River City Bank Reports Net Income of $68.4 Million for 2025, Net Income for the Fourth Quarter of $21.0 Million and an Increase in the Quarterly Cash Dividend

Rhea-AI Summary

River City Bank (RCBC) reported 2025 net income of $68.4 million ($4.69 diluted EPS) and Q4 2025 net income of $21.0 million ($1.45 diluted EPS). Total assets ended at $5.8 billion and book value per share rose to $38.43.

The bank completed a 10-for-1 forward stock split in December 2025 and the board increased the quarterly cash dividend to $0.05 per share, payable February 24, 2026 to holders of record February 10, 2026.

Positive

• Book value per share increased to $38.43 (+14.2% year-over-year)
• Provision for credit losses declined to $2.0 million from $7.5 million
• Zero non-performing loans and delinquency at 0.02% of total loans
• Completed 10-for-1 forward stock split to improve liquidity
• Quarterly cash dividend raised to $0.05 per share (payable Feb 24, 2026)

Negative

• Average investment securities and cash balances declined by $133 million in 2025
• Investment securities yield decreased to 4.08% from 4.76% in 2024
• Free-standing interest rate swaps produced a $4.7 million reduction to income in 2025

News Market Reaction – RCBC

+1.07%

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+1.07% News Effect

On the day this news was published, RCBC gained 1.07%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SACRAMENTO, CALIFORNIA / ACCESS Newswire / January 29, 2026 / River City Bank ("the Bank") reported net income of $68.4 million or $4.69 per diluted share for the year ended December 31, 2025, which compares to $73.4 million, or $4.99 per diluted share, for the year ended December 31, 2024. The Bank also reported net income of $21.0 million, or $1.45 per diluted share, for the quarter ended December 31, 2025, which compares to $21.3 million, or $1.45 per diluted share, for the same period in 2024. The Bank's earnings for the year ended December 31, 2025 resulted in a 13.31% return on average equity and a 1.25% return on average assets. The Bank's book value per share rose to $38.43 as of December 31, 2025 from $33.65 per share as of December 31, 2024.

Significant items impacting net income for the years ended December 31, 2025 and 2024 include the following:

• Loan growth - Average loans outstanding for the year ended December 31, 2025 were $446 million higher than the prior year, thereby increasing interest income from loans by $17.3 million despite an 18 basis point decrease in loan yields to 5.46% (including the impact of fair value hedges) compared to 5.64% in 2024.

• Decreased investment securities balances and yields - Average investment securities and cash balances declined by $133 million in 2025 while yields decreased from 4.76% in 2024 to 4.08% in 2025.

• Deposit growth - Average deposits grew by $301 million in 2025 compared to the prior year, supporting the Bank's loan growth. Cost of funds decreased for 2025 by 19 basis points to 2.85% from 3.04% in 2024. These two items led to a slight reduction in interest expense of $2.0 million for 2025, when compared to the prior year.

• The Bank recognized a $4.7 million reduction in income related to free-standing interest rate swaps during 2025 compared to a $9.5 million increase to income in the prior year. 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. Approximately 14% of the Bank's interest rate swaps are free-standing as of December 31, 2025, and 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 recorded a $2.0 million provision for credit losses for 2025 compared to a $7.5 million provision of credit losses for the prior year. As of December 31, 2025, the Bank had zero non-performing loans, virtually no delinquent loans (0.02% of total loans), and the Bank's Allowance for Credit Losses for Loans was 2.24% of gross loans.

"Operating results were strong in 2025 despite net income being slightly lower in 2025 compared to 2024. Also, the Bank saw above-industry-average growth, ending the year with $5.8 billion in total assets. These results demonstrate the appreciation our customers have for more than 50 years of consistently exceptional service the Bank continues to deliver," 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. The Bank continues to utilize interest rate swap derivatives to manage our interest rate risk. 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."

"Operational efficiency remains a core competency for the Bank, as evidenced by our 2025 efficiency ratio of 31%," said Brian Killeen, chief financial officer of River City Bank. "We view this operational efficiency as a competitive advantage that we have sustained for many years. The Bank's high quality investment securities portfolio continues to perform well with small unrealized losses of 0.4% and the Bank continues to maintain high levels of liquidity with $1.2 billion of cash and investments combined with $2.0 billion in available borrowing capacity."

Shareholders' equity for River City Bank on December 31, 2025 increased $63 million to $548 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% and a Total Risk Based Capital Ratio of 14.0% as of December 31, 2025.

As previously announced, during December 2025, the Bank completed a ten-for-one forward stock split of its common stock shares (effectuated as a stock dividend). The stock split was done to enhance liquidity and marketability of the Bank's common stock, which is in the best interest of shareholders. All per share and share count disclosures in this release have been updated to reflect the stock split in both the current and past periods disclosed.

