Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Jun. 14, 2023 | Sep. 30, 2022 | |
Document and Entity Information: | |||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Annual Report | true | ||
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, Par Value $0.01 per share | ||
Trading Symbol | RVSB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 21,118,086 | ||
Auditor Name | Delap LLP | ||
Auditor Firm ID | 116 | ||
Auditor Location | Lake Oswego, Oregon | ||
Entity Central Index Key | 0001041368 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 136,570,288 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
ASSETS | ||
Cash and cash equivalents (including interest-earning accounts of $10,397 and $224,589) | $ 22,044 | $ 241,424 |
Certificates of deposit held for investment | 249 | 249 |
Investment securities: | ||
Available for sale, at estimated fair value | 211,499 | 165,782 |
Held to maturity, at amortized cost (estimated fair value of $210,214 and $236,029) | 243,843 | 253,100 |
Loans receivable (net of allowance for loan losses of $15,309 and $14,523) | 993,547 | |
Loans receivable (net of allowance for loan losses of $15,309 and $14,523) | 975,885 | |
Prepaid expenses and other assets | 15,950 | 12,396 |
Accrued interest receivable | 4,790 | 4,650 |
Federal Home Loan Bank ("FHLB") stock , at cost | 6,867 | 2,019 |
Premises and equipment, net | 20,119 | 17,166 |
Financing lease right-of-use ("ROU") assets | 1,278 | 1,355 |
Deferred income taxes, net | 10,286 | 7,501 |
Mortgage servicing rights, net | 34 | |
Goodwill | 27,076 | 27,076 |
Core deposit intangible ("CDI"), net | 379 | 495 |
Bank owned life insurance ("BOLI") | 31,785 | 30,964 |
TOTAL ASSETS | 1,589,712 | 1,740,096 |
LIABILITIES: | ||
Deposits | 1,265,217 | 1,533,878 |
Accrued expenses and other liabilities | 15,730 | 19,298 |
Advance payments by borrowers for taxes and insurance | 625 | 555 |
FHLB advances | 123,754 | |
Junior subordinated debentures | 26,918 | 26,833 |
Finance lease liability | 2,229 | 2,283 |
Total liabilities | 1,434,473 | 1,582,847 |
COMMITMENTS AND CONTINGENCIES (See Note 17) | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, $.01 par value; 50,000,000 shares authorized March 31, 2023 - 21,221,960 shares issued and outstanding March 31, 2022 - 22,155,636 shares issued and 22,127,396 outstanding | 212 | 221 |
Additional paid-in capital | 55,511 | 62,048 |
Retained earnings | 117,826 | 104,931 |
Accumulated other comprehensive loss | (18,310) | (9,951) |
Total shareholders' equity | 155,239 | 157,249 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,589,712 | $ 1,740,096 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
Interest-earning accounts included in cash (in dollars) | $ 10,397 | $ 224,589 |
Fair value of mortgage-backed securities held to maturity (in dollars) | 210,214 | 236,029 |
Allowance for loan losses (in dollars) | $ 15,309 | $ 14,523 |
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 | 21,221,960 | 22,155,636 |
Common stock, shares outstanding | 22,127,396 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
INTEREST AND DIVIDEND INCOME: | |||
Interest and fees on loans receivable | $ 44,744 | $ 44,079 | $ 45,498 |
Interest on investment securities - taxable | 8,784 | 5,001 | 2,422 |
Interest on investment securities - nontaxable | 262 | 237 | 129 |
Other interest and dividends | 1,876 | 508 | 295 |
Total interest and dividend income | 55,666 | 49,825 | 48,344 |
INTEREST EXPENSE: | |||
Interest on deposits | 1,502 | 1,424 | 2,544 |
Interest on borrowings | 2,558 | 776 | 883 |
Total interest expense | 4,060 | 2,200 | 3,427 |
Net interest income | 51,606 | 47,625 | 44,917 |
Provision for (recapture of) loan losses | 750 | (4,625) | 6,300 |
Net interest income after provision for (recapture of) loan losses | 50,856 | 52,250 | 38,617 |
NON-INTEREST INCOME: | |||
BOLI | 821 | 800 | 813 |
Other, net | 277 | 228 | 249 |
Total non-interest income, net | 12,194 | 12,744 | 11,090 |
NON-INTEREST EXPENSE: | |||
Salaries and employee benefits | 23,982 | 23,635 | 22,570 |
Occupancy and depreciation | 6,171 | 5,624 | 5,780 |
Data processing | 2,722 | 2,940 | 2,662 |
Amortization of CDI | 116 | 124 | 140 |
Advertising and marketing | 923 | 614 | 466 |
FDIC insurance premium | 534 | 439 | 319 |
State and local taxes | 896 | 812 | 794 |
Telecommunications | 204 | 197 | 295 |
Professional fees | 1,201 | 1,235 | 1,231 |
(Gain) loss on sale of premises and equipment, net | (993) | 14 | |
Other | 2,622 | 2,091 | 1,983 |
Total non-interest expense | 39,371 | 36,718 | 36,254 |
INCOME BEFORE INCOME TAXES | 23,679 | 28,276 | 13,453 |
PROVISION FOR INCOME TAXES | 5,610 | 6,456 | 2,981 |
NET INCOME | $ 18,069 | $ 21,820 | $ 10,472 |
Earnings per common share: | |||
Basic | $ 0.84 | $ 0.98 | $ 0.47 |
Diluted | $ 0.83 | $ 0.98 | $ 0.47 |
Weighted average number of common shares outstanding: | |||
Basic | 21,637,526 | 22,213,029 | 22,296,195 |
Diluted | 21,646,101 | 22,224,947 | 22,312,831 |
Fees and service charges | |||
NON-INTEREST INCOME: | |||
Non-interest income | $ 6,362 | $ 7,109 | $ 6,382 |
Asset management fees. | |||
NON-INTEREST INCOME: | |||
Non-interest income | $ 4,734 | 4,107 | $ 3,646 |
BOLI Death Benefit In Excess Of Cash Surrender Value | |||
NON-INTEREST INCOME: | |||
BOLI death benefit in excess of cash surrender value | $ 500 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 18,069 | $ 21,820 | $ 10,472 |
Other comprehensive loss: | |||
Net unrealized holding losses from available for sale investment securities arising during the period, net of tax of $2,641, $3,091, and $713, respectively | (8,359) | (9,791) | (2,259) |
Total comprehensive income, net | $ 9,710 | $ 12,029 | $ 8,213 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Tax effect of unrealized holding gain from available for sale securities | $ 2,641 | $ 3,091 | $ 713 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Mar. 31, 2020 | $ 225 | $ 64,649 | $ 81,870 | $ 2,099 | $ 148,843 |
Balance (in shares) at Mar. 31, 2020 | 22,544,285 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 10,472 | 10,472 | |||
Cash dividend on common stock | (4,461) | (4,461) | |||
Exercise of stock options | $ 1 | 49 | $ 50 | ||
Exercise of stock options (in shares) | 20,000 | 20,000 | |||
Stock repurchased | $ (3) | (1,444) | $ (1,447) | ||
Stock repurchased (in shares) | (295,900) | ||||
Restricted stock grants (in shares) | 90,763 | ||||
Restricted stock forfeited (in shares) | (7,913) | ||||
Stock-based compensation expense | 396 | 396 | |||
Other comprehensive income (loss), net | (2,259) | (2,259) | |||
Balance at Mar. 31, 2021 | $ 223 | 63,650 | 87,881 | (160) | 151,594 |
Balance (in shares) at Mar. 31, 2021 | 22,351,235 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 21,820 | 21,820 | |||
Cash dividend on common stock | (4,769) | (4,769) | |||
Exercise of stock options | 17 | (1) | $ 16 | ||
Exercise of stock options (in shares) | 6,000 | 6,000 | |||
Stock repurchased | $ (2) | (1,938) | $ (1,940) | ||
Stock repurchased (in shares) | (278,148) | ||||
Restricted stock grants (in shares) | 69,285 | ||||
Restricted stock forfeited (in shares) | (20,976) | ||||
Stock-based compensation expense | 319 | 319 | |||
Other comprehensive income (loss), net | (9,791) | (9,791) | |||
Balance at Mar. 31, 2022 | $ 221 | 62,048 | 104,931 | (9,951) | 157,249 |
Balance (in shares) at Mar. 31, 2022 | 22,127,396 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 18,069 | 18,069 | |||
Cash dividend on common stock | (5,174) | (5,174) | |||
Exercise of stock options | 4 | $ 4 | |||
Exercise of stock options (in shares) | 1,511 | 1,511 | |||
Stock repurchased | $ (9) | (6,697) | $ (6,706) | ||
Stock repurchased (in shares) | (975,666) | ||||
Restricted stock grants (in shares) | 68,719 | ||||
Stock-based compensation expense | 390 | 390 | |||
Purchase of subsidiary shares from noncontrolling interest | (234) | (234) | |||
Other comprehensive income (loss), net | (8,359) | (8,359) | |||
Balance at Mar. 31, 2023 | $ 212 | $ 55,511 | $ 117,826 | $ (18,310) | $ 155,239 |
Balance (in shares) at Mar. 31, 2023 | 21,221,960 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Dividend per share (in dollars per share) | $ 0.24 | $ 0.215 | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 18,069,000 | $ 21,820,000 | $ 10,472,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,693,000 | 3,521,000 | 3,212,000 |
Purchased loans amortization (accretion), net | 27,000 | (11,000) | 274,000 |
Provision for (recapture of) loan losses | 750,000 | (4,625,000) | 6,300,000 |
Provision (benefit) for deferred income taxes | (144,000) | 1,010,000 | (1,429,000) |
Stock-based compensation expense | 390,000 | 319,000 | 396,000 |
Increase (decrease) in deferred loan origination fees, net of amortization | (92,000) | (2,125,000) | 2,477,000 |
Origination of loans held for sale | (913,000) | ||
Proceeds from sales of loans held for sale | 1,214,000 | ||
Net gains on loans held for sale and sales of premises and equipment | (993,000) | (14,000) | |
Income from BOLI | (821,000) | (800,000) | (813,000) |
BOLI death benefit in excess of cash surrender value | (500,000) | ||
Changes in certain other assets and liabilities: | |||
Prepaid expenses and other assets | (3,604,000) | 1,336,000 | 391,000 |
Accrued interest receivable | (140,000) | 586,000 | (1,532,000) |
Accrued expenses and other liabilities | (3,553,000) | (3,075,000) | 4,132,000 |
Net cash provided by operating activities | 13,575,000 | 16,463,000 | 24,167,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Loan repayments (originations), net | 32,755,000 | 40,833,000 | (30,379,000) |
Purchases of loans receivable | (51,102,000) | (85,900,000) | (3,844,000) |
Principal repayments on investment securities available for sale | 14,422,000 | 37,157,000 | 43,824,000 |
Purchases of investment securities available for sale | (73,303,000) | (86,621,000) | (120,371,000) |
Proceeds from calls of investment securities available for sale | 2,010,000 | 4,000,000 | |
Principal repayments on investment securities held to maturity | 17,218,000 | 9,627,000 | 248,000 |
Purchases of investment securities held to maturity | (8,496,000) | (137,936,000) | (39,871,000) |
Purchases of premises and equipment and capitalized software | (4,964,000) | (3,254,000) | (3,552,000) |
Purchase of FHLB stock, net | (4,848,000) | (297,000) | (302,000) |
Proceeds from death benefit on BOLI | 1,305,000 | ||
Proceeds from sales of real estate owned ("REO") and premises and equipment | 63,000 | 3,427,000 | |
Net cash used in investing activities | (76,245,000) | (221,659,000) | (150,247,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase (decrease) in deposits | (268,661,000) | 187,818,000 | 355,617,000 |
Dividends paid | (5,117,000) | (4,670,000) | (4,478,000) |
Proceeds from borrowings | 199,779,000 | 2,000,000 | 31,000,000 |
Repayment of borrowings | (76,025,000) | (2,000,000) | (31,000,000) |
Net increase in advance payments by borrowers for taxes and insurance | 70,000 | 34,000 | (182,000) |
Principal payments on finance lease liability | (54,000) | (46,000) | (40,000) |
Proceeds from exercise of stock options | 4,000 | 16,000 | 50,000 |
Repurchase of common stock | (6,706,000) | (1,940,000) | (1,447,000) |
Net cash (used in) provided by financing activities | (156,710,000) | 181,212,000 | 349,520,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (219,380,000) | (23,984,000) | 223,440,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 241,424,000 | 265,408,000 | 41,968,000 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 22,044,000 | 241,424,000 | 265,408,000 |
Cash paid during the period for: | |||
Interest | 3,742,000 | 1,947,000 | 3,255,000 |
Income taxes | 6,239,000 | 5,410,000 | 4,738,000 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | |||
Dividends declared and accrued in other liabilities | 1,274,000 | 1,217,000 | 1,118,000 |
Net unrealized holding losses from available for sale investment securities | (11,000,000) | (12,882,000) | (2,972,000) |
Income tax effect related to other comprehensive income | $ 2,641,000 | 3,091,000 | 713,000 |
ROU lease assets obtained in exchange for operating lease liabilities | $ 441,000 | $ 6,148,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2023 | |
. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The accompanying consolidated financial statements include the accounts of Riverview Bancorp, Inc.; its wholly-owned subsidiary, Riverview Bank (the “Bank”); the Bank’s wholly-owned subsidiaries, Riverview Services, Inc. and Riverview Trust Company (the “Trust Company”) (collectively referred to as the “Company”). As a Washington state-chartered commercial bank, the Bank’s regulators are the Washington State Department of Financial Institutions (“WDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Board of Governors of the Federal Reserve System (“Federal Reserve”) is the primary federal regulator for Riverview Bancorp, Inc. All inter-company transactions and balances have been eliminated in consolidation. For the period from April 1, 2017 through December 2019, the Trust Company was a wholly-owned subsidiary of the Bank. In December 2019, the Trust Company issued 1,500 shares of Trust Company stock in conjunction with the exercise of 1,500 Trust Company stock options by the Trust Company’s President and Chief Executive Officer. In both October 2020 and May 2021, the Trust Company issued an additional 500 shares of Trust Company stock upon the exercise of options for 500 shares of Trust Company common stock by the Trust Company’s President and Chief Executive Officer. In August 2022, the Trust Company repurchased all the outstanding shares held by its noncontrolling interest owner. Upon repurchase, these shares were retired. This transaction resulted in the Bank’s ownership increasing from 97.3% to 100% . The book value of the noncontrolling interest was $234,000 prior to the share repurchase. These amounts were insignificant and are not presented separately in the accompanying consolidated financial statements. The Company has three subsidiary grantor trusts which were established in connection with the issuance of trust preferred securities (see Note 10). In accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”), the accounts and transactions of the trusts are not included in the accompanying consolidated financial statements. Nature of Operations – The Bank is a community-oriented financial institution which operates 17 branches in rural and suburban communities in southwest Washington State and Multnomah, Washington and Marion counties of Oregon. The Bank is engaged primarily in the business of attracting deposits from the general public and using such funds, together with other borrowings, to make various commercial business, commercial real estate, land, multi-family real estate, real estate construction and consumer loans. Additionally, the Trust Company offers trust and investment services and Riverview Services, Inc. acts as a trustee for deeds of trust on mortgage loans granted by the Bank and receives a reconveyance fee for each deed of trust. Business segments – The Company’s operations are managed along two operating segments, consisting of banking operations performed by the Bank and trust and investment services performed by the Trust Company. While the chief operating decision maker uses financial information related to these segments to analyze business performance and allocate resources, the trust and investment services segment does not meet the quantitative threshold under GAAP to be considered a reportable segment. As such, these operating segments are aggregated into a single reportable operating segment in the consolidated financial statements. No revenues are derived from foreign countries. Use of Estimates in the Preparation of Consolidated Financial Statements – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of related revenue and expense during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, the valuation of investment securities, and the valuation of goodwill for potential impairment. Cash and Cash Equivalents – Cash and cash equivalents include amounts on hand, due from banks and interest-earning deposits in other banks. Cash and cash equivalents have a maturity of 90 days or less at the time of purchase. Certificates of Deposit Held for Investment – Certificates of deposit held for investment include amounts invested with financial institutions at a stated interest rate and maturity date. Early withdrawal penalties apply; however, the Company plans to hold these investments to maturity. Investment Securities – Investments in debt securities are classified as held to maturity when the Company has the ability and positive intent to hold such securities to maturity. Investments in debt securities held to maturity are carried at amortized cost. Unrealized losses on investments in debt securities held to maturity due to fluctuations in fair value are recognized when it is determined that a credit-related other than temporary decline in value has occurred. Investments in debt securities bought and held principally for the purpose of sale in the near-term are classified as trading securities. Investments in debt securities that the Company intends to hold for an indefinite period, but not necessarily to maturity, are classified as available for sale. Such debt securities may be sold to implement the Company’s asset/liability management strategies and in response to changes in interest rates and similar factors. Investments in debt securities available for sale are reported at estimated fair value. Unrealized gains and losses on investment securities available for sale, net of the related deferred tax effect, are included in total comprehensive income and are reported as a net amount in a separate component of shareholders’ equity entitled “accumulated other comprehensive income (loss).” Realized gains and losses on sales of investments in debt securities available for sale, determined using the specific identification method, are included in earnings on the trade date. Amortization of premiums and accretion of discounts are recognized in interest income over the period to contractual maturity or expected call, if sooner. The Company’s investment portfolio consists of debt securities and does not include any equity securities. The Company analyzes investments in debt securities for other than temporary impairment (“OTTI”) on a quarterly basis. OTTI is separated into a credit component and a noncredit component. Credit component losses are reported in non-interest income when the present value of expected future cash flows is less than the amortized cost. Noncredit component losses are recorded in other comprehensive income (loss) when the Company (1) does not intend to sell the security or (2) is not more likely than not to have to sell the security prior to the security’s anticipated recovery. If the Company is likely to sell an investment in a debt security, any noncredit component losses are recognized and are reported in non-interest income. Loans Receivable – Loans are stated at the amount of unpaid principal, reduced by net deferred loan origination fees and an allowance for loan losses. Interest on loans is accrued daily based on the principal amount outstanding. Loans are reviewed regularly and it is the Company’s general policy that a loan is past due when it is 30 days to 89 days delinquent. In general, when a loan is 90 days or more delinquent or when collection of principal or interest appears doubtful, it is placed on non-accrual status, at which time the accrual of interest ceases and a reserve for unrecoverable accrued interest is established and charged against operations. As a general practice, payments received on non-accrual loans are applied to reduce the outstanding principal balance on a cost recovery method. Also, as a general practice, a loan is not removed from non-accrual status until all delinquent principal, interest and late fees have been brought current and the borrower has demonstrated a history of performance based upon the contractual terms of the note. A history of repayment performance generally would be a minimum of six months. Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as an adjustment of the yield of the related loan. Acquired Loans – Purchased loans, including loans acquired in business combinations, are recorded at their estimated fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired (“PCI”) or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The excess of the cash flows expected to be collected over a PCI loan’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the PCI loan using the effective yield method. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company ’s estimate of the credit losses expected to occur and would be considered in determining the estimated fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at the purchase date in excess of fair value are adjusted through a change to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording an allowance for loan losses. The Company had no PCI loans as of March 31, 2023 and 2022. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the lives of the related loans. Any subsequent deterioration in credit quality is recognized by recording an allowance for loan losses. Allowance for Loan Losses – The allowance for loan losses is maintained at a level sufficient to provide for estimated loan losses based on evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management’s ongoing quarterly assessment of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions and a detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes techniques to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are considered impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value (less estimated selling costs, if applicable) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans based on the Company’s risk rating system and historical loss experience adjusted for qualitative factors. The Company calculates its historical loss rates using the average of the last four quarterly 24-month periods. The Company calculates and applies its historical loss rates by individual loan types in its loan portfolio. These historical loss rates are adjusted for qualitative and environmental factors. An unallocated component is maintained to cover uncertainties that the Company believes have resulted in incurred losses that have not yet been allocated to specific elements of the general and specific components of the allowance for loan losses. Such factors include uncertainties in economic conditions, uncertainties in identifying triggering events that directly correlate to subsequent loss rates, changes in appraised value of underlying collateral, risk factors that have not yet manifested themselves in loss allocation factors and historical loss experience data that may not precisely correspond to the current loan portfolio or economic conditions. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the loan portfolio. The appropriate allowance level is estimated based upon factors and trends identified by the Company as of the date of the filing of the consolidated financial statements. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for loan 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. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts when due (principal and interest) according to the contractual terms of the loan agreement. Typically, factors used in determining if a loan is impaired include, but are not limited to, whether the loan is 90 days or more delinquent, internally designated as substandard or worse, on non-accrual status or represents a troubled debt restructuring (“TDR”). The majority of the Company’s impaired loans are considered collateral dependent. When a loan is considered collateral dependent, impairment is measured using the estimated value of the underlying collateral, less any prior liens, and when applicable, less estimated selling costs. For impaired loans that are not collateral dependent, impairment is measured using the present value of expected future cash flows, discounted at the loan’s original effective interest rate. When the estimated net realizable value of the impaired loan is less than the recorded investment in the loan (including accrued interest, net deferred loan fees or costs, and unamortized premium or discount), an impairment is recognized by adjusting an allocation of the allowance for loan losses. Subsequent to the initial allocation of allowance to the individual loan, the Company may conclude that it is appropriate to record a charge-off of the impaired portion of the loan. When a charge-off is recorded, the loan balance is reduced and the specific allowance is eliminated. Generally, when a collateral dependent loan is initially measured for impairment and has not had an appraisal of the collateral in the last six months, the Company obtains an updated market valuation. Subsequently, the Company generally obtains an updated market valuation of the collateral on an annual basis. The collateral valuation may occur more frequently if the Company determines that there is an indication that the market value may have declined. In accordance with the Company’s policy guidelines, unsecured loans are generally charged-off when no payments have been received for three consecutive months unless an alternative action plan is in effect. Consumer installment loans delinquent six months or more that have not received at least 75% of their required monthly payments in the last 90 days are charged-off. In addition, loans discharged in bankruptcy proceedings are charged-off. Loans under bankruptcy protection with no payments received for four consecutive months are charged-off. The outstanding balance of a secured loan that is in excess of the net realizable value of the underlying collateral is generally charged-off if no payments are received for four to five consecutive months. However, charge-offs are postponed if alternative proposals to restructure, obtain additional guarantors, obtain additional assets as collateral or a potential sale of the underlying collateral would result in full repayment of the outstanding loan balance. Once any other potential sources of repayment are exhausted, the impaired portion of the loan is charged-off. Regardless of whether a loan is unsecured or collateralized, once an amount is determined to be a confirmed loan loss it is charged-off. A provision for loan losses is charged against income and is added to the allowance for loan losses based on regular assessments of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. Management’s evaluation of the allowance for loan losses 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 impaired 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 allowance for loan losses and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Allowance for Unfunded Loan Commitments – The allowance for unfunded loan commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded loan commitments is included in accrued expenses and other liabilities in the consolidated balance sheets, with changes to the balance charged against non-interest expense. REO – REO consists of properties acquired through foreclosure and is initially recorded at the estimated fair value of the properties, less estimated costs of disposal. At the time of foreclosure, specific charge-offs are taken against the allowance for loan losses based upon a detailed analysis of the fair value of collateral on the underlying loans on which the Company is in the process of foreclosing. Subsequently, the Company performs an evaluation of the properties and records a valuation allowance with an offsetting charge to REO expenses for any declines in value. