Riverview Bancorp Hits New 52-Week High

Zacks

Shares of Riverview Bancorp Inc. (RVSB) crafted a new 52-week high, touching $3.30 at the closing of the trading session on Feb 7. However, the stock closed the session at $3.23, which reflects a solid return of 53.8% in a year’s time. The trading volume for the session was 12,571 shares.

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days.

Growth Drivers

Impressive fiscal third-quarter 2014 results, including a significant improvement in the credit quality, as well as a strong capital position were the primary growth drivers for Riverview Bancorp.

On Jan 30, Riverview Bancorp reported its fiscal third-quarter 2014 earnings of 4 cents per share, significantly beating the Zacks Consensus Estimate of 2 cents. With this, the company delivered positive earnings surprises in 2 of the trailing 4 quarters.

A year-over-year increase of 14.2% in non-interest income and a decline of 9.75% in non-interest expenses were the tailwinds for the quarter. Also, asset quality exhibited a marked improvement.

Nonperforming assets declined 44.2% year over year while the quarter witnessed net recoveries as against net charge offs in the prior-year quarter. On the flip side, interest income fell 18% year over year and net loan balances declined 6.3%.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for 2014 advanced 15.4% to 15 cents per share. For 2015, it moved north 13.3% to 17 cents per share.

Some better-ranked Savings & Loan Institutes include Flushing Financial Corp. (FFIC), Kearny Financial Corp. (KRNY) and Meridian Interstate Bancorp, Inc. (EBSB). All these stocks carry a Zacks Rank #1 (Strong Buy).

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