Additionally, Mr. Fleming announced that the Bank's board of directors has approved a cash dividend of $0.05 per common share (increased from $0.04 per common share) to shareholders of record as of February 10, 2026, and payable on February 24, 2026.

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 http://www.rivercitybank.com or call (916) 567-2600. Member FDIC. Equal Housing Lender.

RIVER CITY BANK
INCOME STATEMENT
(dollars in thousands except per share amounts)
December 31, 2025

		Quarter Ended				Quarter Ended				4Q 2025 to 4Q 2024				Quarter Ended				4Q 2025 to 3Q 2025
		December 31, 2025				December 31, 2024				% Variance				September 30, 2025				% Variance
Interest income		$	74,635			$	69,890				6.8	%		$	71,751				4.0	%
Interest expense			35,951				35,087				2.5	%			34,656				3.7	%
Net interest income			38,684				34,803				11.2	%			37,095				4.3	%
Provision for (reversal of) credit losses			2,753				2,520				9.2	%			(644	)			(527.5	)%
Net interest income after provision for (reversal of) credit losses			35,931				32,283				11.3	%			37,739				(4.8	)%
Net impact of free-standing interest rate swaps			3,095				7,122				(56.5	)%			(45	)			(6977.8	)%
Non-interest income			983				1,095				(10.2	)%			937				4.9	%
Non-interest expense			11,393				10,571				7.8	%			11,164				2.1	%
Income before taxes			28,616				29,929				(4.4	)%			27,467				4.2	%
Income tax expense			7,602				8,664				(12.3	)%			7,783				(2.3	)%
Net income		$	21,014			$	21,265				(1.2	)%		$	19,684				6.8	%
Basic Earnings Per Share			1.45				1.45				0.0	%			1.36				6.6	%
Diluted Earnings Per Share			1.45				1.45				0.0	%			1.36				6.6	%

		Year Ended				Year Ended				2025 to 2024
		December 31, 2025				December 31, 2024				% Variance
Interest income		$	282,933			$	279,136				1.4	%
Interest expense			140,429				142,449				(1.4	)%
Net interest income			142,504				136,687				4.3	%
Provision for credit losses			1,985				7,539				(73.7	)%
Net interest income after provision for credit losses			140,519				129,148				8.8	%
Net impact of free-standing interest rate swaps			(4,701	)			9,476				(149.6	)%
Non-interest income			3,752				5,122				(26.7	)%
Non-interest expense			44,479				40,091				10.9	%
Income before taxes			95,091				103,655				(8.3	)%
Income tax expense			26,676				30,256				(11.8	)%
Net income		$	68,415			$	73,399				(6.8	)%
Basic Earnings Per Share			4.69				4.99				(6.0	)%
Diluted Earnings Per Share			4.69				4.99				(6.0	)%

		Year Ended				Year Ended
OPERATING RATIOS		December 31, 2025				December 31, 2024
Return on average assets			1.25	%			1.42	%
Return on average equity			13.31	%			16.34	%
Net interest margin (TE)			2.62	%			2.66	%
Efficiency ratio (TE)			31.42	%			26.50	%
Average cost of funds			2.85	%			3.04	%

RIVER CITY BANK
BALANCE SHEET
(dollars in thousands except per share amounts)
December 31, 2025

