RIVERVIEW BANCORP INC Income Taxes Disclosure
10. INCOME TAXES
Provision for income taxes consisted of the following for the years indicated (in thousands):
| Year Ended March 31 | ||||||||
| 2026 | | 2025 | | 2024 | ||||
Current | |||||||||
Federal | $ | (23) | $ | 859 | $ | 840 | |||
State | 107 | 214 | 127 | ||||||
Deferred |
|
|
| ||||||
Federal | (1,380) | 229 | (144) | ||||||
State | (197) | 33 | (21) | ||||||
Total | $ | (1,493) | $ | 1,335 | $ | 802 | |||
All pretax income from continuing operations for the periods presented was generated in ; the Company did not earn any foreign pretax income. As such, the Company has no foreign income tax expense from continuing operations.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at the dates indicated (in thousands):
| March 31, | | March 31, | |||
| 2026 |
| 2025 | |||
Deferred tax assets: | ||||||
ACL | $ | 3,748 | $ | 3,758 | ||
Accumulated depreciation and amortization |
| 1,194 |
| 1,079 | ||
Net operating loss - federal | 1,309 | — | ||||
Net unrealized loss on investment securities available for sale |
| 6,123 |
| 4,201 | ||
Operating lease liabilities | 917 | 1,072 | ||||
Other |
| 671 |
| 560 | ||
Total deferred tax assets |
| 13,962 |
| 10,670 | ||
Deferred tax liabilities: |
| |
| | ||
FHLB stock dividends |
| (35) |
| (35) | ||
Prepaid expenses |
| (351) |
| (339) | ||
Operating lease ROU assets | (871) | (1,019) | ||||
Loan fees/costs |
| (581) |
| (652) | ||
Total deferred tax liabilities |
| (1,838) |
| (2,045) | ||
Deferred tax assets, net | $ | 12,124 | $ | 8,625 | ||
A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows for the years indicated:
Year Ended March 31, | ||||||||||||||
2026 | 2025 | 2024 | ||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||
Statutory federal income (loss) tax rate | $ | (1,225) | (21.0) | % | $ | 1,310 | 21.0 | % | $ | 946 | 21.0 | % | ||
State and local income tax (benefit), net of federal income tax effect (1) | (71) | (1.2) |
| 247 | 4.0 |
| 232 | 5.2 | ||||||
Nontaxable or nondeductible item | ||||||||||||||
BOLI | (207) | (3.6) |
| (197) | (3.2) |
| (214) | (4.8) | ||||||
Other, net | 10 | 0.2 |
| (25) | (0.4) |
| (162) | (3.6) | ||||||
Effective federal income (loss) tax rate | $ | (1,493) | (25.6) | % | $ | 1,335 | 21.4 | % | $ | 802 | 17.8 | % | ||
| (1) | State taxes in contributed to the majority of the tax effect in this category. |
The following table presents the cash paid for income taxes, net of refunds received, by jurisdiction for the fiscal years ended March 31, 2026, 2025, and 2024:
2026 | 2025 | 2024 | ||||||
Federal | $ | 965 | $ | (186) | $ | 1,500 | ||
State | ||||||||
Oregon | 221 | 59 | 366 | |||||
Other | 1 | — | — | |||||
Total | $ | 1,187 | $ | (127) | $ | 1,866 | ||
For the fiscal years ended March 31, 2026 and 2025, the Company utilized a federal corporate income tax rate of 21.0%. The Bank’s retained earnings at March 31, 2026 and 2025 include a base year ACL, which amounted to $2.2 million, for which no federal income tax liability has been recognized. The related unrecognized deferred tax liability at March 31, 2026 and 2025 was $528,000. This represents the balance of the ACL created for tax purposes as of December 31, 1987. This amount is subject to recapture in the unlikely event that the Company’s banking subsidiaries (1) make distributions in excess of current and accumulated earnings and profits, as calculated for federal tax purposes, (2) redeem their stock, or (3) liquidate. Management does not expect this temporary difference to reverse in the foreseeable future.
As of March 31, 2026, the Bank had net operating loss carryforwards (“NOL”) for federal income tax purposes of $1.3 million. This NOL is carried forward indefinitely but is limited to 80% of taxable income.
At March 31, 2026 and 2025, the Company had no unrecognized tax benefits or uncertain tax positions. In addition, the Company had no accrued interest or penalties related to income tax matters as of March 31, 2026 and 2025. It is the Company’s policy to recognize potential accrued interest and penalties related to income tax matters as a component of the provision for income taxes. The Company is subject to U.S federal and State of Oregon income taxes. The years 2022 to 2024 remain open to examination for federal income taxes, and the years 2021 to 2024 remain open to State of Oregon examination.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Jun 12, 2026 | Showing above |
| 2025 | Jun 12, 2025 | |
| 2024 | Jun 14, 2024 | |
| 2023 | Jun 14, 2023 | |
| 2022 | Jun 15, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 17, 2020 | |
| 2019 | Jun 14, 2019 | |
| 2018 | Jun 13, 2018 | |
| 2017 | Jun 5, 2017 | |
| 2016 | Jun 14, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.