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. The amounts the Company will ultimately recover and record in the accompanying consolidated financial statements from the disposition of REO may differ from the amounts used in arriving at the net carrying value of these assets because of future market factors beyond the Company’s control or because of changes in the Company’s strategy for the sale of the property. Costs relating to development and improvement of the properties or assets are capitalized, while costs relating to holding the properties or assets are expensed. The Company held no REO at March 31, 2023 and 2022. At March 31, 2023, there were no mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process. Federal Home Loan Bank Stock – The Bank, as a member of the Federal Home Loan Bank of Des Moines (“FHLB”), is required to maintain a minimum investment in capital stock of the FHLB based on specific percentages of its outstanding FHLB advances. The Company’s investment in FHLB stock is carried at cost, which approximates fair value. The Company views its investment in FHLB stock as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, the value is determined based on the ultimate redemption of the par value rather than recognizing temporary declines in value. The determination of whether a decline affects the ultimate redemption value is influenced by criteria such as: (1) the significance of any decline in net assets of the FHLB as compared to the capital stock amount of the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB, and (4) the liquidity position of the FHLB. The Company evaluated its investment in FHLB stock for OTTI, consistent with its accounting policy. Based on the Company’s evaluation, the Company determined there is not any OTTI on its FHLB stock at March 31, 2023. Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvements are amortized over the estimated term of the related lease or the estimated useful life of the improvements, whichever is less. Depreciation and amortization are generally computed on the straight-line method over the following estimated useful lives: buildings and improvements – up to 45 years ; furniture and equipment – 3 to 20 years ; and leasehold improvements – 15 to 25 years , or estimated lease term if shorter. Gains or losses on dispositions are reflected in earnings. The cost of maintenance and repairs is charged to expense as incurred. Assets are reviewed for impairment when events indicate their carrying value may not be recoverable. If management determines impairment exists the asset is reduced by an offsetting charge to expense. The assets held under the finance lease are amortized on a straight-line basis over the lease term and the amortization is included in depreciation and amortization expense. Mortgage Servicing Rights (“MSRs”) – The Company services certain loans that it has originated and sold to the Federal Home Loan Mortgage Corporation (“FHLMC”) . Loan servicing includes collecting payments; remitting funds to investors, insurance companies and tax authorities; collecting delinquent payments; and foreclosing on properties when necessary. Fees earned for servicing loans for the FHLMC are reported as income when the related mortgage loan payments are collected. Loan servicing costs are charged to expense as incurred. In addition, the Company has recorded MSRs, which represent the rights to service loans. The Company records its originated MSRs at fair value in accordance with GAAP, which requires the Company to allocate the total cost of all mortgage loans sold between loans sold with MSRs retained and loans with MSRs released, based on their relative fair values if it is practicable to estimate those fair values. The Company stratifies its MSRs based on the predominant characteristics of the underlying financial assets including the coupon interest rate and the contractual maturity of the mortgage. The Company is amortizing the MSRs in proportion to and over the period of estimated net servicing income. MSRs were fully amortized at March 31, 2023 compared to an insignificant balance at March 31, 2022. Business Combinations, CDI and Goodwill – GAAP requires the total purchase price in a business combination to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Subsequent adjustments to the initial allocation of the purchase price may be made related to fair value estimates for which all relevant information has not been obtained, known, or discovered relating to the acquired entity during the allocation period (which is the period of time required to identify and measure the estimated fair values of the assets acquired and liabilities assumed in a business combination). The allocation period is generally limited to one year following consummation of a business combination. CDI represents the value assigned to demand, interest checking, money market and savings accounts acquired as part of a business combination. CDI represents the future economic benefit of the potential cost savings from acquiring core deposits as part of a business combination compared to the cost of alternative funding sources. CDI is amortized to non-interest expense using an accelerated method based on an estimated runoff of related deposits over a period of ten years . CDI is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. At both March 31, 2023 and 2022, gross CDI was $1.4 million. At March 31, 2023 and 2022, accumulated amortization was $984,000 and $868,000 , respectively. The amortization expense for CDI in future years is estimated to be $108,000 , $100,000 , $93,000 , and $78,000 for the years ending March 31, 2024, 2025, 2026, and 2027, respectively. Goodwill and certain other intangibles generally arise from business combinations. Goodwill and other intangibles generated from business combinations that are deemed to have indefinite lives are not subject to amortization and are instead tested for impairment not less than annually. The Company performs an annual review in the third quarter of each year, or more frequently if indicators of potential impairment exist, to determine if the recorded goodwill is impaired (see Note 7). BOLI – BOLI policies are recorded at their cash surrender value less applicable surrender charges. Income from BOLI is recognized when earned. Advertising and Marketing – Costs incurred for advertising, merchandising, market research, community investment and business development are classified as advertising and marketing expense and are expensed as incurred. Income Taxes – Income taxes are accounted for using the asset and liability method. Under this method, a deferred tax asset or liability is determined based on the enacted tax rates which will be in effect when the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company’s income tax returns. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the potential deferred tax asset will not be realized. The Company files a consolidated federal income tax return. The Bank provides for income taxes separately and remits to the Company amounts currently due. Transfers of financial assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Trust Assets – Assets held by the Trust Company in a fiduciary or agency capacity for trust customers are not included in the consolidated financial statements because such items are not assets of the Company. Assets totaling $890.6 million were held in trust as of March 31, 2023 compared to $1.3 billion as of March 31, 2022. Earnings Per Share – GAAP requires all companies whose capital structure includes dilutive potential common shares to make a dual presentation of basic and diluted earnings per share for all periods presented. The Company’s basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period , without consideration of any dilutive items. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. The Company’s diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and has been computed after giving consideration to the weighted average diluted effect of the Company’s stock options. Stock-Based Compensation – The Company measures compensation cost for all stock-based awards based on the grant-date fair value of the awards and recognizes compensation cost over the service period of stock-based awards. The fair value of stock options is determined using the Black-Scholes valuation model. The fair value of restricted stock is determined based on the grant date fair value of the Company’s common stock. Accounting Pronouncements Recently Issued or Adopted – In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11. ASU 2016-13 replaces the existing incurred losses methodology for estimating allowances with a current expected credit losses (“CECL”) methodology with respect to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held to maturity investment securities and off-balance sheet commitments. In addition, ASU 2016-13 requires credit losses relating to available for sale debt securities to be recorded through an allowance for credit losses rather than as a reduction of carrying amount. ASU 2016-13 also changes the accounting for purchased credit impaired debt securities and loans. ASU 2016-13 retains many of the current disclosure requirements in GAAP and expands certain disclosure requirements. As a “smaller reporting company” filer with the U.S. Securities and Exchange Commission, ASU 2016-13 is effective for the Company beginning April 1, 2023. Upon adoption, the Company expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for OTTI of investment securities available for sale will be replaced with an allowance approach. The Company is implementing processes and procedures to ensure it is |
RESTRICTED ASSETS
RESTRICTED ASSETS | 12 Months Ended |
Mar. 31, 2023 | |
RESTRICTED ASSETS. | |
RESTRICTED ASSETS | 2. RESTRICTED ASSETS Regulations of the Federal Reserve require that the Bank maintain minimum reserve balances either on hand or on deposit with the Federal Reserve Bank of San Francisco (“FRB”) based on a percentage of deposits. Effective March 26, 2020, the reserve requirement was reduced to zero and the Bank was not required to maintain any such reserve balances as of March 31, 2023 and 2022, respectively. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Mar. 31, 2023 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | 3. 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 March 31, 2023 Available for sale: Municipal securities $ 47,857 $ 16 $ (7,612) $ 40,261 Agency securities 91,858 23 (5,974) 85,907 Real estate mortgage investment conduits (1) 34,247 — (5,370) 28,877 Residential mortgage-backed securities (1) 16,512 — (1,041) 15,471 Other mortgage-backed securities (2) 45,117 4 (4,138) 40,983 Total available for sale $ 235,591 $ 43 $ (24,135) $ 211,499 Held to maturity: Municipal securities $ 10,344 $ — $ (2,859) $ 7,485 Agency securities 53,941 — (5,091) 48,850 Real estate mortgage investment conduits (1) 35,186 — (4,769) 30,417 Residential mortgage-backed securities (1) 123,773 — (17,542) 106,231 Other mortgage-backed securities (3) 20,599 — (3,368) 17,231 Total held to maturity $ 243,843 $ — $ (33,629) $ 210,214 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2022 Available for sale: Municipal securities $ 44,104 $ 14 $ (4,514) $ 39,604 Agency securities 43,848 1 (3,144) 40,705 Real estate mortgage investment conduits (1) 35,563 1 (2,847) 32,717 Residential mortgage-backed securities (1) 17,368 13 (436) 16,945 Other mortgage-backed securities (2) 37,991 28 (2,208) 35,811 Total available for sale $ 178,874 $ 57 $ (13,149) $ 165,782 Held to maturity: Municipal securities $ 10,368 $ — $ (1,422) $ 8,946 Agency securities 45,277 — (2,450) 42,827 Real estate mortgage investment conduits (1) 39,394 — (2,457) 36,937 Residential mortgage-backed securities (1) 137,343 — (8,883) 128,460 Other mortgage-backed securities (3) 20,718 — (1,859) 18,859 Total held to maturity $ 253,100 $ — $ (17,071) $ 236,029 (1) (2) (3) During the third fiscal quarter of 2022, the Company reassessed the classification of certain investment securities and transferred $85.8 million of U.S. government and agency securities from the available for sale classific ation to the held to maturity classification. The net unrealized after tax gain of $18,000 was deemed insignificant and the book balance of investment securities were transferred. No gains or losses were recognized in connection with the transfer. The contractual maturities of investment securities as of March 31, 2023 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 $ 12,442 $ 12,261 $ 4 $ 4 Due after one year through five years 82,028 78,204 42,211 39,339 Due after five years through ten years 54,035 47,214 29,695 24,965 Due after ten years 87,086 73,820 171,933 145,906 Total $ 235,591 $ 211,499 $ 243,843 $ 210,214 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 fair value of temporarily impaired investment securities, the amount of unrealized losses and the length of time these unrealized losses existed are 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 March 31, 2023 Value Losses Value Losses Value Losses Available for sale: Municipal securities $ 6,277 $ (133) $ 32,797 $ (7,479) $ 39,074 $ (7,612) Agency securities 43,451 (747) 36,646 (5,227) 80,097 (5,974) Real estate mortgage investment conduits (1) 2,693 (97) 26,184 (5,273) 28,877 (5,370) Residential mortgage-backed securities (1) 3,449 (147) 12,022 (894) 15,471 (1,041) Other mortgage-backed securities (2) 13,876 (376) 26,619 (3,762) 40,495 (4,138) Total available for sale $ 69,746 $ (1,500) $ 134,268 $ (22,635) $ 204,014 $ (24,135) Held to maturity: Municipal securities $ — $ — $ 7,485 $ (2,859) $ 7,485 $ (2,859) Agency securities 8,413 (240) 40,437 (4,851) 48,850 (5,091) Real estate mortgage investment conduits (1) 2,580 (191) 27,837 (4,578) 30,417 (4,769) Residential mortgage-backed securities (1) 2 — 106,229 (17,542) 106,231 (17,542) Other mortgage-backed securities (3) — — 17,231 (3,368) 17,231 (3,368) Total held to maturity $ 10,995 $ (431) $ 199,219 $ (33,198) $ 210,214 $ (33,629) March 31, 2022 Available for sale: Municipal securities $ 32,767 $ (4,293) $ 3,282 $ (221) $ 36,049 $ (4,514) Agency securities 22,288 (1,565) 16,414 (1,579) 38,702 (3,144) Real estate mortgage investment conduits (1) 17,334 (1,310) 15,275 (1,537) 32,609 (2,847) Residential mortgage-backed securities (1) 15,702 (436) — — 15,702 (436) Other mortgage-backed securities (2) 32,408 (2,194) 769 (14) 33,177 (2,208) Total available for sale $ 120,499 $ (9,798) $ 35,740 $ (3,351) $ 156,239 $ (13,149) Held to maturity: Municipal securities $ 5,911 $ (816) $ 3,036 $ (606) $ 8,947 $ (1,422) Agency securities 35,930 (1,708) 6,897 (742) 42,827 (2,450) Real estate mortgage investment conduits (1) 26,233 (1,715) 7,735 (742) 33,968 (2,457) Residential mortgage-backed securities (1) 111,096 (7,160) 17,363 (1,723) 128,459 (8,883) Other mortgage-backed securities (3) 13,472 (1,153) 5,386 (706) 18,858 (1,859) Total held to maturity $ 192,642 $ (12,552) $ 40,417 $ (4,519) $ 233,059 $ (17,071) (1) (2) (3) The unrealized losses on the Company’s investment securities were primarily attributable to increases in market interest rates subsequent to their purchase by the Company. The Company expects the fair value of these securities to recover as the securities approach their maturity dates or sooner if market yields for such securities decline. The Company does not believe that these securities are other than temporarily impaired because of their credit quality or related to any issuer or industry specific event. Based on management’s evaluation and intent, the unrealized losses related to the investment securities in the above tables are considered temporary. The Company had no sales and realized no gains or losses on sales of investment securities for the years ended March 31, 2023, 2022 and 2021. Investment securities available for sale with an amortized cost of $3.2 million and $1.3 million and a fair value of $2.9 million and $1.2 million at March 31, 2023 and 2022, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $12.3 million and $13.7 million and a fair value of $10.4 million and $12.6 million at March 31, 2023 and 2022, respectively, were pledged as collateral for government public funds held by the Bank. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Mar. 31, 2023 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 4 . LOANS RECEIVABLE Loans receivable are reported net of deferred loan fees and discounts, and inclusive of premiums. At March 31, 2023, deferred loan fees totaled $4.4 million compared to $4.5 million at March 31, 2022. Loans receivable discounts and premiums totaled $1.4 million and $2.1 million, respectively, as of March 31, 2023, compared to $371,000 and $2.4 million, respectively, as of March 31, 2022. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands): March 31, March 31, 2023 2022 Commercial and construction Commercial business $ 232,868 $ 228,091 Commercial real estate 564,496 582,837 Land 6,437 11,556 Multi-family 55,836 60,211 Real estate construction 47,762 24,160 Total commercial and construction 907,399 906,855 Consumer Real estate one-to-four family 99,673 82,006 Other installment 1,784 1,547 Total consumer 101,457 83,553 Total loans 1,008,856 990,408 Less: Allowance for loan losses 15,309 14,523 Loans receivable, net $ 993,547 $ 975,885 The Company’s loan portfolio includes originated and purchased loans. Originated loans and purchased loans for which there was no evidence of credit deterioration at their acquisition date and for which it was probable that the Company would be able to collect all contractually required payments, are referred to collectively as “loans”. The Company originates commercial business, commercial real estate, land, multi-family real estate, real estate construction, residential real estate and other consumer loans. At March 31, 2023 and 2022, the Company had no loans to foreign domiciled businesses or foreign countries, or loans related to highly leveraged transactions. Substantially all of the mortgage loans in the Company’s loan portfolio are secured by properties located in Washington and Oregon, and accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio is susceptible to changes in the local economic conditions in these markets. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulations to 15% of the Bank’s shareholders’ equity, excluding accumulated other comprehensive income (loss) (“AOCI”). 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 March 31, 2023, loans carried at $601.5 million were pledged as collateral to the FHLB and FRB for borrowing arrangements. Aggregate loans to officers and directors, all of which are current, consisted of the following for the periods indicated (in thousands): Year Ended March 31, 2023 2022 2021 Beginning balance $ 3,790 $ 5,308 $ 625 Originations — 32 8,174 Principal repayments (943) (1,550) (3,491) Ending balance $ 2,847 $ 3,790 $ 5,308 Loan segment risk characteristics – The Company considers its loan classes to be the same as its loan segments. The following are loan segment risk characteristics of the Company’s loan portfolio: Commercial business – Commercial business loans, other than SBA Paycheck Protection Program (“PPP”) loans, are primarily made based on the operating cash flows of the borrower or conversion of working capital assets to cash and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans may be difficult to measure. Most commercial business loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and generally include a personal guarantee based on a review of personal financial statements. The Company will extend some short-term loans on an unsecured basis to highly qualified borrowers. Although commercial business loans are often collateralized by equipment, inventory, accounts receivable or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial business loan depends primarily on the credit-worthiness of the borrower (and any guarantors), while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of the borrowers and the guarantors. Commercial real estate – The Company originates commercial real estate loans within its primary market areas secured by properties such as office buildings, warehouse/industrial, retail, assisted living, single purpose facilities, and other commercial properties. These are cash flow loans that share characteristics of both real estate and commercial business loans. The primary source of repayment is cash flow from the operation of the collateral property and secondarily through liquidation of the collateral. These loans are generally higher risk than other classifications of loans in that they typically involve higher loan amounts, are dependent on the management experience of the owners, and may be adversely affected by conditions in the real estate market or the economy. Owner-occupied commercial real estate loans are generally of lower credit risk than non-owner occupied commercial real estate loans as the borrowers’ businesses are likely dependent on the properties. Underwriting for these loans is primarily dependent on the repayment capacity derived from the operation of the occupying business rather than rents paid by third-parties. The Company attempts to mitigate these risks by generally limiting the maximum loan-to-value ratio to 65% - 80% depending on the property type and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan. Land – The Company has historically originated loans for the acquisition of raw land upon which the purchaser can then build or make improvements necessary to build or sell as improved lots. Currently, the Company is originating new land loans on a limited basis. Loans secured by undeveloped land or improved lots involve greater risks than one-to-four family residential mortgage loans because these loans are more difficult to evaluate. If the estimate of value proves to be inaccurate, in the event of default or foreclosure, the Company may incur a loss. The Company attempts to minimize this risk by generally limiting the maximum loan-to-value ratio on raw land loans to 65% and on improved land loans to 75% . Multi-family – The Company originates loans secured by multi-family dwelling units (more than four units). These loans involve a greater degree of risk than one-to-four family residential mortgage loans as these loans are usually greater in amount, dependent on the cash flow capacity of the project, and are more difficult to evaluate and monitor. Repayment of loans secured by multi-family properties typically depends on the successful operation and management of the properties. Consequently, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by thoroughly evaluating the global financial condition of the borrower, the management experience of the borrower, and the quality of the collateral property securing the loan. Real estate construction – The Company originates construction loans for one-to-four family residential, multi-family, and commercial real estate properties. The one-to-four family residential construction loans include construction of consumer custom homes whereby the home buyer is the borrower as well as speculative and presold loans for home builders. Speculative one-to four-family construction loans are loans for which the home builder does not have, at the time of the loan origination, a signed contract with a home buyer who has a commitment for permanent financing with the Company or another lender for the finished home. The home buyer may be identified either during or after the construction period. Presold construction loans are made to homebuilders who, at the time of construction, have a signed contract with a home buyer who has a commitment for permanent financing for the finished home from the Company or another lender. Multi-family construction loans are originated to construct apartment buildings and condominium projects. Commercial construction loans are originated to construct properties such as office buildings, retail rental space and mini-storage facilities, and assisted living facilities. All construction loans are short-term and generally the rate is variable in nature. Construction lending can involve a higher level of risk than other types of lending because funds are advanced based on a prospective value of the project at completion, the total estimated construction cost of the project, and the borrowers’ equity at risk. Additionally, the repayment of the loan is conditional on the success of the ultimate project which is subject to interest rate changes, governmental regulations, general economic conditions and the ability of the borrower to sell or lease the property or refinance the indebtedness. If the Company’s estimate of the value of a project at completion proves to be overstated, it may have inadequate security for repayment of the loan and may incur a loss if the borrower does not repay the loan. Projects may also be jeopardized by disagreements between borrowers and builders and by the failure of builders to pay subcontractors. A speculative home construction loan carries more risk because the payoff for the loan depends on the builder’s ability to sell the property prior to the time that the construction loan is due. Although the nature of real estate construction loans is such that they are generally more difficult to evaluate and monitor, the Company attempts to closely monitor the construction project by on-site inspections. The Company also attempts to mitigate the risks of construction lending by adhering to its underwriting policies, disbursement procedures and monitoring practices. Real estate one-to-four family – The Company originates both fixed-rate and adjustable-rate loans secured by one- to-four family residences located in its primary market areas. The majority of the fixed-rate one-to-four family loans are sold in the secondary market for asset/liability management purposes and to generate non-interest income. The Company’s lending policies generally limit the maximum loan-to-value on one-to-four family loans to 80% of the lesser of the appraised value or the purchase price. In a situation where a loan exceeds 80% loan-to value, the Company usually obtains private mortgage insurance on the portion of the principal amount that exceeds 80% of the appraised value of the property. Terms of maturity typically range from 15 to 30 years . The Company also originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one-to-four family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate residential lending risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Other installment – The Company originates other consumer loans, which include automobile, boat, motorcycle, recreational vehicle, savings account and unsecured loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciating assets such as automobiles. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Mar. 31, 2023 | |
ALLOWANCE FOR LOAN LOSSES | |
