Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) ("Riverview" or the "Company"), parent company of Riverview Bank (the "Bank") implemented a strategic balance sheet optimization. This included the reclassification of its entire held-to-maturity ("HTM") securities to available-for-sale ("AFS") securities. After the reclassification, Riverview sold $149.3 million in lower-yielding book value investment securities, with an average yield of 1.62%, for an estimated pre-tax loss of $11.4 million. A targeted approach was used to identify lower-yielding bonds, balancing the respective loss in relation to its book value. The goal was to minimize the loss while maximizing proceeds from the sale. Reclassifying the bonds from HTM to AFS will reduce overall equity. The reclassified bonds will be measured at fair value, with the impact recorded in accumulated other comprehensive income. Given Riverview's strong capital levels, no additional capital was needed to support the strategic optimization, and Riverview remains well-capitalized for regulatory purposes.

Riverview is taking a strategic and thoughtful approach to the use of excess capital in the reinvestment of the proceeds from the above-mentioned investment securities sale. Riverview expects to reinvest the proceeds into a combination of higher-yielding bonds, which will be classified as available for sale at the time of purchase, support loan originations, pay down its Federal Home Loan Bank borrowings, or hold in cash. Deploying these funds into higher-yielding earning assets or paying down borrowings will inherently increase the net interest income of the Bank on a go-forward basis. Dependent upon the combination of redeployment of funds, Riverview expects the estimated earn-back will be less than 3.5 years. The strategic optimization is expected to add approximately 25 basis points to net interest margin and approximately $0.13 to earnings per share annually, once fully realized.

This strategic optimization is not expected to impact Riverview's ability to continue with its existing active stock buyback.