RVSB

Riverview Bancorp ($RVSB) Executives Buy Shares Near 52-Week Highs, Betting on Future Growth Despite Mixed Results

05/22/2025 00:02

Executives at Riverview Bancorp Inc ($RVSB) have been buying shares near 52-week highs, signaling potential confidence in the small regional bank's prospects despite mixed financial results. Robert Benke, an officer at Riverview Bancorp, purchased 4,000 shares at $6.10 per share on May 19, representing a $24,400 investment. This follows director Larry Hoff's purchase of 3,300 shares at $6.05 per share on May 13, amounting to $19,965. What makes these transactions particularly noteworthy is that they occurred after $RVSB shares had already appreciated approximately 65% over the past year. Riverview Bancorp, headquartered in Vancouver, Washington, is a small regional bank holding company serving Washington and Oregon. With a market capitalization of approximately $126 million, the company provides commercial banking services, deposit products, and lending services to small and medium-sized businesses, professionals, and individual customers throughout the Pacific Northwest. The recent insider buying stands in contrast to significant selling by a major shareholder earlier this year. Martin Friedman, a major shareholder, sold a total of 236,848 shares in two transactions on February 11 and March 12, amounting to approximately $1.24 million. Friedman's sales were executed by FJ Capital Management on behalf of Bridge Equities XI, with Friedman disclaiming beneficial ownership of the securities except for his pecuniary interest. This pattern of insider transactions paints an interesting picture when considered alongside Riverview's mixed financial performance. In its most recent quarterly results announced in April 2025, the company reported adjusted earnings of $0.05 per share (up from -$0.14 year-over-year) and revenue of $12.90 million, a 42.6% increase that surpassed analyst expectations. However, looking at a longer timeframe, Riverview has struggled with profitability. In its Q2 2025 fiscal year results reported in October 2024, revenue declined 4.3% compared to the previous year, and net income fell 37% to $1.56 million. Profit margins also contracted from 19% to 12%. Despite these challenges, the company projects revenue growth of approximately 13% annually over the next two years, significantly outpacing the U.S. banking industry average of 6.7%. This optimistic outlook may be fueling the recent insider purchases. It's particularly significant that these insider buys occurred during a period of heightened market volatility due to U.S.-China trade tensions, inflation concerns, and interest rate uncertainty. In May 2025, U.S. consumer sentiment had fallen to near-record lows not seen since the early 1980s, and the Federal Reserve was expected to delay interest rate cuts until at least September due to trade uncertainties. Also worth noting is that in August 2024, investor David Nierenberg reported acquiring a 5.0% stake in Riverview Bancorp, stating he believed the securities were "significantly undervalued." Nierenberg sent private correspondence to the board requesting consideration of matters related to efficient operation of the company. The recent purchases by Benke and Hoff suggest management remains confident in the company's value and growth potential even after significant share price appreciation. Benke had previously purchased 5,000 shares in August last year and holds additional shares through the Riverview 401(k) Plan. $RVSB shares currently trade at approximately $6.10, representing 0.8 times book value (P/B ratio of 0.80), indicating a discount to asset value, though its P/E ratio of 26.30 reflects a somewhat premium valuation relative to earnings. The dividend yield stands at 1.31%, offering moderate income to shareholders. Analysts maintain a 'buy' rating on Riverview Bancorp with a median 12-month price target of $6.25, slightly above the current share price. Despite the insider buying and positive growth outlook, investors should weigh these signals against profitability challenges and macroeconomic risks that could impact the regional banking sector.

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