ALLOWANCE FOR LOAN LOSSES | 5. ALLOWANCE FOR LOAN LOSSES The following tables present a reconciliation of the allowance for loan losses for the periods indicated (in thousands): Commercial Commercial Multi- Real Estate March 31, 2023 Business Real Estate Land Family Construction Consumer Unallocated Total Beginning balance $ 2,422 $ 9,037 $ 168 $ 845 $ 393 $ 943 $ 715 $ 14,523 Provision for (recapture of) loan losses 701 (143) (75) (47) 371 148 (205) 750 Charge-offs — — — — — (17) — (17) Recoveries — — — — — 53 — 53 Ending balance $ 3,123 $ 8,894 $ 93 $ 798 $ 764 $ 1,127 $ 510 $ 15,309 March 31, 2022 Beginning balance $ 2,416 $ 14,089 $ 233 $ 638 $ 294 $ 852 $ 656 $ 19,178 Provision for (recapture of) loan losses 75 (5,052) (65) 207 99 52 59 (4,625) Charge-offs (69) — — — — (17) — (86) Recoveries — — — — — 56 — 56 Ending balance $ 2,422 $ 9,037 $ 168 $ 845 $ 393 $ 943 $ 715 $ 14,523 March 31, 2021 Beginning balance $ 2,008 $ 6,421 $ 230 $ 854 $ 1,149 $ 1,363 $ 599 $ 12,624 Provision for (recapture of) loan losses 398 7,336 3 (216) (855) (423) 57 6,300 Charge-offs — — — — — (124) — (124) Recoveries 10 332 — — — 36 — 378 Ending balance $ 2,416 $ 14,089 $ 233 $ 638 $ 294 $ 852 $ 656 $ 19,178 The following tables present an analysis of loans receivable and the allowance for loan losses, based on impairment methodology, at the dates indicated (in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Collectively Individually Collectively Evaluated Evaluated Evaluated Evaluated for for for for March 31, 2023 Impairment Impairment Total Impairment Impairment Total Commercial business $ — $ 3,123 $ 3,123 $ 79 $ 232,789 $ 232,868 Commercial real estate — 8,894 8,894 100 564,396 564,496 Land — 93 93 — 6,437 6,437 Multi-family — 798 798 — 55,836 55,836 Real estate construction — 764 764 — 47,762 47,762 Consumer 6 1,121 1,127 450 101,007 101,457 Unallocated — 510 510 — — — Total $ 6 $ 15,303 $ 15,309 $ 629 $ 1,008,227 $ 1,008,856 March 31, 2022 Commercial business $ — $ 2,422 $ 2,422 $ 100 $ 227,991 $ 228,091 Commercial real estate — 9,037 9,037 122 582,715 582,837 Land — 168 168 — 11,556 11,556 Multi-family — 845 845 — 60,211 60,211 Real estate construction — 393 393 — 24,160 24,160 Consumer 8 935 943 495 83,058 83,553 Unallocated — 715 715 — — — Total $ 8 $ 14,515 $ 14,523 $ 717 $ 989,691 $ 990,408 Changes in the allowance for unfunded loan commitments were as follows for the years indicated (in thousands): Year Ended March 31, 2023 2022 2021 Beginning balance $ 424 $ 509 $ 474 Net change in allowance for unfunded loan commitments (17) (85) 35 Ending balance $ 407 $ 424 $ 509 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 March 31, 2023 Past Due Past Due Non-accrual accrual Current Receivable Commercial business $ 1,967 $ 1,569 $ 97 $ 3,633 $ 229,235 $ 232,868 Commercial real estate — — 100 100 564,396 564,496 Land — — — — 6,437 6,437 Multi-family — — — — 55,836 55,836 Real estate construction — — — — 47,762 47,762 Consumer 11 — 86 97 101,360 101,457 Total $ 1,978 $ 1,569 $ 283 $ 3,830 $ 1,005,026 $ 1,008,856 March 31, 2022 Commercial business $ 7,753 $ 21,808 $ 118 $ 29,679 $ 198,412 $ 228,091 Commercial real estate — — 122 122 582,715 582,837 Land — — — — 11,556 11,556 Multi-family — — — — 60,211 60,211 Real estate construction 291 — — 291 23,869 24,160 Consumer 9 — 51 60 83,493 83,553 Total $ 8,053 $ 21,808 $ 291 $ 30,152 $ 960,256 $ 990,408 A substantial portion of the 30-89 days past due and 90 days and greater past due loans at March 31, 2023 and 2022 are comprised of government guaranteed loans. These government guaranteed loans are pass rated loans and are not considered to be non-accrual loans given the Company expects to receive all principal and interest and not considered to be classified loans because there are no well-defined weaknesses or risk of loss. Given these government guaranteed loans are neither non-accrual loans nor classified loans, these loans are not considered to be impaired loans based on the Company’s policy. Given these loans are not considered to be impaired loans and are fully guaranteed by the SBA or USDA, these loans are omitted from the required allowance calculation. Interest income foregone on non-accrual loans was $14,000 , $24,000 and $49,000 for the years ended March 31, 2023, 2022 and 2021, respectively. Credit quality indicators – The Company monitors credit risk in its loan portfolio using a risk rating system (on a scale of one to nine) for all commercial (non-consumer) loans. The risk rating system is a measure of the credit risk of the borrower based on their historical, current and anticipated future financial characteristics. The Company assigns a risk rating to each commercial loan at origination and subsequently updates these ratings, as necessary, so that the risk rating continues to reflect the appropriate risk characteristics of the loan. Application of appropriate risk ratings is key to management of loan portfolio risk. In determining the appropriate risk rating, the Company considers the following factors: delinquency, payment history, quality of management, liquidity, leverage, earnings trends, alternative funding sources, geographic risk, industry risk, cash flow adequacy, account practices, asset protection and extraordinary risks. Consumer loans, including custom construction loans, are not assigned a risk rating but rather are grouped into homogeneous pools with similar risk characteristics. When a consumer loan is delinquent 90 days, it is placed on non-accrual status and assigned a substandard risk rating. Loss factors are assigned to each risk rating and homogeneous pool based on historical loss experience for similar loans. This historical loss experience is adjusted for qualitative factors that are likely to cause the estimated credit losses to differ from the Company’s historical loss experience. The Company uses these loss factors to estimate the general component of its allowance for loan losses. Pass – These loans have a risk rating between 1 and 4 and are to borrowers that meet normal credit standards. Any deficiencies in satisfactory asset quality, liquidity, debt servicing capacity and coverage are offset by strengths in other areas. The borrower currently has the capacity to perform according to the loan terms. Any concerns about risk factors such as stability of margins, stability of cash flows, liquidity, dependence on a single product/supplier/customer, depth of management, etc. are offset by strengths in other areas. Typically, these loans are secured by the operating assets of the borrower and/or real estate. The borrower’s management is considered competent. The borrower has the ability to repay the debt in the normal course of business. Watch – These loans have a risk rating of 5 and are included in the “pass” rating. However, there would typically be some reason for additional management oversight, such as the borrower’s recent financial setbacks and/or deteriorating financial position, industry concerns and failure to perform on other borrowing obligations. Loans with this rating are monitored closely in an effort to correct deficiencies. Special mention – These loans have a risk rating of 6 and are rated in accordance with regulatory guidelines. These loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the credit position at some future date. These loans pose elevated risk but their weakness does not yet justify a “substandard” classification. Substandard – These loans have a risk rating of 7 and are rated in accordance with regulatory guidelines, for which the accrual of interest may or may not be discontinued. By definition under regulatory guidelines, a “substandard” loan has defined weaknesses which make payment default or principal exposure likely but not yet certain. Repayment of such loans is likely to be dependent upon collateral liquidation, a secondary source of repayment, or an event outside of the normal course of business. Doubtful – These loans have a risk rating of 8 and are rated in accordance with regulatory guidelines. Such loans are placed on non-accrual status and repayment may be dependent upon collateral which has value that is difficult to determine or upon some near-term event which lacks certainty. Loss – These loans have a risk rating of 9 and are rated in accordance with regulatory guidelines. Such loans are charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. The following tables present an analysis of loans by credit quality indicators at the dates indicated (in thousands): Total Special Loans March 31, 2023 Pass Mention Substandard Doubtful Loss Receivable Commercial business $ 231,384 $ 1,367 $ 117 $ — $ — $ 232,868 Commercial real estate 544,426 17,626 2,444 — — 564,496 Land 6,437 — — — — 6,437 Multi-family 55,694 142 — — — 55,836 Real estate construction 47,762 — — — — 47,762 Consumer 101,371 — 86 — — 101,457 Total $ 987,074 $ 19,135 $ 2,647 $ — $ — $ 1,008,856 March 31, 2022 Commercial business $ 227,435 $ 511 $ 145 $ — $ — $ 228,091 Commercial real estate 569,417 7,211 6,209 — — 582,837 Land 11,556 — — — — 11,556 Multi-family 60,138 73 — — — 60,211 Real estate construction 24,160 — — — — 24,160 Consumer 83,502 — 51 — — 83,553 Total $ 976,208 $ 7,795 $ 6,405 $ — $ — $ 990,408 Impaired loans – The following tables present information regarding impaired loans at the dates and for the years indicated (in thousands): Recorded Recorded Investment Investment with with Related No Specific Specific Total Unpaid Specific Valuation Valuation Recorded Principal Valuation March 31, 2023 Allowance Allowance Investment Balance Allowance Commercial business $ 79 $ — $ 79 $ 127 $ — Commercial real estate 100 — 100 162 — Consumer 355 95 450 442 6 Total $ 534 $ 95 $ 629 $ 731 $ 6 March 31, 2022 Commercial business $ 100 $ — $ 100 $ 143 $ — Commercial real estate 122 — 122 178 — Consumer 259 236 495 603 8 Total $ 481 $ 236 $ 717 $ 924 $ 8 Year ended Year ended Year ended March 31, 2023 March 31, 2022 March 31, 2021 Interest Interest Interest Recognized Recognized Recognized Average on Average on Average on Recorded Impaired Recorded Impaired Recorded Impaired Investment Loans Investment Loans Investment Loans Commercial business $ 90 $ — $ 110 $ — $ 130 $ — Commercial real estate 111 — 660 16 2,008 61 Land — — — — 713 40 Multi-family — — — — 1,313 77 Consumer 475 24 514 24 494 29 Total $ 676 $ 24 $ 1,284 $ 40 $ 4,658 $ 207 The cash basis interest income on impaired loans was not materially different than the interest recognized on impaired loans as shown in the above tables. TDRs and other loan modifications – TDRs are loans for which the Company, for economic or legal reasons related to the borrower’s financial condition, has granted a concession to the borrower that it would otherwise not consider. A TDR typically involves a modification of terms such as a reduction of the stated interest rate or face amount of the loan, a reduction of accrued interest, and/or an extension of the maturity date(s) at a stated interest rate lower than the current market rate for a new loan with similar risk. TDRs are considered impaired loans and as such, impairment is measured as described for impaired loans in Note 1 – Summary of Significant Accounting Policies – Allowance for Loan Losses. The following table presents TDRs by interest accrual status at the dates indicated (in thousands): March 31, 2023 March 31, 2022 Accrual Non-accrual Total Accrual Non-accrual Total Commercial business $ — $ 79 $ 79 $ — $ 100 $ 100 Commercial real estate — 100 100 — 122 122 Land — — — — — — Multi-family — — — — — — Consumer 450 — 450 495 — 495 Total $ 450 $ 179 $ 629 $ 495 $ 222 $ 717 At March 31, 2023, the Company had no commitments to lend additional funds on these loans. At March 31, 2023, all of the Company’s TDRs were paying as agreed. There were no new TDRs for the fiscal years ended March 31, 2023 and 2022. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2023 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | 6. PREMISES AND EQUIPMENT Premises and equipment consisted of the following at the dates indicated (in thousands): March 31, 2023 2022 Land $ 5,715 $ 4,714 Buildings and improvements 18,494 17,030 Leasehold improvements 3,965 3,998 Furniture and equipment 11,578 10,765 Construction in progress 33 — Total 39,785 36,507 Less accumulated depreciation and amortization (19,666) (19,341) Premises and equipment, net $ 20,119 $ 17,166 Depreciation and amortization expense was $1.7 million, $1.5 million and $1.4 million for the years ended March 31, 2023, 2022 and 2021, respectively . |
GOODWILL
GOODWILL | 12 Months Ended |
Mar. 31, 2023 | |
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 of the Company’s goodwill has been allocated to the Bank reporting unit. The Company performed its annual impairment assessment as of October 31, 2022 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 March 31, 2023, and concluded that it is more likely than not that the fair value of the Bank (the reporting unit), exceeds its carrying value. If adverse economic conditions or decreases in the Company’s common stock price and market capitalization were deemed sustained in the future rather than temporary, it may significantly affect the fair value of the reporting unit and may trigger future goodwill impairment charges. Any impairment charge could have a material adverse effect on our results of operations and financial condition. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Mar. 31, 2023 | |
DEPOSITS | |
DEPOSITS | 8. DEPOSITS Deposit accounts consisted of the following at the dates indicated (in thousands): March 31, March 31, Account Type 2023 2022 Non-interest-bearing $ 404,937 $ 494,831 Interest-bearing checking 254,522 287,861 Money market 221,778 299,738 Savings accounts 255,147 340,076 Certificates of deposit 128,833 111,372 Total $ 1,265,217 $ 1,533,878 Individual certificates of deposit greater than $250,000 totaled $40.3 million and $32.7 million at March 31, 2023 and 2022, respectively. Scheduled maturities of certificates of deposit for future years ending March 31 are as follows (in thousands): Year Ending March 31, : 2024 $ 84,603 2025 37,569 2026 4,143 2027 1,193 2028 531 Thereafter 794 Total $ 128,833 Interest expense by deposit type was as follows for the years indicated (in thousands): Year Ended March 31, 2023 2022 2021 Interest-bearing checking $ 89 $ 87 $ 85 Money market 415 150 153 Savings accounts 219 247 418 Certificates of deposit 779 940 1,888 Total $ 1,502 $ 1,424 $ 2,544 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Mar. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
FEDERAL HOME LOAN BANK ADVANCES | 9. FEDERAL HOME LOAN BANK ADVANCES FHLB advances are summarized at the dates indicated (dollars in thousands): March 31, 2023 March 31, 2022 FHLB advances $ 123,754 $ — Weighted average interest rate on FHLB advances (1) 4.88 % 0.31 % (1) The Bank has a credit line with the FHLB equal to 45% of total assets, limited by available collateral. At March 31, 2023, based on collateral values, the Bank had additional borrowing capacity of $191.6 million from the FHLB. FHLB advances are collateralized with loans secured by real estate. At March 31, 2023, loans carried at $511.3 million were pledged as collateral to the FHLB. |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES | 12 Months Ended |
Mar. 31, 2023 | |
JUNIOR SUBORDINATED DEBENTURES | |
JUNIOR SUBORDINATED DEBENTURES | 10. 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, totaling $ 26.9 million and $26.8 million at March 31, 2023 and 2022, respectively, 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 March 31, 2023 and 2022, 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 March 31, 2023 (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 % 6.23 % 3/2036 Riverview Bancorp Statutory Trust II 06/2007 15,464 Variable (2) 7.03 % 6.22 % 9/2037 Merchants Bancorp Statutory Trust I (4) 06/2003 5,155 Variable (3) 4.16 % 8.23 % 6/2033 27,836 Fair value adjustment (4) (918) Total Debentures $ 26,918 (1) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 1.36% . (2) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 1.35% . (3) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 3.10 % . (4) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES Provision for income taxes consisted of the following for the periods indicated (in thousands): Year Ended March 31 2023 2022 2021 Current $ 5,754 $ 5,446 $ 4,410 Deferred (144) 1,010 (1,429) Total $ 5,610 $ 6,456 $ 2,981 The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at the dates indicated (in thousands): March 31, March 31, 2023 2022 Deferred tax assets: Deferred compensation $ 78 $ 57 Allowance for loan losses 3,772 3,588 Accrued expenses 160 170 Accumulated depreciation and amortization 918 881 Deferred gain on sale 34 52 Deferred income 57 107 Purchase accounting 46 74 Net unrealized loss on investment securities available for sale 5,782 3,141 Operating lease liabilities 1,695 1,993 Other 429 420 Total deferred tax assets 12,971 10,483 Deferred tax liabilities: FHLB stock dividends (38) (38) Prepaid expenses (241) (171) Operating lease ROU assets (1,609) (1,898) Loan fees/costs (797) (875) Total deferred tax liabilities (2,685) (2,982) Deferred tax assets, net $ 10,286 $ 7,501 A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows for the years indicated: Year Ended March 31, 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income tax rate 3.0 3.0 3.0 Employee Stock Ownership Plan ("ESOP") market value adjustment (0.1) (0.1) (0.1) BOLI (0.8) (0.7) (1.5) Other, net 0.6 (0.4) (0.3) Effective federal income tax rate 23.7 % 22.8 % 22.1 % For the fiscal years ended March 31, 2023 and 2022, the Company utilized a federal corporate income tax rate of 21.0% . The Bank’s retained earnings at March 31, 2023 and 2022 include a base year allowance for loan losses, which amounted to $2.2 million, for which no federal income tax liability has been recognized. The related unrecognized deferred tax liability at March 31, 2023 and 2022 was $528,000 . This represents the balance of the allowance for loan losses created for tax purposes as of December 31, 1987. This amount is subject to recapture in the unlikely event that the Company’s banking subsidiaries (1) make distributions in excess of current and accumulated earnings and profits, as calculated for federal tax purposes, (2) redeem their stock, or (3) liquidate. Management does not expect this temporary difference to reverse in the foreseeable future. At March 31, 2023 and 2022, the Company had no unrecognized tax benefits or uncertain tax positions. In addition, the Company had no accrued interest or penalties related to income tax matters as of March 31, 2023 and 2022. It is the Company’s policy to recognize potential accrued interest and penalties related to income tax matters as a component of the provision for income taxes. The Company is subject to U.S federal and State of Oregon income taxes. The years 2019 to 2022 remain open to examination for federal income taxes, and the years 2019 to 2022 remain open to State of Oregon examination . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Mar. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 12. EMPLOYEE BENEFIT PLANS Retirement Plan – The Riverview Bancorp, Inc. Employees’ Savings and Profit Sharing Plan (the “Plan”) is a defined contribution profit-sharing plan incorporating the provisions of Section 401(k) of the Internal Revenue Code. Company expenses related to the Plan for the years ended March 31, 2023, 2022 and 2021 were $519,000 , $529,000 and $525,000 , respectively. Directors’ and Executive Officers’ Deferred Compensation Plan (“Deferred Compensation Plan”) – The Deferred Compensation Plan is a nonqualified deferred compensation plan. Directors may elect to defer their monthly directors’ fees until retirement with no income tax payable by the director until retirement benefits are received. The Chairman, President, and Executive and Senior Vice Presidents of the Company may also defer salary into the Deferred Compensation Plan. The Company accrues annual interest on the unfunded liability under the Deferred Compensation Plan based upon a formula relating to gross revenues, which was 2.98% , 2.97% and 3.61% for the years ended March 31, 2023, 2022 and 2021, respectively. The estimated liability under the Deferred Compensation Plan is accrued as earned by the participants. At March 31, 2023 and 2022, the Company’s aggregate liability under the Deferred Compensation Plan was $326,000 and $237,000 , respectively, which is recorded in accrued expenses and other liabilities in the accompanying consolidated balance sheets. 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; however, any awards granted prior to their respective expiration dates remain outstanding subject to their terms. Each option granted under the 2003 Plan has an exercise price equal to the fair market 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 has reserved 1,800,000 shares of its common stock for issuance 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, giving consideration to 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 during the years ended March 31, 2023, 2022 and 2021 under the Stock Option Plans. As of March 31, 2023, 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 years ended March 31, 2023, 2022 and 2021 under the Stock Option Plans. The following table presents the activity related to stock options under the Stock Option Plans for the years indicated: Year Ended March 31, 2023 2022 2021 Weighted Weighted Weighted Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Balance, beginning of period 17,332 $ 2.78 23,332 $ 2.78 43,332 $ 2.69 Options exercised (1,511) 2.78 (6,000) 2.78 (20,000) 2.58 Options expired (1,511) 2.78 — — — — Balance, end of period 14,310 $ 2.78 17,332 $ 2.78 23,332 $ 2.78 Additional information regarding stock options outstanding as of March 31, 2023 is as follows: Options Outstanding Options Exercisable Weighted Avg Weighted Weighted Remaining Average Average Range of Contractual Exercise Exercise Exercise Price Life (years) Number Price Number Price $1.00 - $3.00 0.29 14,310 $ 2.78 14,310 $ 2.78 The following table presents information on stock options outstanding, less estimated forfeitures, as of March 31, 2023 and 2022: March 31, 2023 March 31, 2022 Stock options fully vested and expected to vest: Number 14,310 17,332 Weighted average exercise price $ 2.78 $ 2.78 Aggregate intrinsic value (1) $ 37,000 $ 83,000 Weighted average contractual term of options (years) 0.29 1.29 Stock options fully vested and currently exercisable: Number 14,310 17,332 Weighted average exercise price $ 2.78 $ 2.78 Aggregate intrinsic value (1) $ 37,000 $ 83,000 Weighted average contractual term of options (years) 0.29 1.29 (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. The total intrinsic value of stock options exercised was $7,000 , $25,000 and $68,000 for the years ended March 31, 2023, 2022 and 2021, respectively. During the fiscal year ended March 31, 2023, the Company granted a total of 71,696 shares of restricted stock pursuant to the 2017 Plan of which vesting for 15,571 shares were time based and 56,125 shares were performance. During the fiscal year ended March 31, 2022, the Company granted a total of 69,285 shares of restricted stock pursuant to the 2017 Plan of which vesting for 15,274 shares were time based and 54,011 were performance based. Performance-based shares are subject to attaining certain pre-established 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 was $390,000 , $319,000 , and $352,000 for the years ended March 31, 2023, 2022, and 2021, respectively. The unrecognized stock-based compensation related to restricted stock was $440,000 and $401,000 at March 31, 2023 and 2022. The weighted average vesting period for the restricted stock was 1.12 years and 1.53 years at March 31, 2023 and 2022, respectively. The following table presents the activity related to restricted stock for the years ended March 31, 2023 and 2022: 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 Year Ended March 31, 2023 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 26,855 $ 6.02 121,492 $ 5.70 148,347 $ 5.76 Granted 15,571 6.30 56,125 6.30 71,696 6.30 Forfeited — — (2,977) 7.56 (2,977) 7.56 Vested (12,449) 6.07 (41,995) 5.26 (54,444) 5.45 Balance, end of period 29,977 $ 6.14 132,645 $ 6.05 162,622 $ 6.07 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 Year Ended March 31, 2022 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 45,616 $ 6.57 96,772 $ 5.27 142,388 $ 5.69 Granted 15,274 7.08 54,011 7.06 69,285 7.06 Forfeited (4,417) 5.82 (16,559) 5.55 (20,976) 5.61 Vested (29,618) 7.43 (12,732) 8.35 (42,350) 7.71 Balance, end of period 26,855 $ 6.02 121,492 $ 5.70 148,347 $ 5.76 Employee Stock Ownership Plan - The Company sponsors an ESOP that covers all employees with at least one year and 1,000 hours of service who are over the age of 21. For the years ended March 31, 2023, 2022 and 2021, the Bank purchased 25,000 , 25,000 and 5,354 shares of common stock, respectively, on the open market and contributed such shares to the ESOP as a discretionary employer contribution. As of March 31, 2023, 2022 and 2021, all shares of common stock purchased for the ESOP have been allocated to participant accounts. The Company recorded employee benefits expense of $ 187,000 , $192,000 and $96,000 for these contributions for the years ended March 31, 2023, 2022 and 2021, respectively, which represented the fair value of the related common stock on the date it was acquired. Shares held by the ESOP at March 31, 2023 and 2022 totaled 368,194 and 387,588 , respectively. Trust Company Stock Options – At March 31, 2023 and 2022, there were no Trust Company stock options outstanding. During the year ended March 31, 2023, no Trust Company stock options were exercised. During each of the years ended March 31, 2022 and 2021, 500 Trust Company stock options were exercised. During the year ended March 31, 2021, the Trust Company incurred stock-based compensation expense related to these options of $44,000 . There were no Trust Company stock options granted during the years ended March 31, 2023, 2022 and 2021. |
SHAREHOLDERS' EQUITY AND REGULA
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Mar. 31, 2023 | |
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS. | |
