River City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend

Rhea-AI Summary

River City Bank (RCBC) reported Q2 2025 net income of $15.4 million ($10.52 per diluted share), down from $17.2 million in Q2 2024. The bank achieved a significant milestone by surpassing $500 million in shareholders' equity for the first time in its history.

Key performance metrics include an 11.1% return on equity and 1.04% return on assets for H1 2025. The bank's loan portfolio saw substantial growth with average loans increasing by $478 million year-over-year, while average deposits grew by $259 million. Credit quality remains strong with nearly zero non-performing loans and an Allowance for Credit Losses of 2.33%.

The board approved a quarterly cash dividend of $0.40 per share, payable on August 12, 2025. The bank maintains strong liquidity with $964 million in cash and investments, plus $1.7 billion in available borrowing capacity.

Positive

• None.

Negative

• Net income decreased to $15.4 million from $17.2 million year-over-year
• Loan growth slower in H1 2025 due to reduced borrower demand
• $2.6 million reduction in income from interest rate swaps vs $2.1 million increase last year
• Six-month net income declined to $27.7 million from $35.9 million year-over-year

THE BANK CROSSED THE $500 MILLION MILESTONE IN SHAREHOLDERS' EQUITY FOR THE FIRST TIME IN ITS HISTORY

SACRAMENTO, CA / ACCESS Newswire / July 16, 2025 / River City Bank (the Bank) reported net income of $15.4 million, or $10.52 per diluted share, for the quarter ended June 30, 2025, which compares to $17.2 million, or $11.66 per diluted share, for the same period in 2024. Net income was $27.7 million or $18.91 per diluted share for the six months ended June 30, 2025, which compares to $35.9 million, or $24.29 per diluted share, for the six months ended June 30, 2024. The Bank's earnings for the six months ended June 30, 2025 resulted in an 11.1% return on equity capital and 1.04% return on assets. The Bank's book value per share rose to $356 as of June 30, 2025 from $310 per share as of June 30, 2024.

Significant items impacting quarterly net income for June 30, 2025 and 2024 include the following:

• Higher loan balances - Average loans outstanding for the quarter ended June 30, 2025 were $478 million higher than the same period in the prior year, thereby increasing interest income from loans despite a 0.21% decrease in loan yields to 5.38% (including the impact of fair value hedges) compared to the same period in 2024.

• Deposit growth - Average deposits for the quarter ended June 30, 2025 grew by $259 million compared to the same period in the prior year, partially supporting the Bank's loan growth, with the remainder financed by a reduction in excess cash balances. Cost of funds decreased for the quarter ended June 30, 2025 by 0.20% to 2.91% from the same period in 2024.

• The Bank recognized a $2.6 million reduction to income related to free-standing interest rate swaps during the current quarter compared to $2.1 million increase to income in the prior year quarter, or a variance of $4.7 million when comparing the two periods. The current quarter impact is made up of a mark-to-market loss of $4.0 million, partially offset by $1.4 million in net payments received from swap counterparties. These swaps were entered into for the purpose of hedging the medium-term fixed rate loans in the Bank's loan portfolio, as part of the Bank's standard interest rate risk management program. Until these interest rate swaps are designated as a hedge to specific assets or liabilities, the mark-to-market fluctuations (positive and negative) will flow through the income statement.

• The Bank recognized zero provision for credit losses for the current quarter compared to a provision of $3.0 million for the prior year quarter. The Bank had nearly zero non-performing loans as of June 30, 2025, and the Bank's Allowance for Credit Losses for Loans was 2.33% of Gross Loans as of June 30, 2025.

"The decrease in earnings vs. the prior year period is primarily a function of the accounting for a small portion of our interest rate swap portfolio. All our swaps have been executed to hedge our interest rate risk - none are for speculative purposes. As such, short-term mark-to-market gains and losses in the portfolio are not reflective of the long-term benefit to our balance sheet position," said Steve Fleming, president and chief executive officer. "The Bank continues to perform at a high level, as reflected in the metrics of return on equity, return on assets, and operating efficiency. Credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008. On the other hand, loan growth has been slower in the first six months of 2025 than in recent years due to reduced borrower demand which is driven by a perception by borrowers that (a) interest rates are high (and will decline) and (b) the outlook for the economy is more uncertain than normal. Rest assured that we will be well positioned to return to our more normal loan growth once borrower demand picks up."

"The Bank's high quality investment securities portfolio continues to perform well with small unrealized losses of 0.8% and the Bank continues to maintain high levels of liquidity with $964 million of on balance sheet cash and investments combined with nearly $1.7 billion in available borrowing capacity," said Brian Killeen, chief financial officer of River City Bank. "Operational efficiency remains a core competency for the Bank, as evidenced by our 36% efficiency ratio for the six months ended June 30, 2025."

Shareholders' equity for River City Bank on June 30, 2025 increased $25 million to $510 million when compared to $485 million as of December 31, 2024. The increase was driven primarily by the current year retained earnings and an increase in the value of the investment portfolio. The Bank's capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.4% as of June 30, 2025.

Additionally, Mr. Fleming announced that the Bank's board of directors has approved a cash dividend of $0.40 per common share to shareholders of record as of July 29, 2025, and payable on August 12, 2025.

ABOUT RIVER CITY BANK:

As a leading boutique commercial bank with assets over $5 billion, River City Bank is the largest, independent, locally owned and managed bank in the Sacramento region, with an office in San Francisco and a presence in Southern California. River City Bank offers a comprehensive suite of banking services with a tailored, concierge-like level of service, to redefine the banking experience. Please visit www.rivercitybank.com or call (916) 567-2600. Member FDIC. Equal Housing Lender.

Contact Information

Pamela Hansen
VP/Director of Marketing and Events
pamela.hansen@rivercitybank.com
7075484292

SOURCE: River City Bank

View the original press release on ACCESS Newswire

FAQ

What was River City Bank's (RCBC) net income for Q2 2025?

River City Bank reported net income of $15.4 million ($10.52 per diluted share) for Q2 2025, compared to $17.2 million ($11.66 per diluted share) in Q2 2024.

What is the amount and payment date of RCBC's latest dividend?

River City Bank declared a cash dividend of $0.40 per common share, payable on August 12, 2025 to shareholders of record as of July 29, 2025.

How much did River City Bank's shareholders' equity grow in 2025?

The bank's shareholders' equity increased by $25 million to reach $510 million as of June 30, 2025, compared to $485 million at December 31, 2024, marking a historic milestone above $500 million.

What is River City Bank's current loan portfolio quality?

The bank maintains excellent loan quality with nearly zero non-performing loans and an Allowance for Credit Losses for Loans at 2.33% of Gross Loans as of June 30, 2025.

How strong is RCBC's liquidity position as of Q2 2025?

The bank maintains strong liquidity with $964 million in on-balance sheet cash and investments, plus $1.7 billion in available borrowing capacity.

What was River City Bank's return on equity and assets for H1 2025?

For the first half of 2025, River City Bank achieved a return on equity of 11.1% and a return on assets of 1.04%.