Riverview Bank reclassifies securities portfolio, sells $149.3 million bonds

Riverview Bancorp Inc. (NASDAQ: RVSB) reclassified its entire held-to-maturity securities portfolio to available-for-sale status and sold $149.3 million in lower-yielding investment securities, according to a company statement.

The Vancouver, Washington-based bank sold securities with an average yield of 1.62% for an estimated pre-tax loss of $11.4 million. The company plans to reinvest proceeds into higher-yielding bonds, support loan originations, pay down Federal Home Loan Bank borrowings, or hold in cash.

The reclassification from held-to-maturity to available-for-sale will reduce overall equity, as the securities will be measured at fair value with impacts recorded in accumulated other comprehensive income. Riverview stated it remains well-capitalized for regulatory purposes and does not need additional capital.

The company expects the strategic optimization to add approximately 25 basis points to net interest margin and about $0.13 to earnings per share annually once fully realized. The estimated earn-back period is projected to be less than 3.5 years.

"This balance sheet optimization is part of our profitable growth priority," said Nicole Sherman, CEO and president. "The repositioning of the securities portfolio during the fourth fiscal quarter ending March 31 reflects a prudent deployment of excess capital aimed at enhancing our net interest margin."

The optimization is not expected to impact the company's existing stock buyback program. Riverview Bancorp had assets of $1.51 billion as of December 31, 2025, and operates 17 branches and 3 lending centers primarily in the Portland-Vancouver area.

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