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS | 13. SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL REQUIREMENTS The Bank is a state-chartered, federally insured institution subject to various regulatory capital requirements administered by the FDIC . Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements . Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier I capital to risk-weighted assets, core capital to total assets and tangible capital to tangible assets (set forth in the table below). Management believes the Bank met all capital adequacy requirements to which it was subject as of March 31, 2023. As of March 31, 2023, the Bank was categorized as “well capitalized” under the FDIC’s regulatory framework for prompt corrective action. The Bank’s actual and required minimum capital amounts and ratios were as follows at the dates indicated (dollars in thousands): "Well Capitalized" For Capital Under Prompt Actual Adequacy Purposes Corrective Action March 31, 2023 Amount Ratio Amount Ratio Amount Ratio Total Capital: (To Risk-Weighted Assets) $ 180,001 16.94 % $ 85,013 8.0 % $ 106,266 10.0 % Tier 1 Capital: (To Risk-Weighted Assets) 166,688 15.69 63,760 6.0 85,013 8.0 Common equity tier 1 Capital: (To Risk-Weighted Assets) 166,688 15.69 47,820 4.5 69,073 6.5 Tier 1 Capital (Leverage): (To Average Tangible Assets) 166,688 10.47 63,679 4.0 79,599 5.0 "Well Capitalized" For Capital Under Prompt Actual Adequacy Purposes Corrective Action March 31, 2022 Amount Ratio Amount Ratio Amount Ratio Total Capital: (To Risk-Weighted Assets) $ 168,486 16.38 % $ 82,305 8.0 % $ 102,881 10.0 % Tier 1 Capital: (To Risk-Weighted Assets) 155,601 15.12 61,728 6.0 82,305 8.0 Common equity tier 1 Capital: (To Risk-Weighted Assets) 155,601 15.12 46,296 4.5 66,872 6.5 Tier 1 Capital (Leverage): (To Average Tangible Assets) 155,601 9.19 67,763 4.0 84,704 5.0 In addition to the minimum common equity tier 1 (“CET1”), Tier 1 and total capital ratios, the Bank is required to maintain a capital conservation buffer consisting of additional CET1 capital in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. The capital conservation buffer is required to be an amount greater than 2.5% of risk-weighted assets. As of March 31, 2023, the Bank’s CET1 capital exceeded the required capital conservation buffer at an amount greater than 2.5%. For a bank holding company, such as Riverview Bancorp, Inc., the capital guidelines apply on a bank only basis. The Federal Reserve expects the holding company’s subsidiary banks to be well capitalized under the prompt corrective action regulations. If Riverview Bancorp, Inc. was subject to regulatory guidelines for bank holding companies at March 31, 2023, it would have exceeded all regulatory capital requirements. At periodic intervals, the Company’s banking regulators routinely examine the Company’s financial condition and risk management processes as part of their legally prescribed oversight. Based on their examinations, these regulators can direct that the Company’s consolidated financial statements be adjusted in accordance with their findings. A future examination could include a review of certain transactions or other amounts reported in the Company’s 2023 consolidated financial statements . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 14. 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 or loss 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 years ended March 31, 2023, 2022 and 2021, there were no stock options excluded in computing diluted EPS. The following table presents a reconciliation of the components used to compute basic and diluted EPS for the years indicated: Year Ended March 31, (Dollars and share data in thousands, except per share data) 2023 2022 2021 Basic EPS computation: Numerator-net income $ 18,069 $ 21,820 $ 10,472 Denominator-weighted average common shares outstanding 21,638 22,213 22,296 Basic EPS $ 0.84 $ 0.98 $ 0.47 Diluted EPS computation: Numerator-net income $ 18,069 $ 21,820 $ 10,472 Denominator-weighted average common shares outstanding 21,638 22,213 22,296 Effect of dilutive stock options 8 12 17 Weighted average common shares and common stock equivalents 21,646 22,225 22,313 Diluted EPS $ 0.83 $ 0.98 $ 0.47 On March 9, 2022, the Company announced that its Board of Directors authorized a stock repurchase program (the “March 2022 repurchase program”). Under the March 2022 repurchase program, the Company was authorized to repurchase up to $5.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in private negotiated transactions, over a period beginning on March 21, 2022 and continuing until the earlier of the completion of the stock repurchase program or September 9, 2022. The Company completed the March 2022 repurchase program on September 8, 2022, repurchasing 718,734 shares at an average price of $6.96 per share and at a total cost of $5.0 million. All shares repurchased under the March 2022 program were retired as of September 30, 2022. On November 17, 2022, the Company announced that its Board of Directors authorized a stock repurchase programs (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 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. As of March 31, 2023, the Company had repurchased 285,172 shares at an average price of $6.74 per share and at a total cost of $1.9 million. Shares repurchased under the November 2022 repurchase program are retired as settled. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 15. 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): Inputs that are quoted unadjusted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means. Significant unobservable inputs (Level 3): Inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. 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 March 31, 2023 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 40,261 $ — $ 40,261 $ — Agency securities 85,907 — 85,907 — Real estate mortgage investment conduits 28,877 — 28,877 — Residential mortgage-backed securities 15,471 — 15,471 — Other mortgage-backed securities 40,983 — 40,983 — Total assets measured at fair value on a recurring basis $ 211,499 $ — $ 211,499 $ — Total Estimated Estimated Fair Value Measurements Using March 31, 2022 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 39,604 $ — $ 39,604 $ — Agency securities 40,705 — 40,705 — Real estate mortgage investment conduits 32,717 — 32,717 — Residential mortgage-backed securities 16,945 — 16,945 — Other mortgage-backed securities 35,811 — 35,811 — Total assets measured at fair value on a recurring basis $ 165,782 $ — $ 165,782 $ — There were no transfers of assets into or out of Levels 1, 2 or 3 during the years ended March 31, 2023 and 2022. The following methods were used to estimate the fair value of investment securities in the above table: 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. The following tables present assets that are measured at estimated fair value on a nonrecurring basis at the dates indicated (in thousands): Total Estimated Fair Value Estimated Measurements Using March 31, 2023 Fair Value Level 1 Level 2 Level 3 Impaired loans $ 89 $ — $ — $ 89 March 31, 2022 Impaired loans $ 228 $ — $ — $ 228 The following table presents quantitative information about Level 3 inputs for financial instruments measured at fair value on a nonrecurring basis at March 31, 2023 and 2022: Valuation Significant Unobservable Technique Inputs Range Impaired loans Appraised Adjustment for market conditions N/A (1) Discounted cash flows Discount rate 5.375 % - 8.000% (1) There were no adjustments to appraised values of impaired loans as of March 31, 2023 and 2022. For information regarding the Company’s method for estimating the fair value of impaired loans, see Note 1 – Summary of Significant Accounting Policies – Allowance for Loan Losses. In determining the estimated net realizable value of the underlying collateral, the Company primarily uses third-party appraisals which may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available and include consideration of variations in location, size, and income production capacity of the property. Additionally, the appraisals are periodically further adjusted by the Company in consideration of charges that may be incurred in the event of foreclosure and are based on management’s historical knowledge, changes in business factors and changes in market conditions. Impaired loans are reviewed and evaluated quarterly for additional impairment and adjusted accordingly based on the same factors identified above. Because of the high degree of judgment required in estimating the fair value of collateral underlying impaired loans and because of the relationship between fair value and general economic conditions, the Company considers the fair value of impaired loans to be highly sensitive to changes in market conditions. 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 amounts and estimated fair values of financial instruments are as follows at the dates indicated (in thousands): Carrying Estimated March 31, 2023 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 22,044 $ 22,044 $ — $ — $ 22,044 Certificates of deposit held for investment 249 — 248 — 248 Investment securities available for sale 211,499 — 211,499 — 211,499 Investment securities held to maturity 243,843 — 210,214 — 210,214 Loans receivable, net 993,547 — — 931,784 931,784 FHLB stock 6,867 — 6,867 — 6,867 Liabilities: Certificates of deposit 128,833 — 126,072 — 126,072 FHLB advances 123,754 — 123,679 — 123,679 Junior subordinated debentures 26,918 — — 17,698 17,698 Carrying Estimated March 31, 2022 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 241,424 $ 241,424 $ — $ — $ 241,424 Certificates of deposit held for investment 249 — 253 — 253 Investment securities available for sale 165,782 — 165,782 — 165,782 Investment securities held to maturity 253,100 — 236,029 — 236,029 Loans receivable, net 975,885 — — 962,893 962,893 FHLB stock 2,019 — 2,019 — 2,019 Liabilities: Certificates of deposit 111,372 — 109,860 — 109,860 Junior subordinated debentures 26,833 — — 16,046 16,046 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. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Mar. 31, 2023 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 16. 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 with the exception of 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, with the exception of 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 on a monthly basis, 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 years ended March 31, 2023, 2022 and 2021, substantially all of the Company’s revenues within the scope of ASC 606 were for performance obligations satisfied at a point in time. Disaggregation of Revenue The following table includes the Company’s non-interest income disaggregated by type of service (in thousands): Year Ended March 31, 2023 2022 2021 Asset management fees $ 4,734 $ 4,107 $ 3,646 Debit card and ATM fees 3,341 3,499 3,103 Deposit related fees 1,737 1,634 1,514 Loan related fees 539 1,247 1,229 BOLI (1) 821 800 813 Net gains on sales of loans held for sale (1) — — 28 FHLMC loan servicing fees (1) 66 85 94 BOLI death benefit in excess of cash surrender value (1) — 500 — Other, net 956 872 663 Total non-interest income, net $ 12,194 $ 12,744 $ 11,090 (1) Revenues recognized within the scope of ASC 606 Asset management fees : Asset management fees are variable, since they are based on the customer’s underlying portfolio value, which is subject to market conditions and amounts invested by clients through the Trust Company. Asset management fees are recognized over the period that services are provided, and when the portfolio values are known or can be estimated at the end of each quarter. Debit card and ATM fees : Debit card and ATM interchange income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from debit cardholder transactions through the MasterCard® payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders’ debit card. Certain expenses directly associated with the debit cards are recorded on a net basis with the interchange income. Deposit related fees : Fees are earned on the Bank’s deposit accounts for various products offered to or services performed for the Bank’s customers. Fees include business account fees, non-sufficient fund fees, stop payment fees, wire services, safe deposit box and others. These fees are recognized on a daily, monthly or quarterly basis, depending on the type of service. Loan related fees : Non-interest loan fee income is earned on loans that the Bank services, excluding loans serviced for the FHLMC which are not within the scope of ASC 606. Loan related fees include prepayment fees, late charges, brokered loan fees, maintenance fees and others. These fees are recognized on a daily, monthly, quarterly or annual basis, depending on the type of service. Other : Fees earned on other services, such as merchant services or occasional non-recurring type services, are recognized at the time of the event or the applicable billing cycle. Contract Balances As of March 31, 2023 and 2022, 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 March 31, 2023 and 2022 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Off-balance sheet arrangements – In the normal course of business, the Company is a party to financial instruments with off-balance sheet risk in order to meet the financing needs of its customers. These financial instruments generally include commitments to originate mortgage, commercial and consumer loans. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s maximum exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. Commitments to originate loans are conditional and are honored for up to 45 days subject to the Company’s usual terms and conditions. Collateral is not required to support commitments. 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 are listed below at the dates indicated (in thousands): Contract or Notional Amount March 31, March 31, 2023 2022 Commitments to extend credit: Adjustable-rate $ 12,489 $ 17,125 Fixed-rate 18 2,895 Standby letters of credit 1,600 1,780 Undisbursed loan funds and unused lines of credit 130,269 137,460 Total $ 144,376 $ 159,260 At March 31, 2023, the Company had no commitments to sell residential loans to the FHLMC. Other Contractual Obligations – In connection with certain asset sales, the Company typically makes representations and warranties about the underlying assets conforming to specified guidelines. If the underlying assets do not conform to the specifications, the Company may have an obligation to repurchase the assets or indemnify the purchaser against loss. At March 31, 2023, loans under warranty totaled $36.5 million, which substantially represented the unpaid principal balance of the Company’s loans serviced for the FHLMC. The Company believes that the potential for loss under these arrangements is remote. At March 31, 2023, the Company had an allowance for FHLMC-serviced loans of $12,000 . 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 has not incurred any losses related to public depository funds for the years ended March 31, 2023, 2022 and 2021. The Bank has entered into employment contracts with certain key employees, which provide for contingent payments subject to future events. Litigation –The Company is periodically party to litigation arising in the ordinary course of business, some of which involve claims for substantial or uncertain amounts. At least quarterly, we assess liabilities and contingencies in connection with all outstanding or new legal matters, utilizing the most recent information available. For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established. If we determine that a loss from a matter is probable and the amount of the loss can be reasonably estimated, we will establish an accrual for the loss. Once established, an accrual is adjusted as appropriate to reflect any subsequent developments in the specific legal matter. It is inherently difficult to estimate the amount of loss and there may be matters for which a loss is probable or reasonably possible but not currently estimable. Actual losses may be in excess of any established accrual or the range of reasonably possible loss. Management's estimate will change from time to time. 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 most recent information available, management has concluded that a loss is not probable at this time and the amount of any potential loss cannot be reasonably estimated. Accordingly, no accrual has been established. Any estimate or determination relating to the future resolution of legal matters is uncertain and involves significant judgment. We usually are unable 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. Although there can be no assurance as to the ultimate outcome of a specific legal matter, we believe we have meritorious defenses to the claims asserted against us in the current outstanding legal matter, and we intend to continue to vigorously defend ourselves. It is possible that the ultimate resolution of a matter, if unfavorable, may be material to the Company's results of operations for any particular period. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2023 | |
LEASES | |
LEASES | 18. 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 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). ROU assets and 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 sheet at the dates indicated (dollars in thousands): March 31, March 31, Classification in the Leases 2023 2022 consolidated balance sheets Finance lease ROU assets $ 1,278 $ 1,355 Financing lease ROU assets Finance lease liability $ 2,229 $ 2,283 Finance lease liability Finance lease remaining lease term 16.68 years 17.68 years Finance lease discount rate 7.16 % 7.16 % Operating lease ROU assets $ 6,705 $ 7,907 Prepaid expenses and other assets Operating lease liabilities $ 7,064 $ 8,306 Accrued expenses and other liabilities Operating lease weighted-average remaining lease term 6.15 years 7.02 years Operating lease weighted-average discount rate 1.78 % 1.81 % 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): Year ended Year ended Year ended Lease Costs March 31, 2023 March 31, 2022 March 31, 2021 Finance lease amortization of ROU asset $ 77 $ 77 $ 77 Finance lease interest on lease liability 162 165 168 Operating lease costs 1,133 1,266 1,312 Variable lease costs 209 209 209 Total lease cost (1) $ 1,581 $ 1,717 $ 1,766 (1) Income related to sub-lease activity is not significant and not presented herein . Supplemental cash flow information – Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities was $1.4 million, $1.5 million and $1.5 million for the years ended March 31, 2023, 2022 and 2021, respectively. During the fiscal year ended March 31, 2023, the Company did not record any ROU assets that were exchanged for operating lease liabilities. During the years ended March 31, 2022 and 2021, the Company recorded operating lease ROU assets that were exchanged for operating lease liabilities of $441,000 and $6.1 million, respectively. The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of March 31, 2023 (in thousands): Year Ending March 31: Operating Finance Leases Lease 2024 $ 1,370 $ 219 2025 1,375 222 2026 1,125 226 2027 1,116 230 2028 899 232 Thereafter 1,632 2,712 Total minimum lease payments 7,517 3,841 Less: amount of lease payment representing interest (453) (1,612) Lease liabilities $ 7,064 $ 2,229 |
RIVERVIEW BANCORP, INC. (PARENT
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | 12 Months Ended |
Mar. 31, 2023 | |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | 19. BALANCE SHEETS AS OF MARCH 31, 2023 AND 2022 (In thousands) 2023 2022 ASSETS Cash and cash equivalents $ 5,480 $ 10,867 Investment in the Bank 175,833 173,223 Other assets 2,342 1,321 TOTAL ASSETS $ 183,655 $ 185,411 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other liabilities $ 224 $ 112 Dividend payable 1,274 1,217 Borrowings 26,918 26,833 Shareholders' equity 155,239 157,249 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 183,655 $ 185,411 STATEMENTS OF INCOME FOR THE YEARS ENDED MARCH 31, 2023, 2022 AND 2021 (In thousands) 2023 2022 2021 INCOME: Interest on investment securities and other short-term investments $ 129 $ 16 $ 17 Total income 129 16 17 EXPENSE: Management service fees paid to the Bank 143 143 143 Other expenses 1,424 670 731 Total expense 1,567 813 874 LOSS BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF THE BANK (1,438) (797) (857) BENEFIT FOR INCOME TAXES (303) (167) (180) LOSS OF PARENT COMPANY (1,135) (630) (677) EQUITY IN UNDISTRIBUTED INCOME OF THE BANK 19,204 22,450 11,149 NET INCOME $ 18,069 $ 21,820 $ 10,472 There were no items of other comprehensive income that were solely attributable to the parent company. RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2023, 2022 AND 2021 (In thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 18,069 $ 21,820 $ 10,472 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed income of the Bank (19,204) (22,450) (11,149) Amortization expense 85 85 86 Provision (benefit) for deferred income taxes (1) 2 — Stock-based compensation expense 390 319 396 Changes in assets and liabilities: Other assets (1,019) 131 224 Accrued expenses and other liabilities 112 48 (417) Net cash used in operating activities (1,568) (45) (388) CASH FLOWS FROM INVESTING ACTIVITIES: Dividend from the Bank 8,000 7,500 6,000 Net cash provided by investing activities 8,000 7,500 6,000 CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (5,117) (4,670) (4,478) Proceeds from exercise of stock options 4 16 50 Repurchase of common stock (6,706) (1,940) (1,447) Net cash used in financing activities (11,819) (6,594) (5,875) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,387) 861 (263) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 10,867 10,006 10,269 CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,480 $ 10,867 $ 10,006 RIVERVIEW BANCORP, INC. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): (Dollars in thousands, except per share data) Three Months Ended Fiscal 2023: March 31 December 31 September 30 June 30 Interest and dividend income $ 13,941 $ 14,443 $ 14,088 $ 13,194 Interest expense 2,127 743 657 533 Net interest income 11,814 13,700 13,431 12,661 Provision for loan losses 750 — — — Non-interest income, net 2,971 2,963 3,134 3,126 Non-interest expense 9,950 9,848 9,804 9,769 Income before income taxes 4,085 6,815 6,761 6,018 Provision for income taxes 1,102 1,575 1,567 1,366 Net income $ 2,983 $ 5,240 $ 5,194 $ 4,652 Basic earnings per common share (1) $ 0.14 $ 0.24 $ 0.24 $ 0.21 Diluted earnings per common share (1) $ 0.14 $ 0.24 $ 0.24 $ 0.21 Fiscal 2022: Interest and dividend income $ 12,389 $ 12,551 $ 12,965 $ 11,920 Interest expense 483 492 589 636 Net interest income 11,906 12,059 12,376 11,284 Recapture of loan losses (650) (1,275) (1,100) (1,600) Non-interest income, net 2,966 3,116 3,074 3,588 Non-interest expense 10,115 9,279 8,187 9,137 Income before income taxes 5,407 7,171 8,363 7,335 Provision for income taxes 1,282 1,661 1,933 1,580 Net income $ 4,125 $ 5,510 $ 6,430 $ 5,755 Basic earnings per common share (1) $ 0.19 $ 0.25 $ 0.29 $ 0.26 Diluted earnings per common share (1) $ 0.19 $ 0.25 $ 0.29 $ 0.26 (1) Quarterly earnings per common share may vary from annual earnings per common share due to rounding . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
PRINCIPLES OF CONSOLIDATION | Principles of Consolidation – The accompanying consolidated financial statements include the accounts of Riverview Bancorp, Inc.; its wholly-owned subsidiary, Riverview Bank (the “Bank”); the Bank’s wholly-owned subsidiaries, Riverview Services, Inc. and Riverview Trust Company (the “Trust Company”) (collectively referred to as the “Company”). As a Washington state-chartered commercial bank, the Bank’s regulators are the Washington State Department of Financial Institutions (“WDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). The Board of Governors of the Federal Reserve System (“Federal Reserve”) is the primary federal regulator for Riverview Bancorp, Inc. All inter-company transactions and balances have been eliminated in consolidation. For the period from April 1, 2017 through December 2019, the Trust Company was a wholly-owned subsidiary of the Bank. In December 2019, the Trust Company issued 1,500 shares of Trust Company stock in conjunction with the exercise of 1,500 Trust Company stock options by the Trust Company’s President and Chief Executive Officer. In both October 2020 and May 2021, the Trust Company issued an additional 500 shares of Trust Company stock upon the exercise of options for 500 shares of Trust Company common stock by the Trust Company’s President and Chief Executive Officer. In August 2022, the Trust Company repurchased all the outstanding shares held by its noncontrolling interest owner. Upon repurchase, these shares were retired. This transaction resulted in the Bank’s ownership increasing from 97.3% to 100% . The book value of the noncontrolling interest was $234,000 prior to the share repurchase. These amounts were insignificant and are not presented separately in the accompanying consolidated financial statements. The Company has three subsidiary grantor trusts which were established in connection with the issuance of trust preferred securities (see Note 10). In accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”), the accounts and transactions of the trusts are not included in the accompanying consolidated financial statements. |
Nature of Operations | Nature of Operations – The Bank is a community-oriented financial institution which operates 17 branches in rural and suburban communities in southwest Washington State and Multnomah, Washington and Marion counties of Oregon. The Bank is engaged primarily in the business of attracting deposits from the general public and using such funds, together with other borrowings, to make various commercial business, commercial real estate, land, multi-family real estate, real estate construction and consumer loans. Additionally, the Trust Company offers trust and investment services and Riverview Services, Inc. acts as a trustee for deeds of trust on mortgage loans granted by the Bank and receives a reconveyance fee for each deed of trust. |
Business segments | Business segments – The Company’s operations are managed along two operating segments, consisting of banking operations performed by the Bank and trust and investment services performed by the Trust Company. While the chief operating decision maker uses financial information related to these segments to analyze business performance and allocate resources, the trust and investment services segment does not meet the quantitative threshold under GAAP to be considered a reportable segment. As such, these operating segments are aggregated into a single reportable operating segment in the consolidated financial statements. No revenues are derived from foreign countries. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements – The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of related revenue and expense during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, the valuation of investment securities, and the valuation of goodwill for potential impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include amounts on hand, due from banks and interest-earning deposits in other banks. Cash and cash equivalents have a maturity of 90 days or less at the time of purchase. |
Certificates of Deposit Held for Investment | Certificates of Deposit Held for Investment – Certificates of deposit held for investment include amounts invested with financial institutions at a stated interest rate and maturity date. Early withdrawal penalties apply; however, the Company plans to hold these investments to maturity. |
Investment Securities | Investment Securities – Investments in debt securities are classified as held to maturity when the Company has the ability and positive intent to hold such securities to maturity. Investments in debt securities held to maturity are carried at amortized cost. Unrealized losses on investments in debt securities held to maturity due to fluctuations in fair value are recognized when it is determined that a credit-related other than temporary decline in value has occurred. Investments in debt securities bought and held principally for the purpose of sale in the near-term are classified as trading securities. Investments in debt securities that the Company intends to hold for an indefinite period, but not necessarily to maturity, are classified as available for sale. Such debt securities may be sold to implement the Company’s asset/liability management strategies and in response to changes in interest rates and similar factors. Investments in debt securities available for sale are reported at estimated fair value. Unrealized gains and losses on investment securities available for sale, net of the related deferred tax effect, are included in total comprehensive income and are reported as a net amount in a separate component of shareholders’ equity entitled “accumulated other comprehensive income (loss).” Realized gains and losses on sales of investments in debt securities available for sale, determined using the specific identification method, are included in earnings on the trade date. Amortization of premiums and accretion of discounts are recognized in interest income over the period to contractual maturity or expected call, if sooner. The Company’s investment portfolio consists of debt securities and does not include any equity securities. The Company analyzes investments in debt securities for other than temporary impairment (“OTTI”) on a quarterly basis. OTTI is separated into a credit component and a noncredit component. Credit component losses are reported in non-interest income when the present value of expected future cash flows is less than the amortized cost. Noncredit component losses are recorded in other comprehensive income (loss) when the Company (1) does not intend to sell the security or (2) is not more likely than not to have to sell the security prior to the security’s anticipated recovery. If the Company is likely to sell an investment in a debt security, any noncredit component losses are recognized and are reported in non-interest income. |
Loans Receivable | Loans Receivable – Loans are stated at the amount of unpaid principal, reduced by net deferred loan origination fees and an allowance for loan losses. Interest on loans is accrued daily based on the principal amount outstanding. Loans are reviewed regularly and it is the Company’s general policy that a loan is past due when it is 30 days to 89 days delinquent. In general, when a loan is 90 days or more delinquent or when collection of principal or interest appears doubtful, it is placed on non-accrual status, at which time the accrual of interest ceases and a reserve for unrecoverable accrued interest is established and charged against operations. As a general practice, payments received on non-accrual loans are applied to reduce the outstanding principal balance on a cost recovery method. Also, as a general practice, a loan is not removed from non-accrual status until all delinquent principal, interest and late fees have been brought current and the borrower has demonstrated a history of performance based upon the contractual terms of the note. A history of repayment performance generally would be a minimum of six months. Loan origination and commitment fees and certain direct loan origination costs are deferred and amortized as an adjustment of the yield of the related loan. |
Acquired Loans | Acquired Loans – Purchased loans, including loans acquired in business combinations, are recorded at their estimated fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired (“PCI”) or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The excess of the cash flows expected to be collected over a PCI loan’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the PCI loan using the effective yield method. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company ’s estimate of the credit losses expected to occur and would be considered in determining the estimated fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at the purchase date in excess of fair value are adjusted through a change to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording an allowance for loan losses. The Company had no PCI loans as of March 31, 2023 and 2022. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the lives of the related loans. Any subsequent deterioration in credit quality is recognized by recording an allowance for loan losses. |
