2016-13 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for credit losses (in dollars) | $ 483,000 | ||||
Consumer | Real estate one-to-four family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans | $ 96,083,000 | $ 96,366,000 | $ 96,083,000 |
GOODWILL (Details)
GOODWILL (Details) $ in Thousands | 3 Months Ended | |
Oct. 31, 2023 USD ($) | Jun. 30, 2024 item | |
GOODWILL | ||
Number of Reporting Units | item | 2 | |
Goodwill impairment | $ | $ 0 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
FEDERAL HOME LOAN BANK ADVANCES | ||
FHLB advances | $ 113,504 | $ 88,304 |
Weighted average interest rate on FHLB advances | 5.60% | 5.40% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
FEDERAL HOME LOAN BANK ADVANCES | ||
Loans pledged as collateral | $ 1,029,701 | $ 1,008,649 |
Assets pledged as collateral | ||
FEDERAL HOME LOAN BANK ADVANCES | ||
Percentage of total assets equal to bank credit line from FHLB | 45% | |
Bank additional borrowing capacity from FHLB | $ 164,400 | |
Assets pledged as collateral | FHLB advances | ||
FEDERAL HOME LOAN BANK ADVANCES | ||
Loans pledged as collateral | $ 478,100 |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
JUNIOR SUBORDINATED DEBENTURES | ||
Amount Outstanding | $ 27,836 | |
Fair value adjustment | (810) | |
Total Debentures | $ 27,026 | $ 27,004 |
Riverview Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Issuance Date | Dec. 01, 2005 | |
Amount Outstanding | $ 7,217 | |
Rate Type | Variable | |
Initial Rate | 5.88% | |
Current Rate | 6.96% | |
Maturity Date | 2036-03 | |
Riverview Bancorp Statutory Trust II | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Issuance Date | Jun. 01, 2007 | |
Amount Outstanding | $ 15,464 | |
Rate Type | Variable | |
Initial Rate | 7.03% | |
Current Rate | 6.95% | |
Maturity Date | 2037-09 | |
Merchants Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Issuance Date | Jun. 01, 2003 | |
Amount Outstanding | $ 5,155 | |
Rate Type | Variable | |
Initial Rate | 4.16% | |
Current Rate | 8.70% | |
Maturity Date | 2033-06 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES - Additional Information (Details) | 3 Months Ended | |
Jun. 30, 2024 USD ($) item | Mar. 31, 2024 USD ($) | |
JUNIOR SUBORDINATED DEBENTURES | ||
Maximum number of consecutive quarters for deferred payment of each debenture | item | 20 | |
Debentures issued to grantor trusts | $ 27,000,000 | $ 27,000,000 |
Common securities issued by grantor trusts | $ 836,000 | $ 836,000 |
Riverview Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month Chicago Mercantile Exchange (“CME”) Term SOFR | |
Interest basis spread on variable rate | 1.36% | |
Riverview Bancorp Statutory Trust II | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month CME Term SOFR | |
Interest basis spread on variable rate | 1.35% | |
Merchants Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month CME Term SOFR | |
Interest basis spread on variable rate | 3.10% |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers of assets from level 1 to level 2 | $ 0 | $ 0 |
Transfers of assets from level 2 to level 1 | 0 | 0 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 137,371 | 143,196 |
Recurring basis | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 34,785 | 35,136 |
Recurring basis | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 40,814 | 43,577 |
Recurring basis | Real estate mortgage investment conduits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 24,672 | 25,665 |
Recurring basis | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 11,925 | 12,551 |
Recurring basis | Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 25,175 | 26,267 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 137,371 | 143,196 |
Recurring basis | Level 2 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 34,785 | 35,136 |
Recurring basis | Level 2 | Agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 40,814 | 43,577 |
Recurring basis | Level 2 | Real estate mortgage investment conduits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 24,672 | 25,665 |
Recurring basis | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 11,925 | 12,551 |
Recurring basis | Level 2 | Other mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 25,175 | 26,267 |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nonrecurring assets measured at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities held to maturity | $ 192,026 | $ 195,519 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 137,371 | 143,196 |
Investment securities held to maturity | 225,817 | 229,510 |
Carrying Value | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 27,804 | 23,642 |
Carrying Value | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,029,701 | 1,008,649 |
Carrying Value | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,061 | 4,927 |
Carrying Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 204,423 | 190,972 |
Carrying Value | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 113,504 | 88,304 |
Carrying Value | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 27,026 | 27,004 |
