RIVERVIEW BANCORP INC Leases Disclosure
17. LEASES
The Company has a finance lease for the shell of the building constructed as the Company’s operations center which expires in November 2039. The Company is also obligated under various noncancelable operating lease agreements for land, buildings and equipment that require future minimum rental payments. For each operating lease with an initial term of more than 12 months, the Company records an operating lease ROU asset (representing the right to use the underlying asset for the lease term) and an operating lease liability (representing the obligation to make lease payments required under the terms of the lease). ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate – derived from information available at the lease commencement date – as the discount rate when determining the present value of lease payments. The Company does not have any operating leases with an initial term of 12 months or less. Certain operating leases contain various provisions for increases in rental rates, based either on changes in the published Consumer Price Index or a predetermined escalation schedule. Certain operating leases provide the Company with the option to extend the lease term one or more times following expiration of the initial term. Lease extensions are not reasonably certain and the Company generally does not include payments occurring during option periods in the calculation of its operating lease ROU assets and operating lease liabilities.
The table below presents the ROU assets and lease liabilities recorded in the consolidated balance sheet at the dates indicated (dollars in thousands):
| March 31, | March 31, |
| Classification in the | ||||
Leases |
| 2025 |
| 2024 |
| consolidated balance sheets | ||
Finance lease ROU assets | $ | 1,125 |
| $ | 1,202 |
| Financing lease ROU assets | |
Finance lease liability | $ | 2,099 |
| $ | 2,168 |
| Finance lease liability | |
Finance lease remaining lease term |
| 14.68 | years |
| 15.68 | years | ||
Finance lease discount rate |
| 7.16 | % |
| 7.16 | % |
| |
$ | 4,245 |
| $ | 5,479 |
| Prepaid expenses and other assets | ||
$ | 4,465 |
| $ | 5,780 |
| Accrued expenses and other liabilities | ||
Operating lease weighted-average remaining lease term |
| 4.65 | years |
| 5.34 | years | ||
Operating lease weighted-average discount rate |
| 1.67 | % |
| 1.74 | % |
| |
The table below presents certain information related to the lease costs for operating leases, which are recorded in occupancy and depreciation in the accompanying consolidated statements of income at the dates indicated (in thousands):
Year ended | Year ended | Year ended | |||||||
Lease Costs |
| March 31, 2025 |
| March 31, 2024 | March 31, 2023 | ||||
Finance lease amortization of ROU asset | $ | 77 | $ | 76 | $ | 77 | |||
Finance lease interest on lease liability |
| 153 |
| 158 |
| 162 | |||
Operating lease costs |
| 1,133 |
| 1,133 |
| 1,133 | |||
Variable lease costs |
| 105 |
| 209 |
| 209 | |||
Total lease cost (1) | $ | 1,468 | $ | 1,576 | $ | 1,581 | |||
(1) Income related to sub-lease activity is not significant and not presented herein.
Supplemental cash flow information – Operating cash flows paid for operating lease amounts included in the measurement of lease liabilities was $1.3 million, $1.4 million and $1.4 million for the years ended March 31, 2025, 2024 and 2023, respectively. During the years ended March 31, 2025, 2024 and 2023, the Company did not record any ROU assets that were exchanged for operating lease liabilities.
The following table reconciles the undiscounted cash flows for the periods presented related to the Company’s lease liabilities as of March 31, 2025 (in thousands):
Fiscal Year Ending March 31: |
| Operating |
| Finance | ||
Leases | Lease | |||||
2026 | $ | 1,125 | $ | 226 | ||
2027 |
| 1,116 |
| 230 | ||
2028 |
| 899 |
| 232 | ||
2029 |
| 684 |
| 232 | ||
2030 |
| 693 |
| 232 | ||
Thereafter |
| 254 |
| 2,248 | ||
Total minimum lease payments |
| 4,771 |
| 3,400 | ||
Less: amount of lease payments representing interest |
| (306) |
| (1,301) | ||
Lease liabilities | $ | 4,465 | $ | 2,099 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 12, 2025 | Showing above |
| 2024 | Jun 14, 2024 | |
| 2023 | Jun 14, 2023 | |
| 2022 | Jun 15, 2022 | |
| 2021 | Jun 21, 2021 | |
| 2020 | Jun 17, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.