Allowance for Loan Losses | Allowance for Loan Losses – The allowance for loan losses is maintained at a level sufficient to provide for estimated loan losses based on evaluating known and inherent risks in the loan portfolio. The allowance is provided based upon management’s ongoing quarterly assessment of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions and a detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes techniques to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are considered impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows or collateral value (less estimated selling costs, if applicable) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans based on the Company’s risk rating system and historical loss experience adjusted for qualitative factors. The Company calculates its historical loss rates using the average of the last four quarterly 24-month periods. The Company calculates and applies its historical loss rates by individual loan types in its loan portfolio. These historical loss rates are adjusted for qualitative and environmental factors. An unallocated component is maintained to cover uncertainties that the Company believes have resulted in incurred losses that have not yet been allocated to specific elements of the general and specific components of the allowance for loan losses. Such factors include uncertainties in economic conditions, uncertainties in identifying triggering events that directly correlate to subsequent loss rates, changes in appraised value of underlying collateral, risk factors that have not yet manifested themselves in loss allocation factors and historical loss experience data that may not precisely correspond to the current loan portfolio or economic conditions. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the loan portfolio. The appropriate allowance level is estimated based upon factors and trends identified by the Company as of the date of the filing of the consolidated financial statements. When available information confirms that specific loans or portions thereof are uncollectible, identified amounts are charged against the allowance for loan 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. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts when due (principal and interest) according to the contractual terms of the loan agreement. Typically, factors used in determining if a loan is impaired include, but are not limited to, whether the loan is 90 days or more delinquent, internally designated as substandard or worse, on non-accrual status or represents a troubled debt restructuring (“TDR”). The majority of the Company’s impaired loans are considered collateral dependent. When a loan is considered collateral dependent, impairment is measured using the estimated value of the underlying collateral, less any prior liens, and when applicable, less estimated selling costs. For impaired loans that are not collateral dependent, impairment is measured using the present value of expected future cash flows, discounted at the loan’s original effective interest rate. When the estimated net realizable value of the impaired loan is less than the recorded investment in the loan (including accrued interest, net deferred loan fees or costs, and unamortized premium or discount), an impairment is recognized by adjusting an allocation of the allowance for loan losses. Subsequent to the initial allocation of allowance to the individual loan, the Company may conclude that it is appropriate to record a charge-off of the impaired portion of the loan. When a charge-off is recorded, the loan balance is reduced and the specific allowance is eliminated. Generally, when a collateral dependent loan is initially measured for impairment and has not had an appraisal of the collateral in the last six months, the Company obtains an updated market valuation. Subsequently, the Company generally obtains an updated market valuation of the collateral on an annual basis. The collateral valuation may occur more frequently if the Company determines that there is an indication that the market value may have declined. In accordance with the Company’s policy guidelines, unsecured loans are generally charged-off when no payments have been received for three consecutive months unless an alternative action plan is in effect. Consumer installment loans delinquent six months or more that have not received at least 75% of their required monthly payments in the last 90 days are charged-off. In addition, loans discharged in bankruptcy proceedings are charged-off. Loans under bankruptcy protection with no payments received for four consecutive months are charged-off. The outstanding balance of a secured loan that is in excess of the net realizable value of the underlying collateral is generally charged-off if no payments are received for four to five consecutive months. However, charge-offs are postponed if alternative proposals to restructure, obtain additional guarantors, obtain additional assets as collateral or a potential sale of the underlying collateral would result in full repayment of the outstanding loan balance. Once any other potential sources of repayment are exhausted, the impaired portion of the loan is charged-off. Regardless of whether a loan is unsecured or collateralized, once an amount is determined to be a confirmed loan loss it is charged-off. A provision for loan losses is charged against income and is added to the allowance for loan losses based on regular assessments of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. Management’s evaluation of the allowance for loan losses 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 impaired 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 allowance for loan losses and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. |
Allowance for Unfunded Loan Commitments | Allowance for Unfunded Loan Commitments – The allowance for unfunded loan commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded loan commitments is included in accrued expenses and other liabilities in the consolidated balance sheets, with changes to the balance charged against non-interest expense. |
REO | REO – REO consists of properties acquired through foreclosure and is initially recorded at the estimated fair value of the properties, less estimated costs of disposal. At the time of foreclosure, specific charge-offs are taken against the allowance for loan losses based upon a detailed analysis of the fair value of collateral on the underlying loans on which the Company is in the process of foreclosing. Subsequently, the Company performs an evaluation of the properties and records a valuation allowance with an offsetting charge to REO expenses for any declines in value. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. The amounts the Company will ultimately recover and record in the accompanying consolidated financial statements from the disposition of REO may differ from the amounts used in arriving at the net carrying value of these assets because of future market factors beyond the Company’s control or because of changes in the Company’s strategy for the sale of the property. Costs relating to development and improvement of the properties or assets are capitalized, while costs relating to holding the properties or assets are expensed. The Company held no REO at March 31, 2023 and 2022. At March 31, 2023, there were no mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock – The Bank, as a member of the Federal Home Loan Bank of Des Moines (“FHLB”), is required to maintain a minimum investment in capital stock of the FHLB based on specific percentages of its outstanding FHLB advances. The Company’s investment in FHLB stock is carried at cost, which approximates fair value. The Company views its investment in FHLB stock as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, the value is determined based on the ultimate redemption of the par value rather than recognizing temporary declines in value. The determination of whether a decline affects the ultimate redemption value is influenced by criteria such as: (1) the significance of any decline in net assets of the FHLB as compared to the capital stock amount of the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB, and (4) the liquidity position of the FHLB. The Company evaluated its investment in FHLB stock for OTTI, consistent with its accounting policy. Based on the Company’s evaluation, the Company determined there is not any OTTI on its FHLB stock at March 31, 2023. |
Premises and Equipment | Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Leasehold improvements are amortized over the estimated term of the related lease or the estimated useful life of the improvements, whichever is less. Depreciation and amortization are generally computed on the straight-line method over the following estimated useful lives: buildings and improvements – up to 45 years ; furniture and equipment – 3 to 20 years ; and leasehold improvements – 15 to 25 years , or estimated lease term if shorter. Gains or losses on dispositions are reflected in earnings. The cost of maintenance and repairs is charged to expense as incurred. Assets are reviewed for impairment when events indicate their carrying value may not be recoverable. If management determines impairment exists the asset is reduced by an offsetting charge to expense. The assets held under the finance lease are amortized on a straight-line basis over the lease term and the amortization is included in depreciation and amortization expense. |
Mortgage Servicing Rights ("MSRs") | Mortgage Servicing Rights (“MSRs”) – The Company services certain loans that it has originated and sold to the Federal Home Loan Mortgage Corporation (“FHLMC”) . Loan servicing includes collecting payments; remitting funds to investors, insurance companies and tax authorities; collecting delinquent payments; and foreclosing on properties when necessary. Fees earned for servicing loans for the FHLMC are reported as income when the related mortgage loan payments are collected. Loan servicing costs are charged to expense as incurred. In addition, the Company has recorded MSRs, which represent the rights to service loans. The Company records its originated MSRs at fair value in accordance with GAAP, which requires the Company to allocate the total cost of all mortgage loans sold between loans sold with MSRs retained and loans with MSRs released, based on their relative fair values if it is practicable to estimate those fair values. The Company stratifies its MSRs based on the predominant characteristics of the underlying financial assets including the coupon interest rate and the contractual maturity of the mortgage. The Company is amortizing the MSRs in proportion to and over the period of estimated net servicing income. MSRs were fully amortized at March 31, 2023 compared to an insignificant balance at March 31, 2022. |
Business Combinations, CDI and Goodwill | Business Combinations, CDI and Goodwill – GAAP requires the total purchase price in a business combination to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Subsequent adjustments to the initial allocation of the purchase price may be made related to fair value estimates for which all relevant information has not been obtained, known, or discovered relating to the acquired entity during the allocation period (which is the period of time required to identify and measure the estimated fair values of the assets acquired and liabilities assumed in a business combination). The allocation period is generally limited to one year following consummation of a business combination. CDI represents the value assigned to demand, interest checking, money market and savings accounts acquired as part of a business combination. CDI represents the future economic benefit of the potential cost savings from acquiring core deposits as part of a business combination compared to the cost of alternative funding sources. CDI is amortized to non-interest expense using an accelerated method based on an estimated runoff of related deposits over a period of ten years . CDI is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. At both March 31, 2023 and 2022, gross CDI was $1.4 million. At March 31, 2023 and 2022, accumulated amortization was $984,000 and $868,000 , respectively. The amortization expense for CDI in future years is estimated to be $108,000 , $100,000 , $93,000 , and $78,000 for the years ending March 31, 2024, 2025, 2026, and 2027, respectively. Goodwill and certain other intangibles generally arise from business combinations. Goodwill and other intangibles generated from business combinations that are deemed to have indefinite lives are not subject to amortization and are instead tested for impairment not less than annually. The Company performs an annual review in the third quarter of each year, or more frequently if indicators of potential impairment exist, to determine if the recorded goodwill is impaired (see Note 7). |
BOLI | BOLI – BOLI policies are recorded at their cash surrender value less applicable surrender charges. Income from BOLI is recognized when earned. |
Advertising and Marketing | Advertising and Marketing – Costs incurred for advertising, merchandising, market research, community investment and business development are classified as advertising and marketing expense and are expensed as incurred. |
Income Taxes | Income Taxes – Income taxes are accounted for using the asset and liability method. Under this method, a deferred tax asset or liability is determined based on the enacted tax rates which will be in effect when the differences between the financial statement carrying amounts and tax basis of existing assets and liabilities are expected to be reported in the Company’s income tax returns. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established to reduce the net carrying amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the potential deferred tax asset will not be realized. The Company files a consolidated federal income tax return. The Bank provides for income taxes separately and remits to the Company amounts currently due. |
Transfer of financial assets | Transfers of financial assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Trust Assets | Trust Assets – Assets held by the Trust Company in a fiduciary or agency capacity for trust customers are not included in the consolidated financial statements because such items are not assets of the Company. Assets totaling $890.6 million were held in trust as of March 31, 2023 compared to $1.3 billion as of March 31, 2022. |
Earnings Per Share | Earnings Per Share – GAAP requires all companies whose capital structure includes dilutive potential common shares to make a dual presentation of basic and diluted earnings per share for all periods presented. The Company’s basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period , without consideration of any dilutive items. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. The Company’s diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised and has been computed after giving consideration to the weighted average diluted effect of the Company’s stock options. |
Stock-Based Compensation | Stock-Based Compensation – The Company measures compensation cost for all stock-based awards based on the grant-date fair value of the awards and recognizes compensation cost over the service period of stock-based awards. The fair value of stock options is determined using the Black-Scholes valuation model. The fair value of restricted stock is determined based on the grant date fair value of the Company’s common stock. |
Accounting Pronouncements Recently Issued or Adopted | Accounting Pronouncements Recently Issued or Adopted – In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10 and ASU 2019-11. ASU 2016-13 replaces the existing incurred losses methodology for estimating allowances with a current expected credit losses (“CECL”) methodology with respect to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held to maturity investment securities and off-balance sheet commitments. In addition, ASU 2016-13 requires credit losses relating to available for sale debt securities to be recorded through an allowance for credit losses rather than as a reduction of carrying amount. ASU 2016-13 also changes the accounting for purchased credit impaired debt securities and loans. ASU 2016-13 retains many of the current disclosure requirements in GAAP and expands certain disclosure requirements. As a “smaller reporting company” filer with the U.S. Securities and Exchange Commission, ASU 2016-13 is effective for the Company beginning April 1, 2023. Upon adoption, the Company expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for OTTI of investment securities available for sale will be replaced with an allowance approach. The Company is implementing processes and procedures to ensure it is fully compliant with the amendments at the adoption date. At this time, management does not expect the allowance for loan losses to materially change as a result of the implementation of ASU 2016-13 and expects to finalize the calculation in the first quarter of the fiscal year ending March 31, 2024. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures" ("ASU 2022-02"). ASU 2022-02 eliminates the accounting guidance for TDRs in Accounting Standards Codification (“ASC”) 310-40, "Receivables - Troubled Debt Restructurings by Creditors" for entities that have adopted the CECL model introduced by ASU 2016-13. ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, "Financial Instruments—Credit Losses—Measured at Amortized Cost". This ASU is effective upon adoption of ASU 2016-13. The adoption of ASU 2022-02 is not expected to have a material impact on the Company’s future consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). ASU 2017-04 simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2022. Early application of ASU 2017-04 is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-04 is not expected to have a material impact on the Company's future consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). ASU 2020-04 applies to contracts, hedging relationships and other transactions that reference the London Interbank Offer Rate (“LIBOR”) or other rate references expected to be discontinued because of reference rate reform. ASU 2020-04 permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract remeasurement or reassessment of a previous accounting determination. The Company's current interest rates on its junior subordinated debentures are based upon the three-month LIBOR plus a spread. In January 2021, ASU 2021-01 updated amendments in ASU 2020-04 to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification. The amendments in ASU 2021-01 have differing effective dates, beginning with interim periods including and subsequent to March 12, 2020 through December 31, 2022. In December 2022, ASU 2022-06 extended the period of time financial statement preparers can utilize the reference rate reform relief guidance. In March 2021, the Financial Conduct Authority announced that the intended cessation date of the overnight 1-, 3-, 6-, and 12-month tenors of U.S. Dollar LIBOR would be June 30, 2023, which is beyond the current sunset date of ASU 2021-01. The amendments in ASU 2022-06 defer the sunset date of ASU 2021-01 from December 31, 2022 to December 31, 2024. The Company has not adopted ASU 2020-04 as of March 31, 2023. The adoption of ASU 2020-04, as amended, is not expected to have a material impact on the Company's future consolidated financial statements. |
Reclassifications | Reclassifications – 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. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Available for sale: Municipal securities $ 47,857 $ 16 $ (7,612) $ 40,261 Agency securities 91,858 23 (5,974) 85,907 Real estate mortgage investment conduits (1) 34,247 — (5,370) 28,877 Residential mortgage-backed securities (1) 16,512 — (1,041) 15,471 Other mortgage-backed securities (2) 45,117 4 (4,138) 40,983 Total available for sale $ 235,591 $ 43 $ (24,135) $ 211,499 Held to maturity: Municipal securities $ 10,344 $ — $ (2,859) $ 7,485 Agency securities 53,941 — (5,091) 48,850 Real estate mortgage investment conduits (1) 35,186 — (4,769) 30,417 Residential mortgage-backed securities (1) 123,773 — (17,542) 106,231 Other mortgage-backed securities (3) 20,599 — (3,368) 17,231 Total held to maturity $ 243,843 $ — $ (33,629) $ 210,214 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value March 31, 2022 Available for sale: Municipal securities $ 44,104 $ 14 $ (4,514) $ 39,604 Agency securities 43,848 1 (3,144) 40,705 Real estate mortgage investment conduits (1) 35,563 1 (2,847) 32,717 Residential mortgage-backed securities (1) 17,368 13 (436) 16,945 Other mortgage-backed securities (2) 37,991 28 (2,208) 35,811 Total available for sale $ 178,874 $ 57 $ (13,149) $ 165,782 Held to maturity: Municipal securities $ 10,368 $ — $ (1,422) $ 8,946 Agency securities 45,277 — (2,450) 42,827 Real estate mortgage investment conduits (1) 39,394 — (2,457) 36,937 Residential mortgage-backed securities (1) 137,343 — (8,883) 128,460 Other mortgage-backed securities (3) 20,718 — (1,859) 18,859 Total held to maturity $ 253,100 $ — $ (17,071) $ 236,029 (1) (2) (3) |
Schedule of contractual maturities of investment securities | The contractual maturities of investment securities as of March 31, 2023 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 $ 12,442 $ 12,261 $ 4 $ 4 Due after one year through five years 82,028 78,204 42,211 39,339 Due after five years through ten years 54,035 47,214 29,695 24,965 Due after ten years 87,086 73,820 171,933 145,906 Total $ 235,591 $ 211,499 $ 243,843 $ 210,214 |
Schedule of temporarily impaired securities, fair value and unrealized losses | The fair value of temporarily impaired investment securities, the amount of unrealized losses and the length of time these unrealized losses existed are 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 March 31, 2023 Value Losses Value Losses Value Losses Available for sale: Municipal securities $ 6,277 $ (133) $ 32,797 $ (7,479) $ 39,074 $ (7,612) Agency securities 43,451 (747) 36,646 (5,227) 80,097 (5,974) Real estate mortgage investment conduits (1) 2,693 (97) 26,184 (5,273) 28,877 (5,370) Residential mortgage-backed securities (1) 3,449 (147) 12,022 (894) 15,471 (1,041) Other mortgage-backed securities (2) 13,876 (376) 26,619 (3,762) 40,495 (4,138) Total available for sale $ 69,746 $ (1,500) $ 134,268 $ (22,635) $ 204,014 $ (24,135) Held to maturity: Municipal securities $ — $ — $ 7,485 $ (2,859) $ 7,485 $ (2,859) Agency securities 8,413 (240) 40,437 (4,851) 48,850 (5,091) Real estate mortgage investment conduits (1) 2,580 (191) 27,837 (4,578) 30,417 (4,769) Residential mortgage-backed securities (1) 2 — 106,229 (17,542) 106,231 (17,542) Other mortgage-backed securities (3) — — 17,231 (3,368) 17,231 (3,368) Total held to maturity $ 10,995 $ (431) $ 199,219 $ (33,198) $ 210,214 $ (33,629) March 31, 2022 Available for sale: Municipal securities $ 32,767 $ (4,293) $ 3,282 $ (221) $ 36,049 $ (4,514) Agency securities 22,288 (1,565) 16,414 (1,579) 38,702 (3,144) Real estate mortgage investment conduits (1) 17,334 (1,310) 15,275 (1,537) 32,609 (2,847) Residential mortgage-backed securities (1) 15,702 (436) — — 15,702 (436) Other mortgage-backed securities (2) 32,408 (2,194) 769 (14) 33,177 (2,208) Total available for sale $ 120,499 $ (9,798) $ 35,740 $ (3,351) $ 156,239 $ (13,149) Held to maturity: Municipal securities $ 5,911 $ (816) $ 3,036 $ (606) $ 8,947 $ (1,422) Agency securities 35,930 (1,708) 6,897 (742) 42,827 (2,450) Real estate mortgage investment conduits (1) 26,233 (1,715) 7,735 (742) 33,968 (2,457) Residential mortgage-backed securities (1) 111,096 (7,160) 17,363 (1,723) 128,459 (8,883) Other mortgage-backed securities (3) 13,472 (1,153) 5,386 (706) 18,858 (1,859) Total held to maturity $ 192,642 $ (12,552) $ 40,417 $ (4,519) $ 233,059 $ (17,071) (1) (2) (3) |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
LOANS RECEIVABLE | |
Schedule of loans and financing receivable | March 31, March 31, 2023 2022 Commercial and construction Commercial business $ 232,868 $ 228,091 Commercial real estate 564,496 582,837 Land 6,437 11,556 Multi-family 55,836 60,211 Real estate construction 47,762 24,160 Total commercial and construction 907,399 906,855 Consumer Real estate one-to-four family 99,673 82,006 Other installment 1,784 1,547 Total consumer 101,457 83,553 Total loans 1,008,856 990,408 Less: Allowance for loan losses 15,309 14,523 Loans receivable, net $ 993,547 $ 975,885 |
Schedule of aggregate loans to officers and directors | Aggregate loans to officers and directors, all of which are current, consisted of the following for the periods indicated (in thousands): Year Ended March 31, 2023 2022 2021 Beginning balance $ 3,790 $ 5,308 $ 625 Originations — 32 8,174 Principal repayments (943) (1,550) (3,491) Ending balance $ 2,847 $ 3,790 $ 5,308 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
ALLOWANCE FOR LOAN LOSSES | |
Schedule of reconciliation of the allowance for loan losses | The following tables present a reconciliation of the allowance for loan losses for the periods indicated (in thousands): Commercial Commercial Multi- Real Estate March 31, 2023 Business Real Estate Land Family Construction Consumer Unallocated Total Beginning balance $ 2,422 $ 9,037 $ 168 $ 845 $ 393 $ 943 $ 715 $ 14,523 Provision for (recapture of) loan losses 701 (143) (75) (47) 371 148 (205) 750 Charge-offs — — — — — (17) — (17) Recoveries — — — — — 53 — 53 Ending balance $ 3,123 $ 8,894 $ 93 $ 798 $ 764 $ 1,127 $ 510 $ 15,309 March 31, 2022 Beginning balance $ 2,416 $ 14,089 $ 233 $ 638 $ 294 $ 852 $ 656 $ 19,178 Provision for (recapture of) loan losses 75 (5,052) (65) 207 99 52 59 (4,625) Charge-offs (69) — — — — (17) — (86) Recoveries — — — — — 56 — 56 Ending balance $ 2,422 $ 9,037 $ 168 $ 845 $ 393 $ 943 $ 715 $ 14,523 March 31, 2021 Beginning balance $ 2,008 $ 6,421 $ 230 $ 854 $ 1,149 $ 1,363 $ 599 $ 12,624 Provision for (recapture of) loan losses 398 7,336 3 (216) (855) (423) 57 6,300 Charge-offs — — — — — (124) — (124) Recoveries 10 332 — — — 36 — 378 Ending balance $ 2,416 $ 14,089 $ 233 $ 638 $ 294 $ 852 $ 656 $ 19,178 |
Schedule of impaired financing receivables | The following tables present an analysis of loans receivable and the allowance for loan losses, based on impairment methodology, at the dates indicated (in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Collectively Individually Collectively Evaluated Evaluated Evaluated Evaluated for for for for March 31, 2023 Impairment Impairment Total Impairment Impairment Total Commercial business $ — $ 3,123 $ 3,123 $ 79 $ 232,789 $ 232,868 Commercial real estate — 8,894 8,894 100 564,396 564,496 Land — 93 93 — 6,437 6,437 Multi-family — 798 798 — 55,836 55,836 Real estate construction — 764 764 — 47,762 47,762 Consumer 6 1,121 1,127 450 101,007 101,457 Unallocated — 510 510 — — — Total $ 6 $ 15,303 $ 15,309 $ 629 $ 1,008,227 $ 1,008,856 March 31, 2022 Commercial business $ — $ 2,422 $ 2,422 $ 100 $ 227,991 $ 228,091 Commercial real estate — 9,037 9,037 122 582,715 582,837 Land — 168 168 — 11,556 11,556 Multi-family — 845 845 — 60,211 60,211 Real estate construction — 393 393 — 24,160 24,160 Consumer 8 935 943 495 83,058 83,553 Unallocated — 715 715 — — — Total $ 8 $ 14,515 $ 14,523 $ 717 $ 989,691 $ 990,408 |
Schedule of changes in the allowance for unfunded loan commitments | Changes in the allowance for unfunded loan commitments were as follows for the years indicated (in thousands): Year Ended March 31, 2023 2022 2021 Beginning balance $ 424 $ 509 $ 474 Net change in allowance for unfunded loan commitments (17) (85) 35 Ending balance $ 407 $ 424 $ 509 |