Total Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 137,371 | 143,196 |
Investment securities held to maturity | 192,026 | 195,519 |
Total Estimated Fair Value | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 27,804 | 23,642 |
Total Estimated Fair Value | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 928,275 | 909,254 |
Total Estimated Fair Value | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,061 | 4,927 |
Total Estimated Fair Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 202,614 | 188,972 |
Total Estimated Fair Value | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 113,243 | 88,101 |
Total Estimated Fair Value | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 19,465 | 19,327 |
Level 1 | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 27,804 | 23,642 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 137,371 | 143,196 |
Investment securities held to maturity | 192,026 | 195,519 |
Level 2 | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,061 | 4,927 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 202,614 | 188,972 |
Level 2 | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 113,243 | 88,101 |
Level 3 | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 928,275 | 909,254 |
Level 3 | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 19,465 | $ 19,327 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer [Line Items] | ||
Income from BOLI | $ 211 | $ 200 |
FHLMC loan servicing fees | 19 | 22 |
Total non-interest income, net | 3,367 | 3,285 |
Contract with customer liability | 0 | |
Revenue remaining performance obligation | 0 | 0 |
Asset management fees | ||
Revenue from External Customer [Line Items] | ||
Non-interest income | 1,558 | 1,381 |
Debit card and ATM fees | ||
Revenue from External Customer [Line Items] | ||
Non-interest income | 821 | 847 |
Deposit related fees | ||
Revenue from External Customer [Line Items] | ||
Non-interest income | 461 | 453 |
Loan related fees | ||
Revenue from External Customer [Line Items] | ||
Non-interest income | 88 | 111 |
Other, net | ||
Revenue from External Customer [Line Items] | ||
Non-interest income | $ 209 | $ 271 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Significant Off-balance Sheet Commitments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Total | $ 131,284 |
Commitments to extend credit | Adjustable-rate | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Total | 2,332 |
Commitments to extend credit | Fixed-rate | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Total | 748 |
Standby letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Total | 1,600 |
Undisbursed loan funds and unused lines of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Total | $ 126,604 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Loss Contingencies [Line Items] | ||
Threshold limit for honoring of commitments | 45 days | |
Loans under warranty | $ 30,600,000 | |
Allowance for FHLMC loans | 12,000 | |
Settlement of the litigation, final settlement | $ 1,200,000 | |
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 2,300,000 |
LEASES - Lease Right-of-use Ass
LEASES - Lease Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
LEASES | ||
Finance lease ROU assets | $ 1,182 | $ 1,202 |
Finance lease liability | $ 2,151 | $ 2,168 |
Finance lease remaining lease term | 15 years 5 months 4 days | 15 years 8 months 4 days |
Finance lease discount rate | 7.16% | 7.16% |
Operating lease ROU assets | $ 5,169 | $ 5,479 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets. | Prepaid Expense and Other Assets. |
Operating lease liabilities | $ 5,450 | $ 5,780 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities, Total | Accrued Liabilities and Other Liabilities, Total |
Operating lease weighted-average remaining lease term | 5 years 1 month 28 days | 5 years 4 months 2 days |
Operating lease weighted-average discount rate | 1.73% | 1.74% |
LEASES - Lease Costs for Operat
LEASES - Lease Costs for Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
LEASES | ||
Finance lease amortization of ROU asset | $ 19 | $ 19 |
Finance lease interest on lease liability | 39 | 40 |
Operating lease costs | 283 | 283 |
Variable lease costs | 52 | 52 |
Total lease cost | $ 393 | $ 394 |
LEASES - Undiscounted Cash Flow
LEASES - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Operating Leases | ||
Remainder of Fiscal 2025 | $ 1,029 | |
2026 | 1,125 | |
2027 | 1,116 | |
2028 | 899 | |
2029 | 684 | |
Thereafter | 947 | |
Total minimum lease payments | 5,800 | |
Less: amount of lease payment representing interest | (350) | |
Lease liabilities | 5,450 | $ 5,780 |
Finance Lease | ||
Remainder of Fiscal 2025 | 168 | |
2026 | 226 | |
2027 | 230 | |
2028 | 232 | |
2029 | 232 | |
Thereafter | 2,479 | |
Total minimum lease payments | 3,567 | |
Less: amount of lease payment representing interest | (1,416) | |
Lease liabilities | $ 2,151 | $ 2,168 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
LEASES | ||
Operating lease | $ 347,000 | $ 341,000 |
ROU assets obtained in exchange for operating lease liabilities | $ 0 | $ 0 |