Riverview Bancorp initiates $2 million stock buyback

Published 26/09/2024, 21:06
Riverview Bancorp initiates $2 million stock buyback

VANCOUVER, Wash. – Riverview Bancorp , Inc. (NASDAQ:RVSB), the parent company of Riverview Bank, has announced the launch of a stock repurchase program, authorized by its Board of Directors on Wednesday. The program allows for the buyback of up to $2 million of its outstanding common stock either on the open market at current market prices or through privately negotiated transactions.

The repurchase initiative is set to proceed until either the full amount of stock has been bought back or 12 months have elapsed since the program's effective date, subject to market conditions. Nicole Sherman, President and CEO of Riverview, stated that repurchasing stock is a strategic use of excess capital when it serves to enhance shareholder value.

Additionally, Riverview Bancorp has engaged in a trading plan with Keefe, Bruyette & Woods, Inc., in line with Rule 10b5-1 of the Securities Exchange Act of 1934. This plan is designed to permit stock repurchases even when the company might normally be prevented from doing so due to possession of non-public material information or because of insider trading laws or company-imposed blackout periods. Keefe, Bruyette & Woods, Inc. will have the authority to execute repurchases on behalf of Riverview under this plan.

There is no assurance as to the precise number of shares that will be repurchased, and the company reserves the right to suspend or discontinue the program at any time.

Riverview Bancorp, with $1.54 billion in assets as of June 30, 2024, is based in Vancouver, Washington. It operates Riverview Bank and Riverview Trust Company, providing community banking services through its 17 branches and 3 lending centers in the Portland-Vancouver area. The bank has been recognized as 'Best Bank' by local publications for 11 consecutive years.

This stock repurchase program announcement is based on a press release statement from Riverview Bancorp, Inc.


In other recent news, Riverview Bancorp has experienced significant changes in its leadership and governance. The company's shareholders reelected two directors, Stacey A. Graham and B. Nicole Sherman, with substantial approval rates of 93.39% and 97.30% respectively. Both directors will serve a three-year term expiring in 2027. Additionally, the executive compensation was approved with 87.1% support, demonstrating shareholder endorsement of the company's pay practices.

Riverview Bancorp has also welcomed Nicole Sherman as its new President and Chief Executive Officer. With over 25 years in the community banking sector and a key role in 10 successful mergers and acquisitions, Sherman took on this new role starting from July 1, 2024. She succeeded Dan Cox, who has now resumed his full-time role as EVP, Chief Operating Officer.

In a move towards bringing in additional expertise and oversight, Riverview Bancorp expanded its board from seven to eight members, effective from June 26, 2024. The company's top executives also announced they will be providing updates at the upcoming Raymond James 2024 U.S Bank and Banking on Tech Conferences. These recent developments highlight Riverview Bancorp's commitment to effective leadership and strategic growth.


InvestingPro Insights


Riverview Bancorp, Inc. (NASDAQ:RVSB) has shown a commitment to shareholder returns, as evidenced by its consistent dividend payments. An InvestingPro Tip highlights that the company has maintained dividend payments for 10 consecutive years, which aligns with their latest strategic move to repurchase stock, potentially enhancing shareholder value. Additionally, with a strong return over the last three months, investors may find the stock's recent performance an attractive aspect of the company's financial health.

InvestingPro Data provides key metrics that offer a deeper insight into Riverview's financial standing. The company's market capitalization stands at 98.1 million USD, reflecting its scale in the regional banking sector. Despite trading at a high earnings multiple with a P/E ratio of 51.1, which suggests a premium valuation, the company's price/book ratio in the last twelve months as of Q1 2025 is relatively low at 0.63, potentially indicating that the stock is undervalued based on its book value.

Moreover, Riverview Bancorp's commitment to returning value to shareholders is further supported by the InvestingPro Fair Value estimate of 5.39 USD, which is above the previous close price of 4.65 USD. For investors interested in exploring more about Riverview Bancorp, additional InvestingPro Tips can be found on the platform, offering a comprehensive analysis of the company's financials and market performance.

For a more detailed analysis, investors can access a total of 7 InvestingPro Tips for Riverview Bancorp, Inc. at https://www.investing.com/pro/RVSB.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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