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 March 31, 2023 Past Due Past Due Non-accrual accrual Current Receivable Commercial business $ 1,967 $ 1,569 $ 97 $ 3,633 $ 229,235 $ 232,868 Commercial real estate — — 100 100 564,396 564,496 Land — — — — 6,437 6,437 Multi-family — — — — 55,836 55,836 Real estate construction — — — — 47,762 47,762 Consumer 11 — 86 97 101,360 101,457 Total $ 1,978 $ 1,569 $ 283 $ 3,830 $ 1,005,026 $ 1,008,856 March 31, 2022 Commercial business $ 7,753 $ 21,808 $ 118 $ 29,679 $ 198,412 $ 228,091 Commercial real estate — — 122 122 582,715 582,837 Land — — — — 11,556 11,556 Multi-family — — — — 60,211 60,211 Real estate construction 291 — — 291 23,869 24,160 Consumer 9 — 51 60 83,493 83,553 Total $ 8,053 $ 21,808 $ 291 $ 30,152 $ 960,256 $ 990,408 |
Schedule of credit quality indicators | The following tables present an analysis of loans by credit quality indicators at the dates indicated (in thousands): Total Special Loans March 31, 2023 Pass Mention Substandard Doubtful Loss Receivable Commercial business $ 231,384 $ 1,367 $ 117 $ — $ — $ 232,868 Commercial real estate 544,426 17,626 2,444 — — 564,496 Land 6,437 — — — — 6,437 Multi-family 55,694 142 — — — 55,836 Real estate construction 47,762 — — — — 47,762 Consumer 101,371 — 86 — — 101,457 Total $ 987,074 $ 19,135 $ 2,647 $ — $ — $ 1,008,856 March 31, 2022 Commercial business $ 227,435 $ 511 $ 145 $ — $ — $ 228,091 Commercial real estate 569,417 7,211 6,209 — — 582,837 Land 11,556 — — — — 11,556 Multi-family 60,138 73 — — — 60,211 Real estate construction 24,160 — — — — 24,160 Consumer 83,502 — 51 — — 83,553 Total $ 976,208 $ 7,795 $ 6,405 $ — $ — $ 990,408 |
Schedule of total and average recorded investment in impaired loans | Recorded Recorded Investment Investment with with Related No Specific Specific Total Unpaid Specific Valuation Valuation Recorded Principal Valuation March 31, 2023 Allowance Allowance Investment Balance Allowance Commercial business $ 79 $ — $ 79 $ 127 $ — Commercial real estate 100 — 100 162 — Consumer 355 95 450 442 6 Total $ 534 $ 95 $ 629 $ 731 $ 6 March 31, 2022 Commercial business $ 100 $ — $ 100 $ 143 $ — Commercial real estate 122 — 122 178 — Consumer 259 236 495 603 8 Total $ 481 $ 236 $ 717 $ 924 $ 8 Year ended Year ended Year ended March 31, 2023 March 31, 2022 March 31, 2021 Interest Interest Interest Recognized Recognized Recognized Average on Average on Average on Recorded Impaired Recorded Impaired Recorded Impaired Investment Loans Investment Loans Investment Loans Commercial business $ 90 $ — $ 110 $ — $ 130 $ — Commercial real estate 111 — 660 16 2,008 61 Land — — — — 713 40 Multi-family — — — — 1,313 77 Consumer 475 24 514 24 494 29 Total $ 676 $ 24 $ 1,284 $ 40 $ 4,658 $ 207 |
Schedule of TDRs by interest accrual status | The following table presents TDRs by interest accrual status at the dates indicated (in thousands): March 31, 2023 March 31, 2022 Accrual Non-accrual Total Accrual Non-accrual Total Commercial business $ — $ 79 $ 79 $ — $ 100 $ 100 Commercial real estate — 100 100 — 122 122 Land — — — — — — Multi-family — — — — — — Consumer 450 — 450 495 — 495 Total $ 450 $ 179 $ 629 $ 495 $ 222 $ 717 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | Premises and equipment consisted of the following at the dates indicated (in thousands): March 31, 2023 2022 Land $ 5,715 $ 4,714 Buildings and improvements 18,494 17,030 Leasehold improvements 3,965 3,998 Furniture and equipment 11,578 10,765 Construction in progress 33 — Total 39,785 36,507 Less accumulated depreciation and amortization (19,666) (19,341) Premises and equipment, net $ 20,119 $ 17,166 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
DEPOSITS | |
Schedule of deposit accounts | Deposit accounts consisted of the following at the dates indicated (in thousands): March 31, March 31, Account Type 2023 2022 Non-interest-bearing $ 404,937 $ 494,831 Interest-bearing checking 254,522 287,861 Money market 221,778 299,738 Savings accounts 255,147 340,076 Certificates of deposit 128,833 111,372 Total $ 1,265,217 $ 1,533,878 |
Schedule of maturities of certificates of deposit for future years | Scheduled maturities of certificates of deposit for future years ending March 31 are as follows (in thousands): Year Ending March 31, : 2024 $ 84,603 2025 37,569 2026 4,143 2027 1,193 2028 531 Thereafter 794 Total $ 128,833 |
Schedule of interest expense by deposit type | Interest expense by deposit type was as follows for the years indicated (in thousands): Year Ended March 31, 2023 2022 2021 Interest-bearing checking $ 89 $ 87 $ 85 Money market 415 150 153 Savings accounts 219 247 418 Certificates of deposit 779 940 1,888 Total $ 1,502 $ 1,424 $ 2,544 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
FEDERAL HOME LOAN BANK ADVANCES | |
Schedule of FHLB advances | FHLB advances are summarized at the dates indicated (dollars in thousands): March 31, 2023 March 31, 2022 FHLB advances $ 123,754 $ — Weighted average interest rate on FHLB advances (1) 4.88 % 0.31 % (1) |
JUNIOR SUBORDINATED DEBENTURES
JUNIOR SUBORDINATED DEBENTURES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (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 % 6.23 % 3/2036 Riverview Bancorp Statutory Trust II 06/2007 15,464 Variable (2) 7.03 % 6.22 % 9/2037 Merchants Bancorp Statutory Trust I (4) 06/2003 5,155 Variable (3) 4.16 % 8.23 % 6/2033 27,836 Fair value adjustment (4) (918) Total Debentures $ 26,918 (1) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 1.36% . (2) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 1.35% . (3) The trust preferred securities reprice quarterly based on the three-month LIBOR plus 3.10 % . (4) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
INCOME TAXES | |
Schedule of provision for income taxes | Provision for income taxes consisted of the following for the periods indicated (in thousands): Year Ended March 31 2023 2022 2021 Current $ 5,754 $ 5,446 $ 4,410 Deferred (144) 1,010 (1,429) Total $ 5,610 $ 6,456 $ 2,981 |
Schedule of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at the dates indicated (in thousands): March 31, March 31, 2023 2022 Deferred tax assets: Deferred compensation $ 78 $ 57 Allowance for loan losses 3,772 3,588 Accrued expenses 160 170 Accumulated depreciation and amortization 918 881 Deferred gain on sale 34 52 Deferred income 57 107 Purchase accounting 46 74 Net unrealized loss on investment securities available for sale 5,782 3,141 Operating lease liabilities 1,695 1,993 Other 429 420 Total deferred tax assets 12,971 10,483 Deferred tax liabilities: FHLB stock dividends (38) (38) Prepaid expenses (241) (171) Operating lease ROU assets (1,609) (1,898) Loan fees/costs (797) (875) Total deferred tax liabilities (2,685) (2,982) Deferred tax assets, net $ 10,286 $ 7,501 |
Schedule of reconciliation of effective income tax rate with the federal statutory tax rate | Year Ended March 31, 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local income tax rate 3.0 3.0 3.0 Employee Stock Ownership Plan ("ESOP") market value adjustment (0.1) (0.1) (0.1) BOLI (0.8) (0.7) (1.5) Other, net 0.6 (0.4) (0.3) Effective federal income tax rate 23.7 % 22.8 % 22.1 % |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of activity related to options under all plans | Year Ended March 31, 2023 2022 2021 Weighted Weighted Weighted Average Average Average Number of Exercise Number of Exercise Number of Exercise Shares Price Shares Price Shares Price Balance, beginning of period 17,332 $ 2.78 23,332 $ 2.78 43,332 $ 2.69 Options exercised (1,511) 2.78 (6,000) 2.78 (20,000) 2.58 Options expired (1,511) 2.78 — — — — Balance, end of period 14,310 $ 2.78 17,332 $ 2.78 23,332 $ 2.78 |
Schedule of additional information regarding stock options outstanding | Options Outstanding Options Exercisable Weighted Avg Weighted Weighted Remaining Average Average Range of Contractual Exercise Exercise Exercise Price Life (years) Number Price Number Price $1.00 - $3.00 0.29 14,310 $ 2.78 14,310 $ 2.78 |
Schedule of information of stock options outstanding | The following table presents information on stock options outstanding, less estimated forfeitures, as of March 31, 2023 and 2022: March 31, 2023 March 31, 2022 Stock options fully vested and expected to vest: Number 14,310 17,332 Weighted average exercise price $ 2.78 $ 2.78 Aggregate intrinsic value (1) $ 37,000 $ 83,000 Weighted average contractual term of options (years) 0.29 1.29 Stock options fully vested and currently exercisable: Number 14,310 17,332 Weighted average exercise price $ 2.78 $ 2.78 Aggregate intrinsic value (1) $ 37,000 $ 83,000 Weighted average contractual term of options (years) 0.29 1.29 (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 Year Ended March 31, 2023 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 26,855 $ 6.02 121,492 $ 5.70 148,347 $ 5.76 Granted 15,571 6.30 56,125 6.30 71,696 6.30 Forfeited — — (2,977) 7.56 (2,977) 7.56 Vested (12,449) 6.07 (41,995) 5.26 (54,444) 5.45 Balance, end of period 29,977 $ 6.14 132,645 $ 6.05 162,622 $ 6.07 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 Year Ended March 31, 2022 Shares Fair Value Shares Fair Value Shares Fair Value Balance, beginning of period 45,616 $ 6.57 96,772 $ 5.27 142,388 $ 5.69 Granted 15,274 7.08 54,011 7.06 69,285 7.06 Forfeited (4,417) 5.82 (16,559) 5.55 (20,976) 5.61 Vested (29,618) 7.43 (12,732) 8.35 (42,350) 7.71 Balance, end of period 26,855 $ 6.02 121,492 $ 5.70 148,347 $ 5.76 |
SHAREHOLDERS' EQUITY AND REGU_2
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS. | |
Schedule of actual and required minimum capital amounts and ratios | "Well Capitalized" For Capital Under Prompt Actual Adequacy Purposes Corrective Action March 31, 2023 Amount Ratio Amount Ratio Amount Ratio Total Capital: (To Risk-Weighted Assets) $ 180,001 16.94 % $ 85,013 8.0 % $ 106,266 10.0 % Tier 1 Capital: (To Risk-Weighted Assets) 166,688 15.69 63,760 6.0 85,013 8.0 Common equity tier 1 Capital: (To Risk-Weighted Assets) 166,688 15.69 47,820 4.5 69,073 6.5 Tier 1 Capital (Leverage): (To Average Tangible Assets) 166,688 10.47 63,679 4.0 79,599 5.0 "Well Capitalized" For Capital Under Prompt Actual Adequacy Purposes Corrective Action March 31, 2022 Amount Ratio Amount Ratio Amount Ratio Total Capital: (To Risk-Weighted Assets) $ 168,486 16.38 % $ 82,305 8.0 % $ 102,881 10.0 % Tier 1 Capital: (To Risk-Weighted Assets) 155,601 15.12 61,728 6.0 82,305 8.0 Common equity tier 1 Capital: (To Risk-Weighted Assets) 155,601 15.12 46,296 4.5 66,872 6.5 Tier 1 Capital (Leverage): (To Average Tangible Assets) 155,601 9.19 67,763 4.0 84,704 5.0 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Year Ended March 31, (Dollars and share data in thousands, except per share data) 2023 2022 2021 Basic EPS computation: Numerator-net income $ 18,069 $ 21,820 $ 10,472 Denominator-weighted average common shares outstanding 21,638 22,213 22,296 Basic EPS $ 0.84 $ 0.98 $ 0.47 Diluted EPS computation: Numerator-net income $ 18,069 $ 21,820 $ 10,472 Denominator-weighted average common shares outstanding 21,638 22,213 22,296 Effect of dilutive stock options 8 12 17 Weighted average common shares and common stock equivalents 21,646 22,225 22,313 Diluted EPS $ 0.83 $ 0.98 $ 0.47 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 40,261 $ — $ 40,261 $ — Agency securities 85,907 — 85,907 — Real estate mortgage investment conduits 28,877 — 28,877 — Residential mortgage-backed securities 15,471 — 15,471 — Other mortgage-backed securities 40,983 — 40,983 — Total assets measured at fair value on a recurring basis $ 211,499 $ — $ 211,499 $ — Total Estimated Estimated Fair Value Measurements Using March 31, 2022 Fair Value Level 1 Level 2 Level 3 Investment securities available for sale: Municipal securities $ 39,604 $ — $ 39,604 $ — Agency securities 40,705 — 40,705 — Real estate mortgage investment conduits 32,717 — 32,717 — Residential mortgage-backed securities 16,945 — 16,945 — Other mortgage-backed securities 35,811 — 35,811 — Total assets measured at fair value on a recurring basis $ 165,782 $ — $ 165,782 $ — |
Schedule of assets that are measured at estimated fair value on a nonrecurring basis | The following tables present assets that are measured at estimated fair value on a nonrecurring basis at the dates indicated (in thousands): Total Estimated Fair Value Estimated Measurements Using March 31, 2023 Fair Value Level 1 Level 2 Level 3 Impaired loans $ 89 $ — $ — $ 89 March 31, 2022 Impaired loans $ 228 $ — $ — $ 228 |
Schedule of quantitative information about Level 3 inputs for financial instruments measured at fair value on a nonrecurring basis | Valuation Significant Unobservable Technique Inputs Range Impaired loans Appraised Adjustment for market conditions N/A (1) Discounted cash flows Discount rate 5.375 % - 8.000% (1) There were no adjustments to appraised values of impaired loans as of March 31, 2023 and 2022. |
Schedule of carrying amount and estimated fair value of financial instruments | The carrying amounts and estimated fair values of financial instruments are as follows at the dates indicated (in thousands): Carrying Estimated March 31, 2023 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 22,044 $ 22,044 $ — $ — $ 22,044 Certificates of deposit held for investment 249 — 248 — 248 Investment securities available for sale 211,499 — 211,499 — 211,499 Investment securities held to maturity 243,843 — 210,214 — 210,214 Loans receivable, net 993,547 — — 931,784 931,784 FHLB stock 6,867 — 6,867 — 6,867 Liabilities: Certificates of deposit 128,833 — 126,072 — 126,072 FHLB advances 123,754 — 123,679 — 123,679 Junior subordinated debentures 26,918 — — 17,698 17,698 Carrying Estimated March 31, 2022 Amount Level 1 Level 2 Level 3 Fair Value Assets: Cash and cash equivalents $ 241,424 $ 241,424 $ — $ — $ 241,424 Certificates of deposit held for investment 249 — 253 — 253 Investment securities available for sale 165,782 — 165,782 — 165,782 Investment securities held to maturity 253,100 — 236,029 — 236,029 Loans receivable, net 975,885 — — 962,893 962,893 FHLB stock 2,019 — 2,019 — 2,019 Liabilities: Certificates of deposit 111,372 — 109,860 — 109,860 Junior subordinated debentures 26,833 — — 16,046 16,046 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 disaggregated by type of service (in thousands): Year Ended March 31, 2023 2022 2021 Asset management fees $ 4,734 $ 4,107 $ 3,646 Debit card and ATM fees 3,341 3,499 3,103 Deposit related fees 1,737 1,634 1,514 Loan related fees 539 1,247 1,229 BOLI (1) 821 800 813 Net gains on sales of loans held for sale (1) — — 28 FHLMC loan servicing fees (1) 66 85 94 BOLI death benefit in excess of cash surrender value (1) — 500 — Other, net 956 872 663 Total non-interest income, net $ 12,194 $ 12,744 $ 11,090 (1) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of significant off-balance sheet commitments | Significant off-balance sheet commitments are listed below at the dates indicated (in thousands): Contract or Notional Amount March 31, March 31, 2023 2022 Commitments to extend credit: Adjustable-rate $ 12,489 $ 17,125 Fixed-rate 18 2,895 Standby letters of credit 1,600 1,780 Undisbursed loan funds and unused lines of credit 130,269 137,460 Total $ 144,376 $ 159,260 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
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 sheet at the dates indicated (dollars in thousands): March 31, March 31, Classification in the Leases 2023 2022 consolidated balance sheets Finance lease ROU assets $ 1,278 $ 1,355 Financing lease ROU assets Finance lease liability $ 2,229 $ 2,283 Finance lease liability Finance lease remaining lease term 16.68 years 17.68 years Finance lease discount rate 7.16 % 7.16 % Operating lease ROU assets $ 6,705 $ 7,907 Prepaid expenses and other assets Operating lease liabilities $ 7,064 $ 8,306 Accrued expenses and other liabilities Operating lease weighted-average remaining lease term 6.15 years 7.02 years Operating lease weighted-average discount rate 1.78 % 1.81 % |
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): Year ended Year ended Year ended Lease Costs March 31, 2023 March 31, 2022 March 31, 2021 Finance lease amortization of ROU asset $ 77 $ 77 $ 77 Finance lease interest on lease liability 162 165 168 Operating lease costs 1,133 1,266 1,312 Variable lease costs 209 209 209 Total lease cost (1) $ 1,581 $ 1,717 $ 1,766 (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 March 31, 2023 (in thousands): Year Ending March 31: Operating Finance Leases Lease 2024 $ 1,370 $ 219 2025 1,375 222 2026 1,125 226 2027 1,116 230 2028 899 232 Thereafter 1,632 2,712 Total minimum lease payments 7,517 3,841 Less: amount of lease payment representing interest (453) (1,612) Lease liabilities $ 7,064 $ 2,229 |
RIVERVIEW BANCORP, INC. (PARE_2
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | |
Schedule of condensed balance sheet | BALANCE SHEETS AS OF MARCH 31, 2023 AND 2022 (In thousands) 2023 2022 ASSETS Cash and cash equivalents $ 5,480 $ 10,867 Investment in the Bank 175,833 173,223 Other assets 2,342 1,321 TOTAL ASSETS $ 183,655 $ 185,411 LIABILITIES AND SHAREHOLDERS’ EQUITY Accrued expenses and other liabilities $ 224 $ 112 Dividend payable 1,274 1,217 Borrowings 26,918 26,833 Shareholders' equity 155,239 157,249 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 183,655 $ 185,411 |
Schedule of condensed income statement | STATEMENTS OF INCOME FOR THE YEARS ENDED MARCH 31, 2023, 2022 AND 2021 (In thousands) 2023 2022 2021 INCOME: Interest on investment securities and other short-term investments $ 129 $ 16 $ 17 Total income 129 16 17 EXPENSE: Management service fees paid to the Bank 143 143 143 Other expenses 1,424 670 731 Total expense 1,567 813 874 LOSS BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF THE BANK (1,438) (797) (857) BENEFIT FOR INCOME TAXES (303) (167) (180) LOSS OF PARENT COMPANY (1,135) (630) (677) EQUITY IN UNDISTRIBUTED INCOME OF THE BANK 19,204 22,450 11,149 NET INCOME $ 18,069 $ 21,820 $ 10,472 |
Schedule of condensed cash flow statement | STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2023, 2022 AND 2021 (In thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 18,069 $ 21,820 $ 10,472 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed income of the Bank (19,204) (22,450) (11,149) Amortization expense 85 85 86 Provision (benefit) for deferred income taxes (1) 2 — Stock-based compensation expense 390 319 396 Changes in assets and liabilities: Other assets (1,019) 131 224 Accrued expenses and other liabilities 112 48 (417) Net cash used in operating activities (1,568) (45) (388) CASH FLOWS FROM INVESTING ACTIVITIES: Dividend from the Bank 8,000 7,500 6,000 Net cash provided by investing activities 8,000 7,500 6,000 CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (5,117) (4,670) (4,478) Proceeds from exercise of stock options 4 16 50 Repurchase of common stock (6,706) (1,940) (1,447) Net cash used in financing activities (11,819) (6,594) (5,875) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (5,387) 861 (263) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 10,867 10,006 10,269 CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,480 $ 10,867 $ 10,006 |
Schedule of quarterly financial information | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): (Dollars in thousands, except per share data) Three Months Ended Fiscal 2023: March 31 December 31 September 30 June 30 Interest and dividend income $ 13,941 $ 14,443 $ 14,088 $ 13,194 Interest expense 2,127 743 657 533 Net interest income 11,814 13,700 13,431 12,661 Provision for loan losses 750 — — — Non-interest income, net 2,971 2,963 3,134 3,126 Non-interest expense 9,950 9,848 9,804 9,769 Income before income taxes 4,085 6,815 6,761 6,018 Provision for income taxes 1,102 1,575 1,567 1,366 Net income $ 2,983 $ 5,240 $ 5,194 $ 4,652 Basic earnings per common share (1) $ 0.14 $ 0.24 $ 0.24 $ 0.21 Diluted earnings per common share (1) $ 0.14 $ 0.24 $ 0.24 $ 0.21 Fiscal 2022: Interest and dividend income $ 12,389 $ 12,551 $ 12,965 $ 11,920 Interest expense 483 492 589 636 Net interest income 11,906 12,059 12,376 11,284 Recapture of loan losses (650) (1,275) (1,100) (1,600) Non-interest income, net 2,966 3,116 3,074 3,588 Non-interest expense 10,115 9,279 8,187 9,137 Income before income taxes 5,407 7,171 8,363 7,335 Provision for income taxes 1,282 1,661 1,933 1,580 Net income $ 4,125 $ 5,510 $ 6,430 $ 5,755 Basic earnings per common share (1) $ 0.19 $ 0.25 $ 0.29 $ 0.26 Diluted earnings per common share (1) $ 0.19 $ 0.25 $ 0.29 $ 0.26 (1) Quarterly earnings per common share may vary from annual earnings per common share due to rounding . |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Mar. 31, 2023 USD ($) segment item | Mar. 31, 2022 USD ($) | |
. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of branches in rural and suburban communities | item | 17 | |
Number of operating segments | segment | 2 | |
PCI loans | $ 0 | $ 0 |
Minimum percentage of monthly payments charged off for consumer installment loan | 75% | |
REO | $ 0 | $ 0 |
Mortgage loans secured by residential real estate | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 21, 2020 | Oct. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2023 | Jul. 31, 2022 | Mar. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares additional issued | 500 | |||||
Additional Shares exercised | 500 | |||||
Assets Held-in-trust | $ 890,600,000,000 | $ 1,300,000,000 | ||||
Operating lease right-of-use assets | 6,705,000 | 7,907,000 | ||||
Operating lease liabilities | $ 7,064,000 | 8,306,000 | ||||
Loans and Leases Receivable, Gross, Total | 990,408,000 | |||||
Core Deposit Intangibles | Merchants Bancorp | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated amortized period of Core Deposit Intangibles | 10 years | |||||
Core Deposit Intangibles, gross | $ 1,400,000 | 1,400,000 | ||||
Accumulated amortization | 984,000 | $ 868,000 | ||||
Estimated amortization expense of Core Deposit Intangibles for fiscal years ended March 31, 2024 | 108,000 | |||||
Estimated amortization expense of Core Deposit Intangibles for fiscal years ended March 31, 2025 | 100,000 | |||||
Estimated amortization expense of Core Deposit Intangibles for fiscal years ended March 31, 2026 | 93,000 | |||||
Estimated amortization expense of Core Deposit Intangibles for fiscal years ended March 31, 2027 | $ 78,000 | |||||
Building and improvements | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 45 years | |||||
Furniture and equipment | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Furniture and equipment | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 20 years | |||||
Leasehold improvements | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 15 years | |||||
Leasehold improvements | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 25 years | |||||
Riverview Bank | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Non controlling Interest | $ 234,000 | |||||
Trust Company | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of shares issued | 1,500 | |||||
Number of stock options exercised | 1,500 | |||||
Trust Company | Riverview Bank | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Ownership percentage | 100% | 97.30% |
RESTRICTED ASSETS (Details)
RESTRICTED ASSETS (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
RESTRICTED ASSETS. | ||
Minimum reserve balance | $ 0 | $ 0 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
INVESTMENT SECURITIES | ||
Amortized Cost | $ 235,591 | $ 178,874 |
Gross Unrealized Gains | 43 | 57 |
Gross Unrealized Losses | (24,135) | (13,149) |
Estimated Fair Value | 211,499 | 165,782 |
Municipal securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 47,857 | 44,104 |
Gross Unrealized Gains | 16 | 14 |
Gross Unrealized Losses | (7,612) | (4,514) |
Estimated Fair Value | 40,261 | 39,604 |
Agency securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 91,858 | 43,848 |
Gross Unrealized Gains | 23 | 1 |
Gross Unrealized Losses | (5,974) | (3,144) |
Estimated Fair Value | 85,907 | 40,705 |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 34,247 | 35,563 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (5,370) | (2,847) |
Estimated Fair Value | 28,877 | 32,717 |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 16,512 | 17,368 |
Gross Unrealized Gains | 13 | |
Gross Unrealized Losses | (1,041) | (436) |
Estimated Fair Value | 15,471 | 16,945 |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 45,117 | 37,991 |
Gross Unrealized Gains | 4 | 28 |
Gross Unrealized Losses | (4,138) | (2,208) |
Estimated Fair Value | $ 40,983 | $ 35,811 |
INVESTMENT SECURITIES - Held to
INVESTMENT SECURITIES - Held to maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
INVESTMENT SECURITIES | ||
Amortized Cost | $ 243,843 | $ 253,100 |
Gross Unrealized Losses | (33,629) | (17,071) |
Estimated Fair Value | 210,214 | 236,029 |
Municipal securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 10,344 | 10,368 |
Gross Unrealized Losses | (2,859) | (1,422) |
Estimated Fair Value | 7,485 | 8,946 |
Agency securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 53,941 | 45,277 |
Gross Unrealized Losses | (5,091) | (2,450) |
Estimated Fair Value | 48,850 | 42,827 |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 35,186 | 39,394 |
Gross Unrealized Losses | (4,769) | (2,457) |
Estimated Fair Value | 30,417 | 36,937 |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 123,773 | 137,343 |
Gross Unrealized Losses | (17,542) | (8,883) |
Estimated Fair Value | 106,231 | 128,460 |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Amortized Cost | 20,599 | 20,718 |
Gross Unrealized Losses | (3,368) | (1,859) |
Estimated Fair Value | $ 17,231 | $ 18,859 |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual maturities, Available for sale (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Available for Sale, Amortized Cost | |
Due in one year or less | $ 12,442 |
Due after one year through five years | 82,028 |
Due after five years through ten years | 54,035 |
Due after ten years | 87,086 |
Total, Amortized Cost | 235,591 |
Available for Sale, Estimated Fair Value | |
Due in one year or less | 12,261 |
Due after one year through five years | 78,204 |
Due after five years through ten years | 47,214 |
Due after ten years | 73,820 |
Total, Estimated Fair Value | $ 211,499 |
INVESTMENT SECURITIES - Contr_2
INVESTMENT SECURITIES - Contractual maturities, Held to maturity (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Held to Maturity, Amortized Cost | |
Due in one year or less | $ 4 |
Due after one year through five years | 42,211 |
Due after five years through ten years | 29,695 |
Due after ten years | 171,933 |
Total, Amortized Cost | 243,843 |
Held to Maturity, Estimated Fair Value | |
Due in one year or less | 4 |
Due after one year through five years | 39,339 |
Due after five years through ten years | 24,965 |
Due after ten years | 145,906 |
Total, Estimated Fair Value | $ 210,214 |
INVESTMENT SECURITIES - Fair va
INVESTMENT SECURITIES - Fair value of impaired investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | $ 69,746 | $ 120,499 |
Less than 12 months, Unrealized Losses | (1,500) | (9,798) |
12 months or longer, Estimated Fair Value | 134,268 | 35,740 |
12 months or longer, Unrealized Losses | (22,635) | (3,351) |
Total, Estimated Fair Value | 204,014 | 156,239 |
Total, Unrealized Losses | (24,135) | (13,149) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 10,995 | 192,642 |
Less than 12 months, unrealized losses | (431) | (12,552) |
12 months or longer, Estimated Fair Value | 199,219 | 40,417 |
12 months or longer, Unrealized Losses | (33,198) | (4,519) |
Total Estimated fair value | 210,214 | 233,059 |
Total, Unrealized Losses | (33,629) | (17,071) |
Municipal securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 6,277 | 32,767 |
Less than 12 months, Unrealized Losses | (133) | (4,293) |
12 months or longer, Estimated Fair Value | 32,797 | 3,282 |
12 months or longer, Unrealized Losses | (7,479) | (221) |
Total, Estimated Fair Value | 39,074 | 36,049 |
Total, Unrealized Losses | (7,612) | (4,514) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 5,911 | |
Less than 12 months, unrealized losses | (816) | |
12 months or longer, Estimated Fair Value | 7,485 | 3,036 |
12 months or longer, Unrealized Losses | (2,859) | (606) |
Total Estimated fair value | 7,485 | 8,947 |
Total, Unrealized Losses | (2,859) | (1,422) |
Agency securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 43,451 | 22,288 |
Less than 12 months, Unrealized Losses | (747) | (1,565) |
