River City Bank Reports Third Quarter 2026 Results and Announces a Quarterly Cash Dividend

Adjusted quarterly earnings per share fell year over year despite higher reported profits boosted by swap valuation gains.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SACRAMENTO, Calif.--(BUSINESS WIRE)-- River City Bank (Nasdaq: RCBC) ("the Bank") reported net income of $30.6 million or $2.16 per share for the quarter ended September 30, 2026, which compares to $19.7 million, or $1.36 per share, for the same period in 2025. Net income was $68.2 million or $4.75 per share for the nine months ended September 30, 2026, which compares to $47.4 million, or $3.24 per share, for the nine months ended September 30, 2025. The Bank’s earnings for the quarter ended September 30, 2026 resulted in a 21.06% return on average equity and a 1.92% return on average assets. The Bank’s book value per share rose 14% to $42.32 as of September 30, 2026 from $37.04 per share as of September 30, 2025.

In August 2026, the Bank successfully completed its initial public offering (“IPO”) and its shares began trading on the Nasdaq Capital Market under the RCBC ticker symbol. The secondary offering consisted solely of existing shares held by two of the Bank's long-time shareholders associated with the family of the Bank's founder, Jon Kelly, and no new shares were issued by the Bank. The IPO was a major milestone in the Bank's history, increased the Bank's visibility within the public capital markets, and provided liquidity for shareholders, while establishing a publicly traded market value for its common stock.

Third Quarter Highlights

Performance and operating highlights for the Bank for the periods noted below included the following:

		For the Three Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025
		($ in thousands, except per share data)
Return on average assets ("ROAA")			1.92	%			1.28	%			1.43	%
Adjusted ROAA (1)			1.15	%			1.14	%			1.51	%
Return on average equity ("ROAE")			21.06	%			13.92	%			15.06	%
Adjusted ROAE (1)			12.63	%			12.31	%			15.92	%
Efficiency ratio			19.43	%			29.44	%			29.39	%
Core pre-tax, pre-provision ("PTPP") income (1)		$	29,294			$	25,433			$	28,391
Net income		$	30,609			$	19,616			$	19,684
Earnings per share		$	2.16			$	1.37			$	1.36
Adjusted EPS (1)		$	1.29			$	1.21			$	1.43
Book value per share		$	42.32			$	40.58			$	37.04
Weighted average shares outstanding			14,190,307				14,341,273				14,517,644
Common shares outstanding at end of period			13,962,925				13,994,875				14,247,800
(1) See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures.

• Net income increased to $30.6 million, or $2.16 per share, for the third quarter of 2026, as compared to $19.6 million, or $1.37 per share, for the preceding quarter and $19.7 million, or $1.36 per share, for the same period in the prior year. This significant increase in the current quarter was primarily due to a $17.1 million mark-to-market (“MTM”) gain related to certain interest rate swaps. The MTM gain was due to the increase in U.S. Treasury rates during the third quarter of 2026. Management believes that core PTPP income⁽¹⁾, which also removes the MTM gains and losses is a better metric to evaluate the Bank's core earnings. Core PTPP income increased 15% to $29.3 million for the third quarter of 2026 as compared to $25.4 million for the trailing quarter and increased 3% from $28.4 million for the same quarter in the prior year.
• Average loans increased by $108 million (2% growth) compared to the trailing quarter and by $363 million (8% growth) compared to the same period in the prior year, reflecting continued organic loan growth.
• Average deposits for the third quarter of 2026 increased by $158 million (3% growth) compared to the trailing quarter and by $766 million (16% growth) compared to the same period in the prior year, supporting the Bank’s loan growth and liquidity position.
• As of September 30, 2026, the Bank had zero non-performing loans, virtually no delinquent loans (0.00% of total loans), no loans more than 90 days past due and still accruing interest, no other real estate owned (“OREO”), and the Bank’s Allowance for Credit Losses for Loans (“ACL”) was 2.30% of total loans. Due to the loan growth, the Bank recorded a $3.7 million provision for credit losses (loans and unfunded commitments) for the three months ended September 30, 2026, compared to $1.5 million provision in the trailing quarter and a $644,000 reversal of provision for the same period in the prior year. The ACL to total loans ratio was unchanged at September 30, 2026 from the prior quarter end at 2.30%.
• The Bank continued to maintain an exceptional efficiency ratio by industry standards at 19.4% for the third quarter of 2026, compared to 29.4% in both the trailing quarter and the third quarter of 2025. Even excluding the $17.1 million MTM gain on undesignated interest rate swaps, the Bank's adjusted efficiency ratio⁽¹⁾ was 27.7% compared to 31.9% in the trailing quarter and 28.2% for the same period in the prior year.
• Net interest margin (“NIM”) – The Bank’s NIM was 2.39% and 2.34% for the three months ended September 30, 2026 and June 30, 2026. The modest increase in the current quarter was due to slightly higher yields on interest-earning assets because of the increase in U.S. Treasury rates and a 0.03% reduction in cost of funds.

