Riverview Bancorp, Inc. implemented a balance sheet optimization strategy by reclassifying its entire held-to-maturity securities to available-for-sale and selling $149.3 million in lower-yielding investment securities for an estimated pre-tax loss of $11.4 million. The company expects this to add approximately 25 basis points to net interest margin and $0.13 to annual earnings per share, with an earn-back period of less than 3.5 years.
Key takeaways
Reclassified entire HTM securities portfolio to AFS on March 25, 2026
Sold $149.3 million investment securities with average yield of 1.62% for estimated pre-tax loss of $11.4 million
Expects +25 basis points to net interest margin and +$0.13 to annual EPS once fully realized
Earn-back period estimated at less than 3.5 years
Proceeds to be reinvested in higher-yielding bonds, loan originations, FHLB borrowings paydown, or cash
Remains well-capitalized with no additional capital needed; no impact on stock buyback program