12 months or longer, Estimated Fair Value | 36,646 | 16,414 |
12 months or longer, Unrealized Losses | (5,227) | (1,579) |
Total, Estimated Fair Value | 80,097 | 38,702 |
Total, Unrealized Losses | (5,974) | (3,144) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 8,413 | 35,930 |
Less than 12 months, unrealized losses | (240) | (1,708) |
12 months or longer, Estimated Fair Value | 40,437 | 6,897 |
12 months or longer, Unrealized Losses | (4,851) | (742) |
Total Estimated fair value | 48,850 | 42,827 |
Total, Unrealized Losses | (5,091) | (2,450) |
Real estate mortgage investment conduits | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 2,693 | 17,334 |
Less than 12 months, Unrealized Losses | (97) | (1,310) |
12 months or longer, Estimated Fair Value | 26,184 | 15,275 |
12 months or longer, Unrealized Losses | (5,273) | (1,537) |
Total, Estimated Fair Value | 28,877 | 32,609 |
Total, Unrealized Losses | (5,370) | (2,847) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 2,580 | 26,233 |
Less than 12 months, unrealized losses | (191) | (1,715) |
12 months or longer, Estimated Fair Value | 27,837 | 7,735 |
12 months or longer, Unrealized Losses | (4,578) | (742) |
Total Estimated fair value | 30,417 | 33,968 |
Total, Unrealized Losses | (4,769) | (2,457) |
Residential mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 3,449 | 15,702 |
Less than 12 months, Unrealized Losses | (147) | (436) |
12 months or longer, Estimated Fair Value | 12,022 | |
12 months or longer, Unrealized Losses | (894) | |
Total, Estimated Fair Value | 15,471 | 15,702 |
Total, Unrealized Losses | (1,041) | (436) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 2 | 111,096 |
Less than 12 months, unrealized losses | (7,160) | |
12 months or longer, Estimated Fair Value | 106,229 | 17,363 |
12 months or longer, Unrealized Losses | (17,542) | (1,723) |
Total Estimated fair value | 106,231 | 128,459 |
Total, Unrealized Losses | (17,542) | (8,883) |
Other mortgage-backed securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Estimated Fair Value | 13,876 | 32,408 |
Less than 12 months, Unrealized Losses | (376) | (2,194) |
12 months or longer, Estimated Fair Value | 26,619 | 769 |
12 months or longer, Unrealized Losses | (3,762) | (14) |
Total, Estimated Fair Value | 40,495 | 33,177 |
Total, Unrealized Losses | (4,138) | (2,208) |
Debt Securities, Held to maturity | ||
Less than 12 months, Estimated fair value | 13,472 | |
Less than 12 months, unrealized losses | (1,153) | |
12 months or longer, Estimated Fair Value | 17,231 | 5,386 |
12 months or longer, Unrealized Losses | (3,368) | (706) |
Total Estimated fair value | 17,231 | 18,858 |
Total, Unrealized Losses | $ (3,368) | $ (1,859) |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
INVESTMENT SECURITIES | ||||
Available for sale securities transferred to held to maturity | $ 85,800,000 | |||
Unrealized after tax gain | 18,000 | |||
Gains (losses) recognized at time of transfer | $ 0 | |||
Proceeds from the sale of investment securities | $ 0 | $ 0 | $ 0 | |
Gross realized gains on sales of investment securities | 0 | 0 | $ 0 | |
Available for sale with amortized cost | 235,591,000 | 178,874,000 | ||
Available for sale, estimated fair value | 211,499,000 | 165,782,000 | ||
Debt Securities, Held-to-maturity, Fair Value | 210,214,000 | 236,029,000 | ||
Asset Pledged as Collateral. | ||||
INVESTMENT SECURITIES | ||||
Available for sale with amortized cost | 3,200,000 | 1,300,000 | ||
Available for sale, estimated fair value | 2,900,000 | 1,200,000 | ||
Held to maturity at amortized cost | 12,300,000 | 13,700,000 | ||
Debt Securities, Held-to-maturity, Fair Value | $ 10,400,000 | $ 12,600,000 |
LOANS RECEIVABLE - Loans receiv
LOANS RECEIVABLE - Loans receivable, excluding loans held for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
LOANS RECEIVABLE | ||||
Total loans | $ 1,008,856 | $ 990,408 | ||
Less: Allowance for loan losses | 15,309 | 14,523 | ||
Loans receivable, net | 993,547 | |||
Total loans | 990,408 | |||
Less: Allowance for loan losses | 14,523 | $ 19,178 | $ 12,624 | |
Loans receivable, net | 975,885 | |||
Commercial Business | ||||
LOANS RECEIVABLE | ||||
Total loans | 232,868 | |||
Total loans | 228,091 | |||
Commercial Real Estate | ||||
LOANS RECEIVABLE | ||||
Total loans | 564,496 | |||
Total loans | 582,837 | |||
Land | ||||
LOANS RECEIVABLE | ||||
Total loans | 6,437 | |||
Total loans | 11,556 | |||
Multi-Family | ||||
LOANS RECEIVABLE | ||||
Total loans | 55,836 | |||
Total loans | 60,211 | |||
Real Estate Construction | ||||
LOANS RECEIVABLE | ||||
Total loans | 47,762 | |||
Total loans | 24,160 | |||
Commercial Real Estate Portfolio Segment | ||||
LOANS RECEIVABLE | ||||
Total loans | 907,399 | |||
Total loans | 906,855 | |||
Commercial Real Estate Portfolio Segment | Commercial Business | ||||
LOANS RECEIVABLE | ||||
Total loans | 232,868 | 228,091 | ||
Less: Allowance for loan losses | 3,123 | 2,422 | ||
Total loans | 228,091 | |||
Less: Allowance for loan losses | 2,422 | 2,416 | 2,008 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||||
LOANS RECEIVABLE | ||||
Total loans | 564,496 | 582,837 | ||
Less: Allowance for loan losses | 8,894 | 9,037 | ||
Total loans | 582,837 | |||
Less: Allowance for loan losses | 9,037 | 14,089 | 6,421 | |
Commercial Real Estate Portfolio Segment | Land | ||||
LOANS RECEIVABLE | ||||
Total loans | 6,437 | 11,556 | ||
Less: Allowance for loan losses | 93 | 168 | ||
Total loans | 11,556 | |||
Less: Allowance for loan losses | 168 | 233 | 230 | |
Commercial Real Estate Portfolio Segment | Multi-Family | ||||
LOANS RECEIVABLE | ||||
Total loans | 55,836 | 60,211 | ||
Less: Allowance for loan losses | 798 | 845 | ||
Total loans | 60,211 | |||
Less: Allowance for loan losses | 845 | 638 | 854 | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||||
LOANS RECEIVABLE | ||||
Total loans | 47,762 | 24,160 | ||
Less: Allowance for loan losses | 764 | 393 | ||
Total loans | 24,160 | |||
Less: Allowance for loan losses | 393 | 294 | 1,149 | |
Consumer | ||||
LOANS RECEIVABLE | ||||
Total loans | 101,457 | 83,553 | ||
Less: Allowance for loan losses | 1,127 | 943 | ||
Total loans | 83,553 | |||
Less: Allowance for loan losses | 943 | $ 852 | $ 1,363 | |
Consumer | Real estate one-to-four family | ||||
LOANS RECEIVABLE | ||||
Total loans | 99,673 | |||
Total loans | 82,006 | |||
Consumer | Other installment | ||||
LOANS RECEIVABLE | ||||
Total loans | $ 1,784 | |||
Total loans | $ 1,547 |
LOANS RECEIVABLE - Additional i
LOANS RECEIVABLE - Additional information (Details) | 12 Months Ended | |
Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) item | |
LOANS RECEIVABLE | ||
Deferred loan fees | $ 4,400,000 | $ 4,500,000 |
Number of Loans to Foreign Domiciled Businesses or Foreign Countries | item | 0 | 0 |
Discount on Loans receivable | $ 1,400,000 | $ 371,000 |
Premiums On Loans Receivable. | 2,100,000 | $ 2,400,000 |
Loans pledged as collateral | $ 993,547,000 | |
Percentage of loans and extensions of credit outstanding | 15% | |
Asset Pledged as Collateral | FHLB and FRB Borrowing Arrangements | ||
LOANS RECEIVABLE | ||
Loans pledged as collateral | $ 601,500,000 | |
Raw Land Loans [Member] | Commercial Real Estate Portfolio Segment | ||
LOANS RECEIVABLE | ||
Maximum loan-to-value ratio | 65% | |
Land and Land Improvements [Member] | Commercial Real Estate Portfolio Segment | ||
LOANS RECEIVABLE | ||
Maximum loan-to-value ratio | 75% | |
Real estate one-to-four family | Consumer | ||
LOANS RECEIVABLE | ||
Maximum loan-to-value ratio | 80% | |
Real estate one-to-four family | Consumer | Minimum | ||
LOANS RECEIVABLE | ||
Terms of maturity | 15 years | |
Real estate one-to-four family | Consumer | Maximum | ||
LOANS RECEIVABLE | ||
Terms of maturity | 30 years | |
Commercial Real Estate | Commercial Real Estate Portfolio Segment | Minimum | ||
LOANS RECEIVABLE | ||
Maximum loan-to-value ratio | 65% | |
Commercial Real Estate | Commercial Real Estate Portfolio Segment | Maximum | ||
LOANS RECEIVABLE | ||
Maximum loan-to-value ratio | 80% |
LOANS RECEIVABLE - Aggregate lo
LOANS RECEIVABLE - Aggregate loans to officers and directors (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Loans to Officers and Directors | |||
Beginning balance | $ 3,790 | $ 5,308 | $ 625 |
Originations | 32 | 8,174 | |
Principal repayments | (943) | (1,550) | (3,491) |
Ending balance | $ 2,847 | $ 3,790 | $ 5,308 |
ALLOWANCE FOR LOAN LOSSES - Rec
ALLOWANCE FOR LOAN LOSSES - Reconciliation of the allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | $ 14,523 | |||||||
Provision for (recapture of) loan losses | 750 | |||||||
Charge-offs | (17) | |||||||
Recoveries | 53 | |||||||
Ending balance | $ 15,309 | $ 14,523 | 15,309 | $ 14,523 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | $ 19,178 | 14,523 | 19,178 | $ 12,624 | ||||
Provision for (recapture of) loan losses | 750 | (650) | $ (1,275) | $ (1,100) | (1,600) | (4,625) | 6,300 | |
Charge-offs | (86) | (124) | ||||||
Recoveries | 56 | 378 | ||||||
Ending balance | 14,523 | 14,523 | 19,178 | |||||
Commercial Real Estate Portfolio Segment | Commercial Business | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 2,422 | |||||||
Provision for (recapture of) loan losses | 701 | |||||||
Ending balance | 3,123 | 2,422 | 3,123 | 2,422 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 2,416 | 2,422 | 2,416 | 2,008 | ||||
Provision for (recapture of) loan losses | 75 | 398 | ||||||
Charge-offs | (69) | |||||||
Recoveries | 10 | |||||||
Ending balance | 2,422 | 2,422 | 2,416 | |||||
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 9,037 | |||||||
Provision for (recapture of) loan losses | (143) | |||||||
Ending balance | 8,894 | 9,037 | 8,894 | 9,037 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 14,089 | 9,037 | 14,089 | 6,421 | ||||
Provision for (recapture of) loan losses | (5,052) | 7,336 | ||||||
Recoveries | 332 | |||||||
Ending balance | 9,037 | 9,037 | 14,089 | |||||
Commercial Real Estate Portfolio Segment | Land | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 168 | |||||||
Provision for (recapture of) loan losses | (75) | |||||||
Ending balance | 93 | 168 | 93 | 168 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 233 | 168 | 233 | 230 | ||||
Provision for (recapture of) loan losses | (65) | 3 | ||||||
Ending balance | 168 | 168 | 233 | |||||
Commercial Real Estate Portfolio Segment | Multi-Family | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 845 | |||||||
Provision for (recapture of) loan losses | (47) | |||||||
Ending balance | 798 | 845 | 798 | 845 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 638 | 845 | 638 | 854 | ||||
Provision for (recapture of) loan losses | 207 | (216) | ||||||
Ending balance | 845 | 845 | 638 | |||||
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 393 | |||||||
Provision for (recapture of) loan losses | 371 | |||||||
Ending balance | 764 | 393 | 764 | 393 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 294 | 393 | 294 | 1,149 | ||||
Provision for (recapture of) loan losses | 99 | (855) | ||||||
Ending balance | 393 | 393 | 294 | |||||
Consumer | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 943 | |||||||
Provision for (recapture of) loan losses | 148 | |||||||
Charge-offs | (17) | |||||||
Recoveries | 53 | |||||||
Ending balance | 1,127 | 943 | 1,127 | 943 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 852 | 943 | 852 | 1,363 | ||||
Provision for (recapture of) loan losses | 52 | (423) | ||||||
Charge-offs | (17) | (124) | ||||||
Recoveries | 56 | 36 | ||||||
Ending balance | 943 | 943 | 852 | |||||
Unallocated | ||||||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | 715 | |||||||
Provision for (recapture of) loan losses | (205) | |||||||
Ending balance | $ 510 | 715 | 510 | 715 | ||||
Reconciliation of the allowance for loan losses | ||||||||
Beginning balance | $ 656 | $ 715 | 656 | 599 | ||||
Provision for (recapture of) loan losses | 59 | 57 | ||||||
Ending balance | $ 715 | $ 715 | $ 656 |
ALLOWANCE FOR LOAN LOSSES - Imp
ALLOWANCE FOR LOAN LOSSES - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Allowance for Loan Losses | ||
Individually Evaluated for Impairment | $ 6 | |
Collectively Evaluated for Impairment | 15,303 | |
Total | 15,309 | $ 14,523 |
Individually Evaluated for Impairment | 8 | |
Collectively Evaluated for Impairment | 14,515 | |
Total | 14,523 | |
Recorded Investment in Loans | ||
Individually Evaluated for Impairment | 629 | 717 |
Collectively Evaluated for Impairment | 1,008,227 | 989,691 |
Total | 1,008,856 | 990,408 |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 3,123 | |
Total | 3,123 | 2,422 |
Collectively Evaluated for Impairment | 2,422 | |
Total | 2,422 | |
Recorded Investment in Loans | ||
Individually Evaluated for Impairment | 79 | 100 |
Collectively Evaluated for Impairment | 232,789 | 227,991 |
Total | 232,868 | 228,091 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 8,894 | |
Total | 8,894 | 9,037 |
Collectively Evaluated for Impairment | 9,037 | |
Total | 9,037 | |
Recorded Investment in Loans | ||
Individually Evaluated for Impairment | 100 | 122 |
Collectively Evaluated for Impairment | 564,396 | 582,715 |
Total | 564,496 | 582,837 |
Commercial Real Estate Portfolio Segment | Land | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 93 | |
Total | 93 | 168 |
Collectively Evaluated for Impairment | 168 | |
Total | 168 | |
Recorded Investment in Loans | ||
Collectively Evaluated for Impairment | 6,437 | 11,556 |
Total | 6,437 | 11,556 |
Commercial Real Estate Portfolio Segment | Multi-Family | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 798 | |
Total | 798 | 845 |
Collectively Evaluated for Impairment | 845 | |
Total | 845 | |
Recorded Investment in Loans | ||
Collectively Evaluated for Impairment | 55,836 | 60,211 |
Total | 55,836 | 60,211 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 764 | |
Total | 764 | 393 |
Collectively Evaluated for Impairment | 393 | |
Total | 393 | |
Recorded Investment in Loans | ||
Collectively Evaluated for Impairment | 47,762 | 24,160 |
Total | 47,762 | 24,160 |
Consumer | ||
Allowance for Loan Losses | ||
Individually Evaluated for Impairment | 6 | |
Collectively Evaluated for Impairment | 1,121 | |
Total | 1,127 | 943 |
Individually Evaluated for Impairment | 8 | |
Collectively Evaluated for Impairment | 935 | |
Total | 943 | |
Recorded Investment in Loans | ||
Individually Evaluated for Impairment | 450 | 495 |
Collectively Evaluated for Impairment | 101,007 | 83,058 |
Total | 101,457 | 83,553 |
Unallocated | ||
Allowance for Loan Losses | ||
Collectively Evaluated for Impairment | 510 | |
Total | $ 510 | 715 |
Collectively Evaluated for Impairment | 715 | |
Total | $ 715 |
ALLOWANCE FOR LOAN LOSSES - Unf
ALLOWANCE FOR LOAN LOSSES - Unfunded Loan Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in the allowance for unfunded loan commitments | |||
Beginning balance | $ 424 | $ 509 | $ 474 |
Net change in allowance for unfunded loan commitments | (17) | (85) | 35 |
Ending balance | $ 407 | $ 424 | $ 509 |
ALLOWANCE FOR LOAN LOSSES - Ana
ALLOWANCE FOR LOAN LOSSES - Analysis of loans by aging category (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | $ 283 | $ 291 |
Total Past Due and Non-accrual | 3,830 | 30,152 |
Total loans | 1,008,856 | 990,408 |
30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,978 | 8,053 |
90 Days and Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,569 | 21,808 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,005,026 | 960,256 |
Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 232,868 | |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 564,496 | |
Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | |
Multi-Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,836 | |
Real Estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 47,762 | |
Commercial Real Estate Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 907,399 | |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 97 | 118 |
Total Past Due and Non-accrual | 3,633 | 29,679 |
Total loans | 232,868 | 228,091 |
Commercial Real Estate Portfolio Segment | Commercial Business | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,967 | 7,753 |
Commercial Real Estate Portfolio Segment | Commercial Business | 90 Days and Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,569 | 21,808 |
Commercial Real Estate Portfolio Segment | Commercial Business | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 229,235 | 198,412 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 100 | 122 |
Total Past Due and Non-accrual | 100 | 122 |
Total loans | 564,496 | 582,837 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 564,396 | 582,715 |
Commercial Real Estate Portfolio Segment | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | 11,556 |
Commercial Real Estate Portfolio Segment | Land | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | 11,556 |
Commercial Real Estate Portfolio Segment | Multi-Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,836 | 60,211 |
Commercial Real Estate Portfolio Segment | Multi-Family | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,836 | 60,211 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due and Non-accrual | 291 | |
Total loans | 47,762 | 24,160 |
Commercial Real Estate Portfolio Segment | Real Estate Construction | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 291 | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 47,762 | 23,869 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual | 86 | 51 |
Total Past Due and Non-accrual | 97 | 60 |
Total loans | 101,457 | 83,553 |
Consumer | 30 To 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11 | 9 |
Consumer | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 101,360 | $ 83,493 |
ALLOWANCE FOR LOAN LOSSES - Cre
ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 1,008,856 | $ 990,408 |
Total Loans Receivable | 990,408 | |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 987,074 | |
Total Loans Receivable | 976,208 | |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 19,135 | |
Total Loans Receivable | 7,795 | |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,647 | |
Total Loans Receivable | 6,405 | |
Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 232,868 | |
Total Loans Receivable | 228,091 | |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 564,496 | |
Total Loans Receivable | 582,837 | |
Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | |
Total Loans Receivable | 11,556 | |
Multi-Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,836 | |
Total Loans Receivable | 60,211 | |
Real Estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 47,762 | |
Total Loans Receivable | 24,160 | |
Commercial Real Estate Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 907,399 | |
Total Loans Receivable | 906,855 | |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 232,868 | 228,091 |
Total Loans Receivable | 228,091 | |
Commercial Real Estate Portfolio Segment | Commercial Business | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 231,384 | |
Total Loans Receivable | 227,435 | |
Commercial Real Estate Portfolio Segment | Commercial Business | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,367 | |
Total Loans Receivable | 511 | |
Commercial Real Estate Portfolio Segment | Commercial Business | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 117 | |
Total Loans Receivable | 145 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 564,496 | 582,837 |
Total Loans Receivable | 582,837 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 544,426 | |
Total Loans Receivable | 569,417 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,626 | |
Total Loans Receivable | 7,211 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,444 | |
Total Loans Receivable | 6,209 | |
Commercial Real Estate Portfolio Segment | Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | 11,556 |
Total Loans Receivable | 11,556 | |
Commercial Real Estate Portfolio Segment | Land | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,437 | |
Total Loans Receivable | 11,556 | |
Commercial Real Estate Portfolio Segment | Multi-Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,836 | 60,211 |
Total Loans Receivable | 60,211 | |
Commercial Real Estate Portfolio Segment | Multi-Family | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 55,694 | |
Total Loans Receivable | 60,138 | |
Commercial Real Estate Portfolio Segment | Multi-Family | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 142 | |
Total Loans Receivable | 73 | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 47,762 | 24,160 |
Total Loans Receivable | 24,160 | |
Commercial Real Estate Portfolio Segment | Real Estate Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 47,762 | |
Total Loans Receivable | 24,160 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 101,457 | 83,553 |
Total Loans Receivable | 83,553 | |
Consumer | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 101,371 | |
Total Loans Receivable | 83,502 | |
Consumer | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 86 | |
Total Loans Receivable | $ 51 |
ALLOWANCE FOR LOAN LOSSES - Ave
ALLOWANCE FOR LOAN LOSSES - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment with No Specific Valuation Allowance | $ 534 | |
Recorded Investment with Specific Valuation Allowance | 95 | |
Total Recorded Investment | 629 | |
Unpaid Principal Balance | 731 | |
Related Specific Valuation Allowance | 6 | |
Recorded Investment with No Specific Valuation Allowance | $ 481 | |
Recorded Investment with Specific Valuation Allowance | 236 | |
Total Recorded Investment | 717 | |
Unpaid Principal Balance | 924 | |
Related Specific Valuation Allowance | 8 | |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment with No Specific Valuation Allowance | 79 | |
Total Recorded Investment | 79 | |
Unpaid Principal Balance | 127 | |
Recorded Investment with No Specific Valuation Allowance | 100 | |
Total Recorded Investment | 100 | |
Unpaid Principal Balance | 143 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment with No Specific Valuation Allowance | 100 | |
Total Recorded Investment | 100 | |
Unpaid Principal Balance | 162 | |
Recorded Investment with No Specific Valuation Allowance | 122 | |
Total Recorded Investment | 122 | |
Unpaid Principal Balance | 178 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment with No Specific Valuation Allowance | 355 | |
Recorded Investment with Specific Valuation Allowance | 95 | |
Total Recorded Investment | 450 | |
Unpaid Principal Balance | 442 | |
Related Specific Valuation Allowance | $ 6 | |
Recorded Investment with No Specific Valuation Allowance | 259 | |
Recorded Investment with Specific Valuation Allowance | 236 | |
Total Recorded Investment | 495 | |
Unpaid Principal Balance | 603 | |
Related Specific Valuation Allowance | $ 8 |
ALLOWANCE FOR LOAN LOSSES - I_2
ALLOWANCE FOR LOAN LOSSES - Impaired Loans, Average Recorded Investment and Interest Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | $ 676 | ||
Interest Recognized on Impaired Loans | 24 | ||
Average Recorded Investment | $ 1,284 | $ 4,658 | |
Interest Recognized on Impaired Loans | 40 | 207 | |
Commercial Real Estate Portfolio Segment | Commercial Business | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 90 | ||
Average Recorded Investment | 110 | 130 | |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 111 | ||
Average Recorded Investment | 660 | 2,008 | |
Interest Recognized on Impaired Loans | 16 | 61 | |
Commercial Real Estate Portfolio Segment | Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 713 | ||
Interest Recognized on Impaired Loans | 40 | ||
Commercial Real Estate Portfolio Segment | Multi-Family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 1,313 | ||
Interest Recognized on Impaired Loans | 77 | ||
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 475 | ||
Interest Recognized on Impaired Loans | $ 24 | ||
Average Recorded Investment | 514 | 494 | |
Interest Recognized on Impaired Loans | $ 24 | $ 29 |
ALLOWANCE FOR LOAN LOSSES - TDR
ALLOWANCE FOR LOAN LOSSES - TDRs by Interest Accrual Status (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrual | $ 450 | $ 495 |
Nonaccrual | 179 | 222 |
Total | 629 | 717 |
Commercial Real Estate Portfolio Segment | Commercial Business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 79 | 100 |
Total | 79 | 100 |
Commercial Real Estate Portfolio Segment | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 100 | 122 |
Total | 100 | 122 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrual | 450 | 495 |
Total | $ 450 | $ 495 |
ALLOWANCE FOR LOAN LOSSES - Add
ALLOWANCE FOR LOAN LOSSES - Additional information (Details) | 12 Months Ended | ||
Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) | |
ALLOWANCE FOR LOAN LOSSES | |||
Interest income foregone on non-accrual loans | $ | $ 14,000 | $ 24,000 | $ 49,000 |
Number of TDR loans default | item | 0 | 0 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
PREMISES AND EQUIPMENT | ||
Total | $ 39,785 | $ 36,507 |
Less accumulated depreciation and amortization | (19,666) | (19,341) |
Premises and equipment, net | 20,119 | 17,166 |
Land | ||
PREMISES AND EQUIPMENT | ||
Total | 5,715 | 4,714 |
Buildings and improvements | ||
PREMISES AND EQUIPMENT | ||
Total | 18,494 | 17,030 |
Leasehold improvements | ||
PREMISES AND EQUIPMENT | ||
Total | 3,965 | 3,998 |
Furniture and equipment | ||
PREMISES AND EQUIPMENT | ||
Total | 11,578 | $ 10,765 |
Construction in progress | ||
PREMISES AND EQUIPMENT | ||
Total | $ 33 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
PREMISES AND EQUIPMENT | |||
Depreciation and amortization expense | $ 1.7 | $ 1.5 | $ 1.4 |
GOODWILL (Details)
GOODWILL (Details) | 12 Months Ended | |
Oct. 31, 2022 USD ($) | Mar. 31, 2023 item | |
GOODWILL | ||
Number of Reporting Units | item | 2 | |
Goodwill impairment | $ | $ 0 |
DEPOSITS - Summary of Deposit A
DEPOSITS - Summary of Deposit Accounts (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
DEPOSITS | ||
Non-interest-bearing | $ 404,937 | $ 494,831 |
Interest-bearing checking | 254,522 | 287,861 |
Money market | 221,778 | 299,738 |
Savings accounts | 255,147 | 340,076 |
Certificates of deposit | 128,833 | 111,372 |
Total | $ 1,265,217 | $ 1,533,878 |
DEPOSITS - Maturities of certif
DEPOSITS - Maturities of certificates of deposit for future years (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
DEPOSITS | |
2024 | $ 84,603 |
2025 | 37,569 |
2026 | 4,143 |
2027 | 1,193 |
2028 | 531 |
Thereafter | 794 |
Total | $ 128,833 |
DEPOSITS - Interest Expense by
DEPOSITS - Interest Expense by Deposit Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
DEPOSITS | |||
Interest-bearing checking | $ 89 | $ 87 | $ 85 |
Money market | 415 | 150 | 153 |
Savings accounts | 219 | 247 | 418 |
Certificates of deposit | 779 | 940 | 1,888 |
Total | $ 1,502 | $ 1,424 | $ 2,544 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
DEPOSITS | ||
Time Deposits More Than 250,000 | $ 40.3 | $ 32.7 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
FEDERAL HOME LOAN BANK ADVANCES | ||
FHLB advances | $ 123,754 | |
Weighted average interest rate on FHLB advances | 4.88% | 0.31% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES - Additional Information (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Federal Home Loan Bank, Advances [Line Items] | |
Loans pledged as collateral | $ 993,547 |
Assets pledged as collateral | |
Federal Home Loan Bank, Advances [Line Items] | |
Percentage of total assets equal to bank credit line from FHLB | 45% |
Bank additional borrowing capacity from FHLB | $ 191,600 |
Assets pledged as collateral | FHLB advances | |
Federal Home Loan Bank, Advances [Line Items] | |
Loans pledged as collateral | $ 511,300 |
JUNIOR SUBORDINATED DEBENTURE_2
JUNIOR SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
JUNIOR SUBORDINATED DEBENTURES | ||
Amount Outstanding | $ 27,836 | |
Fair value adjustment | (918) | |
Total Debentures | $ 26,918 | $ 26,833 |
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 | 6.23% | |
Maturity Date | 3/2036 | |
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 | 6.22% | |
Maturity Date | 9/2037 | |
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 | 8.23% | |
Maturity Date | 6/2033 |
JUNIOR SUBORDINATED DEBENTURE_3
JUNIOR SUBORDINATED DEBENTURES - Additional Information (Details) | 12 Months Ended | |