		December 31, 2025				December 31, 2024				Current Quarter to Prior Year End Variance								September 30, 2025
Assets										$				%
Cash and due from financial institutions		$	477,471			$	148,666			$	328,805				221.2	%		$	339,406
Investment securities			690,533				701,040				(10,507	)			(1.5	)%			689,296
Loans by type:
Commercial real estate - owner occupied			161,543				165,235				(3,692	)			(2.2	)%			160,216
Commercial real estate - non-owner occupied			3,982,797				3,672,024				310,773				8.5	%			3,849,474
Construction and land development			25,760				13,087				12,673				96.8	%			15,250
Residential real estate			192,840				199,737				(6,897	)			(3.5	)%			193,291
Commercial and industrial			183,590				158,999				24,591				15.5	%			170,377
Consumer			8,242				10,131				(1,889	)			(18.6	)%			9,636
Agricultural			73,331				55,044				18,287				33.2	%			39,614
Total gross loans			4,628,103				4,274,257				353,846				8.3	%			4,437,858
Less: Net deferred loan fees & hedged loan MTM			(48,449	)			(106,100	)			57,651				(54.3	)%			(48,976
Less: Allowance for credit losses			(103,799	)			(102,163	)			(1,636	)			1.6	%			(100,771
Net loans			4,475,855				4,065,994				409,861				10.1	%			4,288,111
Accrued interest receivable			23,208				23,390				(182	)			(0.8	)%			24,861
Premise and equipment, net			10,717				10,608				109				1.0	%			10,406
Deferred tax assets, net			26,966				26,568				398				1.5	%			25,370
Swap MTM accumulated adjustment			59,282				128,725				(69,443	)			(53.9	)%			58,939
Other assets			37,858				38,537				(679	)			(1.8	)%			38,515
Total assets		$	5,801,890			$	5,143,528			$	658,362				12.8	%		$	5,474,904
Liabilities and shareholders' equity
Deposits:
Noninterest-bearing demand deposits		$	932,804			$	834,970			$	97,834				11.7	%		$	883,675
Money market accounts			1,177,273				940,261				237,012				25.2	%			1,064,377
NOW accounts			2,185,987				1,731,010				454,977				26.3	%			2,002,239
Savings deposits			89,915				99,742				(9,827	)			(9.9	)%			92,738
Time deposits			762,350				848,546				(86,196	)			(10.2	)%			818,107
Total deposits			5,148,329				4,454,529				693,800				15.6	%			4,861,136
Accrued interest payable			5,152				4,925				227				4.6	%			5,484
Other borrowings			25,000				50,000				(25,000	)			(50.0	)%			-
Cash collateral - From derivative counterparties			59,090				130,050				(70,960	)			(54.6	)%			62,480
Other liabilities			15,828				19,284				(3,456	)			(17.9	)%			18,104
Total liabilities			5,253,399				4,658,788				594,611				12.8	%			4,947,204
Shareholders' equity			548,491				484,740				63,751				13.2	%			527,700
Total liabilities and shareholders' equity		$	5,801,890			$	5,143,528			$	658,362				12.8	%		$	5,474,904

		December 31,				September 30,				June 30				March 31,				December 31,
CAPITAL RATIOS		2025				2025				2025				2025				2024
Tier 1 leverage ratio			9.4	%			9.5	%			9.4	%			9.3	%			9.1	%
Common equity 1 capital ratio			12.8	%			12.6	%			12.5	%			12.4	%			12.3	%
Tier 1 risked based capital ratio			12.8	%			12.6	%			12.5	%			12.4	%			12.3	%
Total risked based capital ratio			14.0	%			13.9	%			13.7	%			13.6	%			13.5	%
ASSET QUALITY RATIOS
Delinquent loans/Total loans			0.02	%			0.00	%			0.00	%			0.01	%			0.15	%
Allowance for credit losses/Total gross loans			2.24	%			2.27	%			2.33	%			2.36	%			2.39	%
Allowance for credit losses/Non-performing loans		NM				NM				NM				NM				NM
Non-performing loans/Total gross loans			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Total YTD net charge-off ratio			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%

		High				Low
River City Bank Stock (4th Quarter 2025 Trading Range)		$	50.00			$	38.20

		December 31, 2025				December 31, 2024
Book Value Per Share		$	38.43			$	33.65
Common Shares			14,272,790				14,403,700

		December 31, 2025				December 31, 2024
Fully Diluted Shares - Wtd Avg Shares Outstanding - QTD			14,507,246				14,647,180
Fully Diluted Shares - Wtd Avg Shares Outstanding - YTD			14,584,314				14,710,670

For information about River City Bank stock, please contact IR@rivercitybank.com.

SOURCE: River City Bank

View the original press release on ACCESS Newswire

FAQ

What were River City Bank (RCBC) full-year 2025 earnings and EPS?

RCBC reported $68.4 million net income for 2025, equal to $4.69 per diluted share. According to the company, this compares to $73.4 million and $4.99 per diluted share in 2024, with 2025 return on average equity of 13.31%.

When did RCBC complete its stock split and what type was it?

RCBC completed a ten-for-one forward stock split in December 2025. According to the company, the split was effected as a stock dividend to enhance liquidity and all disclosed per-share figures were adjusted accordingly.

How much is the new RCBC quarterly cash dividend and when is it payable?

The board approved a cash dividend of $0.05 per common share, payable on February 24, 2026. According to the company, shareholders of record as of February 10, 2026 will receive the dividend.

What is RCBC's asset size and capital position as of December 31, 2025?

RCBC ended 2025 with $5.8 billion in total assets and shareholders' equity of $548 million. According to the company, Tier 1 leverage was 9.4% and total risk-based capital was 14.0%, well above well-capitalized thresholds.

How did credit quality and loan losses perform at RCBC in 2025?

Credit quality remained strong with zero non-performing loans and delinquency of 0.02% of loans. According to the company, the allowance for credit losses for loans was 2.24% of gross loans at year-end.