Mar. 31, 2023 USD ($) item | Mar. 31, 2022 USD ($) | |
JUNIOR SUBORDINATED DEBENTURES | ||
Maximum number of consecutive quarters for deferred payment of each debenture | item | 20 | |
Debentures issued to grantor trusts | $ 26,900,000 | $ 26,800,000 |
Common securities issued by grantor trusts | $ 836,000 | $ 836,000 |
Riverview Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month LIBOR | |
Interest basis spread on variable rate | 1.36% | |
Riverview Bancorp Statutory Trust II | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month LIBOR | |
Interest basis spread on variable rate | 1.35% | |
Merchants Bancorp Statutory Trust I | ||
JUNIOR SUBORDINATED DEBENTURES | ||
Description of variable rate | three-month LIBOR | |
Interest basis spread on variable rate | 3.10% |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||||||||||
Current | $ 5,754 | $ 5,446 | $ 4,410 | ||||||||
Deferred | (144) | 1,010 | (1,429) | ||||||||
Total | $ 1,102 | $ 1,575 | $ 1,567 | $ 1,366 | $ 1,282 | $ 1,661 | $ 1,933 | $ 1,580 | $ 5,610 | $ 6,456 | $ 2,981 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Deferred compensation | $ 78 | $ 57 |
Allowance for loan losses | 3,772 | 3,588 |
Accrued expenses | 160 | 170 |
Accumulated depreciation and amortization | 918 | 881 |
Deferred gain on sale | 34 | 52 |
Deferred income | 57 | 107 |
Purchase accounting | 46 | 74 |
Net unrealized loss on investment securities available for sale | 5,782 | 3,141 |
Operating lease liabilities | 1,695 | 1,993 |
Other | 429 | 420 |
Total deferred tax assets | 12,971 | 10,483 |
Deferred tax liabilities: | ||
FHLB stock dividends | (38) | (38) |
Prepaid expenses | (241) | (171) |
Operating lease ROU assets | (1,609) | (1,898) |
Loan fees/costs | (797) | (875) |
Total deferred tax liabilities | (2,685) | (2,982) |
Deferred tax assets, net | $ 10,286 | $ 7,501 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State and local income tax rate | 3% | 3% | 3% |
Employee Stock Ownership Plan ("ESOP") market value adjustment | (0.10%) | (0.10%) | (0.10%) |
BOLI | (0.80%) | (0.70%) | (1.50%) |
Other, net | 0.60% | (0.40%) | (0.30%) |
Effective federal income tax rate | 23.70% | 22.80% | 22.10% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||
Federal corporate income tax rate | 21% | 21% | 21% |
Base year allowance for loan losses | $ 2,200,000 | $ 2,200,000 | |
Unrecognized deferred tax liability | 528,000 | 528,000 | |
Unrecognized tax benefits | 0 | 0 | |
Income tax accrued interest and penalties | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options granted | 0 | 0 | 0 |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 0 years | ||
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 440,000 | $ 401,000 | |
Stock based Compensation Expense | $ 390,000 | $ 319,000 | $ 352,000 |
Number of stock awards granted | 71,696 | 69,285 | |
Restricted stock | Weighted average | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1.12 | ||
Vesting period | 1 year 6 months 10 days | ||
Performance Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock awards granted | 56,125 | 54,011 | |
Time Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock awards granted | 15,571 | 15,274 | |
Retirement Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expenses related to plan | $ 519,000 | $ 529,000 | $ 525,000 |
Directors' and Executive Officers' Deferred Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred compensation plan annual interest rate | 2.98% | 2.97% | 3.61% |
Aggregate liability under the plan | $ 326,000 | $ 237,000 | |
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term | 10 years | ||
Number of shares reserved for common stock | 1,800,000 | ||
Unrecognized compensation expense | $ 0 | ||
Stock based Compensation Expense | 0 | 0 | $ 0 |
Total intrinsic value of stock options exercised | $ 7,000 | $ 25,000 | $ 68,000 |
EMPLOYEE BENEFIT PLANS - Activi
EMPLOYEE BENEFIT PLANS - Activity related to options under all plans (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Number of Shares | |||
Balance, beginning of year | 17,332 | 23,332 | 43,332 |
Options exercised | (1,511) | (6,000) | (20,000) |
Options expired | (1,511) | ||
Balance, end of year | 14,310 | 17,332 | 23,332 |
Weighted Average Exercise Price | |||
Balance, beginning of year | $ 2.78 | $ 2.78 | $ 2.69 |
Options exercised | 2.78 | 2.78 | 2.58 |
Options expired | 2.78 | ||
Balance, end of year | $ 2.78 | $ 2.78 | $ 2.78 |
EMPLOYEE BENEFIT PLANS - Addi_2
EMPLOYEE BENEFIT PLANS - Additional information regarding options outstanding, by exercise price range (Details) - Stock options - $1.00 - $3.00 | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Price, lower | $ 1 |
Range of Exercise Price, upper | $ 3 |
Weighted Avg Remaining Contractual Life (years) | 3 months 14 days |
Options Outstanding, Number | shares | 14,310 |
Options Outstanding, Weighted Average Exercise Price | $ 2.78 |
Options Exercisable, Number | shares | 14,310 |
Options Exercisable, Weighted Average Exercise Price | $ 2.78 |
EMPLOYEE BENEFIT PLANS - Stock
EMPLOYEE BENEFIT PLANS - Stock Options Outstanding, less estimated forfeitures (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock options fully vested and expected to vest: | ||
Number | 14,310 | 17,332 |
Weighted average exercise price | $ 2.78 | $ 2.78 |
Aggregate intrinsic value (1) | $ 37,000 | $ 83,000 |
Weighted average contractual term of options (years) | 3 months 14 days | 1 year 3 months 14 days |
Stock options fully vested and currently exercisable: | ||
Number | 14,310 | 17,332 |
Weighted average exercise price | $ 2.78 | $ 2.78 |
Aggregate intrinsic value (1) | $ 37,000 | $ 83,000 |
Weighted average contractual term of options (years) | 3 months 14 days | 1 year 3 months 14 days |
EMPLOYEE BENEFIT PLANS - Restri
EMPLOYEE BENEFIT PLANS - Restricted stock (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Time Based | ||
Number of Unvested Shares | ||
Balance, beginning of period | 26,855 | 45,616 |
Granted | 15,571 | 15,274 |
Forfeited | (4,417) | |
Vested | (12,449) | (29,618) |
Balance, end of period | 29,977 | 26,855 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 6.02 | $ 6.57 |
Granted | 6.30 | 7.08 |
Forfeited | 5.82 | |
Vested | 6.07 | 7.43 |
Balance, end of period | $ 6.14 | $ 6.02 |
Performance Based | ||
Number of Unvested Shares | ||
Balance, beginning of period | 121,492 | 96,772 |
Granted | 56,125 | 54,011 |
Forfeited | (2,977) | (16,559) |
Vested | (41,995) | (12,732) |
Balance, end of period | 132,645 | 121,492 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 5.70 | $ 5.27 |
Granted | 6.30 | 7.06 |
Forfeited | 7.56 | 5.55 |
Vested | 5.26 | 8.35 |
Balance, end of period | $ 6.05 | $ 5.70 |
Restricted stock | ||
Number of Unvested Shares | ||
Balance, beginning of period | 148,347 | 142,388 |
Granted | 71,696 | 69,285 |
Forfeited | (2,977) | (20,976) |
Vested | (54,444) | (42,350) |
Balance, end of period | 162,622 | 148,347 |
Weighted Average Grant Date Fair Value | ||
Balance, beginning of period | $ 5.76 | $ 5.69 |
Granted | 6.30 | 7.06 |
Forfeited | 7.56 | 5.61 |
Vested | 5.45 | 7.71 |
Balance, end of period | $ 6.07 | $ 5.76 |
EMPLOYEE BENEFIT PLANS - Employ
EMPLOYEE BENEFIT PLANS - Employee stock ownership plan (Details) | 12 Months Ended | ||
Mar. 31, 2023 USD ($) item shares | Mar. 31, 2022 USD ($) item shares | Mar. 31, 2021 USD ($) item shares | |
Employee stock ownership plan [Abstract] | |||
Number of hours of service | item | 1,000 | 1,000 | 1,000 |
Bank purchased common stock on open market and contributed such shares to ESOP | 25,000 | 25,000 | 5,354 |
Expense related to ESOP | $ | $ 187,000 | $ 192,000 | $ 96,000 |
Shares released and allocated to participants | 368,194 | 387,588 |
EMPLOYEE BENEFIT PLANS - Trust
EMPLOYEE BENEFIT PLANS - Trust Company Stock Options (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options exercised (in shares) | 1,511 | 6,000 | 20,000 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 0 | 0 | 0 |
Trust Company | President and Chief Executive Officer | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock options outstanding | 0 | 0 | |
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 0 |
Stock Option Plans | Trust Company | President and Chief Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options exercised (in shares) | 0 | 500 | 500 |
Stock options granted (in shares) | 0 | 0 | 0 |
Stock-based compensation expense | $ 44,000 |
SHAREHOLDERS' EQUITY AND REGU_3
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) |
SHAREHOLDERS' EQUITY AND REGULATORY CAPITAL REQUIREMENTS. | ||
Total capital to risk weighted assets actual amount | $ 180,001 | $ 168,486 |
Total capital to risk weighted assets actual ratio | 0.1694 | 0.1638 |
Total capital to risk weighted assets for capital adequacy purposes amount | $ 85,013 | $ 82,305 |
Total capital to risk weighted assets for capital adequacy purposes ratio | 0.080 | 0.080 |
Total capital to risk weighted assets for capital adequacy purposes well capitalized under prompt corrective action amount | $ 106,266 | $ 102,881 |
Total capital to risk weighted assets for capital adequacy purposes well capitalized under prompt corrective action ratio | 0.100 | 0.100 |
Tier 1 to risk weighted assets actual amount | $ 166,688 | $ 155,601 |
Tier 1 to risk weighted assets actual ratio | 0.1569 | 0.1512 |
Tier 1 to risk weighted assets for capital adequacy purposes amount | $ 63,760 | $ 61,728 |
Tier 1to risk weighted assets for capital adequacy purposes ratio | 0.060 | 0.060 |
Tier 1 to risk weighted assets well capitalized under prompt corrective action amount | $ 85,013 | $ 82,305 |
Tier 1 to risk weighted assets well capitalized under prompt corrective action ratio | 0.080 | 0.080 |
Common equity Tier 1 capital to risk weighted assets actual amount | $ 166,688 | $ 155,601 |
Common equity Tier 1 capital to risk weighted assets actual ratio | 0.1569 | 0.1512 |
Common equity Tier 1 to risk weighted assets for capital adequacy purposes amount | $ 47,820 | $ 46,296 |
Common equity Tier 1 to risk weighted assets for capital adequacy purposes ratio | 0.045 | 0.045 |
Common equity Tier 1 to risk weighted assets well capitalized under prompt corrective action amount | $ 69,073 | $ 66,872 |
Common equity Tier 1 to risk weighted assets well capitalized under prompt corrective action ratio | 0.065 | 0.065 |
Tier 1 capital leverage to average tangible assets actual amount | $ 166,688 | $ 155,601 |
Tier 1 capital leverage to average tangible assets actual ratio | 0.1047 | 0.0919 |
Tier 1 capital leverage to average tangible assets for capital adequacy purposes amount | $ 63,679 | $ 67,763 |
Tier 1 capital leverage to average tangible assets for capital adequacy purposes ratio | 0.040 | 0.040 |
Tier 1 capital leverage to average tangible assets well capitalized under prompt corrective action amount | $ 79,599 | $ 84,704 |
Tier 1 capital leverage to average tangible assets well capitalized under prompt corrective action ratio | 0.050 | 0.050 |
EARNINGS PER SHARE - Earnings P
EARNINGS PER SHARE - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Basic EPS computation: | |||||||||||
Numerator-net income (in dollars) | $ 2,983 | $ 5,240 | $ 5,194 | $ 4,652 | $ 4,125 | $ 5,510 | $ 6,430 | $ 5,755 | $ 18,069 | $ 21,820 | $ 10,472 |
Denominator-weighted average common shares outstanding | 21,637,526 | 22,213,029 | 22,296,195 | ||||||||
Basic EPS (in dollars per share) | $ 0.14 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.25 | $ 0.29 | $ 0.26 | $ 0.84 | $ 0.98 | $ 0.47 |
Diluted EPS computation: | |||||||||||
Numerator-net income (in dollars) | $ 2,983 | $ 5,240 | $ 5,194 | $ 4,652 | $ 4,125 | $ 5,510 | $ 6,430 | $ 5,755 | $ 18,069 | $ 21,820 | $ 10,472 |
Denominator-weighted average common shares outstanding | 21,637,526 | 22,213,029 | 22,296,195 | ||||||||
Effect of dilutive stock options | 8,000 | 12,000 | 17,000 | ||||||||
Weighted average common shares and common stock equivalents | 21,646,101 | 22,224,947 | 22,312,831 | ||||||||
Diluted EPS (in dollars per share) | $ 0.14 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.25 | $ 0.29 | $ 0.26 | $ 0.83 | $ 0.98 | $ 0.47 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional information (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Sep. 09, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Nov. 17, 2022 | |
EARNINGS PER SHARE | |||||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | 0 | ||
March 2022 Repurchase Program | |||||
EARNINGS PER SHARE | |||||
Maximum shares repurchase amount | $ 5 | ||||
Average price | $ 6.96 | ||||
Shares repurchased and retired | 718,734 | ||||
Shares repurchased and retired value | $ 5 | ||||
November 2022 Repurchase Program | |||||
EARNINGS PER SHARE | |||||
Maximum shares repurchase amount | $ 2.5 | ||||
Average price | $ 6.74 | ||||
Shares repurchased and retired | 285,172 | ||||
Shares repurchased and retired value | $ 1.9 |
FAIR VALUE MEASUREMENTS - Estim
FAIR VALUE MEASUREMENTS - Estimated Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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 |
Transfers of assets into level 3 | 0 | 0 |
Transfers of assets out of level 3 | 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 | 211,499 | 165,782 |
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 | 40,261 | 39,604 |
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 | 85,907 | 40,705 |
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 | 28,877 | 32,717 |
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 | 15,471 | 16,945 |
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 | 40,983 | 35,811 |
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 | 211,499 | 165,782 |
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 | 40,261 | 39,604 |
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 | 85,907 | 40,705 |
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 | 28,877 | 32,717 |
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 | 15,471 | 16,945 |
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 | $ 40,983 | $ 35,811 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on a Non-recurring Basis (Details) - Nonrecurring basis - Impaired loans - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nonrecurring assets measured at fair value | $ 89 | $ 228 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total nonrecurring assets measured at fair value | $ 89 | $ 228 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 inputs for financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans Valuation Technique [Extensible Enumeration] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Impaired Loans Measurement Input [Extensible Enumeration] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Adjustments to the appraised values of impaired loans | $ 0 | $ 0 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 5.375% | 5.375% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 8% | 8% |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Carrying Value | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 22,044 | $ 241,424 |
Carrying Value | Certificates of deposit held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 249 | 249 |
Carrying Value | Investment securities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 211,499 | 165,782 |
Carrying Value | Investment securities held to maturity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 243,843 | 253,100 |
Carrying Value | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 993,547 | 975,885 |
Carrying Value | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,867 | 2,019 |
Carrying Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 128,833 | 111,372 |
Carrying Value | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 123,754 | |
Carrying Value | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 26,918 | 26,833 |
Total Estimated Fair Value | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 22,044 | 241,424 |
Total Estimated Fair Value | Certificates of deposit held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 248 | 253 |
Total Estimated Fair Value | Investment securities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 211,499 | 165,782 |
Total Estimated Fair Value | Investment securities held to maturity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 210,214 | 236,029 |
Total Estimated Fair Value | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 931,784 | 962,893 |
Total Estimated Fair Value | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,867 | 2,019 |
Total Estimated Fair Value | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 126,072 | 109,860 |
Total Estimated Fair Value | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 123,679 | |
Total Estimated Fair Value | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 17,698 | 16,046 |
Level 1 | Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 22,044 | 241,424 |
Level 2 | Certificates of deposit held for investment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 248 | 253 |
Level 2 | Investment securities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 211,499 | 165,782 |
Level 2 | Investment securities held to maturity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 210,214 | 236,029 |
Level 2 | FHLB stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6,867 | 2,019 |
Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 126,072 | 109,860 |
Level 2 | FHLB advances | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 123,679 | |
Level 3 | Loans Receivable. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 931,784 | 962,893 |
Level 3 | Junior subordinated debentures. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 17,698 | $ 16,046 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from External Customer [Line Items] | |||||||||||
BOLI | $ 821 | $ 800 | $ 813 | ||||||||
Net gains on sales of loans held for sale | 28 | ||||||||||
Contract with customer liability | $ 0 | $ 0 | 0 | 0 | |||||||
Revenue remaining performance obligation | 0 | 0 | 0 | 0 | |||||||
FHLMC loan servicing fees | 66 | 85 | 94 | ||||||||
Total non-interest income, net | $ 2,971 | $ 2,963 | $ 3,134 | $ 3,126 | $ 2,966 | $ 3,116 | $ 3,074 | $ 3,588 | 12,194 | 12,744 | 11,090 |
Asset management fees. | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Non-interest income | 4,734 | 4,107 | 3,646 | ||||||||
Debit card and ATM fees | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Non-interest income | 3,341 | 3,499 | 3,103 | ||||||||
Deposit related fees | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Non-interest income | 1,737 | 1,634 | 1,514 | ||||||||
Loan related fees | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Non-interest income | 539 | 1,247 | 1,229 | ||||||||
BOLI Death Benefit In Excess Of Cash Surrender Value | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
BOLI death benefit in excess of cash surrender value | 500 | ||||||||||
Other, net | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Non-interest income | $ 956 | $ 872 | $ 663 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Significant Off-balance Sheet Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total | $ 144,376 | $ 159,260 |
Commitments to extend credit: | Adjustable-rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total | 12,489 | 17,125 |
Commitments to extend credit: | Fixed-rate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total | 18 | 2,895 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total | 1,600 | 1,780 |
Undisbursed loan funds and unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total | $ 130,269 | $ 137,460 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Threshold limit for honoring of commitments | 45 days |
Commitments to sell | $ 0 |
Loans under warranty | 36,500,000 |
Allowance for FHLMC loans | $ 12,000 |
LEASES - Lease Right-of-use Ass
LEASES - Lease Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
LEASES | ||
Finance lease ROU assets | $ 1,278 | $ 1,355 |
Finance lease liability | $ 2,229 | $ 2,283 |
Finance lease remaining lease term | 16 years 8 months 4 days | 17 years 8 months 4 days |
Finance lease discount rate | 7.16% | 7.16% |
Operating lease ROU assets | $ 6,705 | $ 7,907 |
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 | $ 7,064 | $ 8,306 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Operating lease weighted-average remaining lease term | 6 years 1 month 24 days | 7 years 7 days |
Operating lease weighted-average discount rate | 1.78% | 1.81% |
LEASES - Lease Costs for Operat
LEASES - Lease Costs for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
LEASES | |||
Finance lease amortization of right-of-use asset | $ 77 | $ 77 | $ 77 |
Finance lease interest on lease liability | 162 | 165 | 168 |
Operating lease costs | 1,133 | 1,266 | 1,312 |
Variable lease costs | 209 | 209 | 209 |
Total lease cost | $ 1,581 | $ 1,717 | $ 1,766 |
LEASES - Undiscounted Cash Flow
LEASES - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Operating Leases | ||
2024 | $ 1,370 | |
2025 | 1,375 | |
2026 | 1,125 | |
2027 | 1,116 | |
2027 | 899 | |
Thereafter | 1,632 | |
Total minimum lease payments | 7,517 | |
Less: amount of lease payment representing interest | (453) | |
Lease liabilities | 7,064 | $ 8,306 |
Finance Lease | ||
2024 | 219 | |
2025 | 222 | |
2026 | 226 | |
2027 | 230 | |
2027 | 232 | |
Thereafter | 2,712 | |
Total minimum lease payments | 3,841 | |
Less: amount of lease payment representing interest | (1,612) | |
Lease liabilities | $ 2,229 | $ 2,283 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
LEASES | |||
Operating lease | $ 1,400,000 | $ 1,500,000 | $ 1,500,000 |
ROU lease assets obtained in exchange for operating lease liabilities | $ 441,000 | $ 6,148,000 |
RIVERVIEW BANCORP, INC. (PARE_3
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 22,044 | $ 241,424 |
TOTAL ASSETS | 1,589,712 | 1,740,096 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accrued expenses and other liabilities | 15,730 | 19,298 |
Shareholders' equity | 155,239 | 157,249 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,589,712 | 1,740,096 |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY). | ||
ASSETS | ||
Cash and cash equivalents | 5,480 | 10,867 |
Investment in the Bank | 175,833 | 173,223 |
Other assets | 2,342 | 1,321 |
TOTAL ASSETS | 183,655 | 185,411 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accrued expenses and other liabilities | 224 | 112 |
Dividend payable | 1,274 | 1,217 |
Borrowings | 26,918 | 26,833 |
Shareholders' equity | 155,239 | 157,249 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 183,655 | $ 185,411 |
RIVERVIEW BANCORP, INC. (PARE_4
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) - STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
EXPENSE: | |||||||||||
Total expense | $ 9,950 | $ 9,848 | $ 9,804 | $ 9,769 | $ 10,115 | $ 9,279 | $ 8,187 | $ 9,137 | $ 39,371 | $ 36,718 | $ 36,254 |
LOSS BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF THE BANK | 4,085 | 6,815 | 6,761 | 6,018 | 5,407 | 7,171 | 8,363 | 7,335 | 23,679 | 28,276 | 13,453 |
BENEFIT FOR INCOME TAXES | 1,102 | 1,575 | 1,567 | 1,366 | 1,282 | 1,661 | 1,933 | 1,580 | 5,610 | 6,456 | 2,981 |
NET INCOME | 2,983 | $ 5,240 | $ 5,194 | $ 4,652 | 4,125 | $ 5,510 | $ 6,430 | $ 5,755 | 18,069 | 21,820 | 10,472 |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||
INCOME: | |||||||||||
Interest on investment securities and other short-term investments | 129 | 16 | 17 | ||||||||
Total income | 129 | 16 | 17 | ||||||||
EXPENSE: | |||||||||||
Management service fees paid to the Bank | 143 | 143 | 143 | ||||||||
Other expenses | 1,424 | 670 | 731 | ||||||||
Total expense | 1,567 | 813 | 874 | ||||||||
LOSS BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED INCOME OF THE BANK | (1,438) | (797) | (857) | ||||||||
BENEFIT FOR INCOME TAXES | (303) | (167) | (180) | ||||||||
LOSS OF PARENT COMPANY | (1,135) | (630) | (677) | ||||||||
EQUITY IN UNDISTRIBUTED INCOME OF THE BANK | $ 19,204 | $ 22,450 | 19,204 | 22,450 | 11,149 | ||||||
NET INCOME | $ 18,069 | $ 21,820 | $ 10,472 |
RIVERVIEW BANCORP, INC. (PARE_5
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 2,983 | $ 5,240 | $ 5,194 | $ 4,652 | $ 4,125 | $ 5,510 | $ 6,430 | $ 5,755 | $ 18,069 | $ 21,820 | $ 10,472 |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Stock-based compensation expense | 390 | 319 | 396 | ||||||||
Changes in assets and liabilities: | |||||||||||
Net cash used in operating activities | 13,575 | 16,463 | 24,167 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Net cash provided by investing activities | (76,245) | (221,659) | (150,247) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Dividends paid | (5,117) | (4,670) | (4,478) | ||||||||
Proceeds from exercise of stock options | 4 | 16 | 50 | ||||||||
Repurchase of common stock | (6,706) | (1,940) | (1,447) | ||||||||
Net cash used in financing activities | (156,710) | 181,212 | 349,520 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (219,380) | (23,984) | 223,440 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 241,424 | 265,408 | 241,424 | 265,408 | 41,968 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 22,044 | 241,424 | 22,044 | 241,424 | 265,408 | ||||||
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 18,069 | 21,820 | 10,472 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Equity in undistributed income of the Bank | (19,204) | (22,450) | (11,149) | ||||||||
Amortization expense | 85 | 85 | 86 | ||||||||
Provision (benefit) for deferred income taxes | (1) | 2 | |||||||||
Stock-based compensation expense | 390 | 319 | 396 | ||||||||
Changes in assets and liabilities: | |||||||||||
Other assets | (1,019) | 131 | 224 | ||||||||
Accrued expenses and other liabilities | 112 | 48 | (417) | ||||||||
Net cash used in operating activities | (1,568) | (45) | (388) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Dividend from the Bank | 8,000 | 7,500 | 6,000 | ||||||||
Net cash provided by investing activities | 8,000 | 7,500 | 6,000 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Dividends paid | (5,117) | (4,670) | (4,478) | ||||||||
Proceeds from exercise of stock options | 4 | 16 | 50 | ||||||||
Repurchase of common stock | (6,706) | (1,940) | (1,447) | ||||||||
Net cash used in financing activities | (11,819) | (6,594) | (5,875) | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,387) | 861 | (263) | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 10,867 | $ 10,006 | 10,867 | 10,006 | 10,269 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 5,480 | $ 10,867 | $ 5,480 | $ 10,867 | $ 10,006 |
RIVERVIEW BANCORP, INC. (PARE_6
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): | |||||||||||
Interest and dividend income | $ 13,941 | $ 14,443 | $ 14,088 | $ 13,194 | $ 12,389 | $ 12,551 | $ 12,965 | $ 11,920 | $ 55,666 | $ 49,825 | $ 48,344 |
Interest expense | 2,127 | 743 | 657 | 533 | 483 | 492 | 589 | 636 | 4,060 | 2,200 | 3,427 |
Net interest income | 11,814 | 13,700 | 13,431 | 12,661 | 11,906 | 12,059 | 12,376 | 11,284 | 51,606 | 47,625 | 44,917 |
Provision for (recapture of) loan losses | 750 | (650) | (1,275) | (1,100) | (1,600) | (4,625) | 6,300 | ||||
Non-interest income, net | 2,971 | 2,963 | 3,134 | 3,126 | 2,966 | 3,116 | 3,074 | 3,588 | 12,194 | 12,744 | 11,090 |
Non-interest expense | 9,950 | 9,848 | 9,804 | 9,769 | 10,115 | 9,279 | 8,187 | 9,137 | 39,371 | 36,718 | 36,254 |
Income before income taxes | 4,085 | 6,815 | 6,761 | 6,018 | 5,407 | 7,171 | 8,363 | 7,335 | 23,679 | 28,276 | 13,453 |
Provision for income taxes | 1,102 | 1,575 | 1,567 | 1,366 | 1,282 | 1,661 | 1,933 | 1,580 | 5,610 | 6,456 | 2,981 |
Net income | $ 2,983 | $ 5,240 | $ 5,194 | $ 4,652 | $ 4,125 | $ 5,510 | $ 6,430 | $ 5,755 | $ 18,069 | $ 21,820 | $ 10,472 |
Basic earnings per common share (1) | $ 0.14 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.25 | $ 0.29 | $ 0.26 | $ 0.84 | $ 0.98 | $ 0.47 |
Diluted earnings per common share (1) | $ 0.14 | $ 0.24 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.25 | $ 0.29 | $ 0.26 | $ 0.83 | $ 0.98 | $ 0.47 |
RIVERVIEW BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED): | |||||||||||
Non-interest expense | $ 1,567 | $ 813 | $ 874 | ||||||||
Income before income taxes | (1,438) | (797) | (857) | ||||||||
Provision for income taxes | (303) | (167) | (180) | ||||||||
Net income | $ 18,069 | $ 21,820 | $ 10,472 |