(1) See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures.

“This quarter was quite exceptional in the Bank’s 53-year history due to our IPO and listing on the Nasdaq. We believe that becoming a public company will enable us to further enhance shareholder value, which has always been management's and the Board's “North Star”. The Bank also delivered solid core operating results in the third quarter of 2026, as evidenced by the operating metrics and continued compounding of book value per share,” said Steve Fleming, President and Chief Executive Officer. “In addition, the Bank grew loans by 3.7% over the prior quarter-end and credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008.”

Mr. Fleming also noted, “The Bank recognized a $17.1 million MTM gain related to its undesignated interest rate swaps. The Bank systematically enters interest rate swaps to mitigate interest rate risk and all swaps are entered into for economic and risk management purposes (regardless of accounting treatment). Approximately 16% of the Bank’s interest rate swaps are undesignated as of September 30, 2026, and until these interest rate swaps are designated as a hedge to specific assets or liabilities, the MTM fluctuations (positive and negative) will flow through the income statement.” Given the hedging purpose of the swaps, Bank management does not view the MTM gains and losses to be indicative of the Bank's core operating performance. As such, for the purposes of disclosure in this earnings release, the Bank has shown several important metrics which remove this non-core component of net income such as earnings per share, return on average equity, return on average asset, and operating efficiency.

Brian Killeen, Chief Financial Officer said, “The Bank continues to perform at a high level, as reflected in the following key metrics: return on average equity, return on average assets, and operating efficiency. We view operational efficiency as a competitive advantage, contributing to sustained profitability and growth in shareholder value. Despite the increase in U.S. Treasury rates during the current quarter, the Bank’s high quality, short duration investment securities portfolio continued to perform well with a relatively low unrealized loss position of 1.5% as of September 30, 2026.”

Summary Results

Three months ended September 30, 2026, as compared to three months ended September 30, 2025

		For the Three Months Ended								Variance
		September 30, 2026				September 30, 2025				$				%
		($ in thousands, except per share data)
Interest income		$	77,045			$	71,751			$	5,294			7.4	%
Interest expense			39,199				34,656				4,543			13.1	%
Net interest income			37,846				37,095				751			2.0	%
Provision for (reversal of) credit losses			3,718				(644	)			4,362			NM
Net interest income after provision for (reversal of) credit losses			34,128				37,739				(3,611	)		(9.6	)%
Net changes in the fair value of derivatives			17,149				(1,568	)			18,717			NM
Noninterest income, excluding net changes in the fair value of derivatives			2,651				2,460				191			7.8	%
Noninterest expense			11,203				11,164				39			0.3	%
Income before taxes			42,725				27,467				15,258			55.6	%
Provision for income taxes			12,116				7,783				4,333			55.7	%
Net income		$	30,609			$	19,684			$	10,925			55.5	%
Earnings per share		$	2.16			$	1.36			$	0.80			58.8	%
ROAA			1.92	%			1.43	%			0.49	%		34.3	%
ROAE			21.06	%			15.06	%			6.00	%		39.8	%
Efficiency ratio			19.43	%			29.39	%			(9.96	)%		(33.9	)%

The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.7 million for the three months ended September 30, 2025. The primary items of note are as follows:

• Interest income increased by $5.3 million as average interest-earning assets increased by $853 million, due to the Bank's strong deposit growth.
• Interest expense increased by $4.5 million due to $785 million growth in the average balance of interest-bearing deposits, partially offset by a 0.23% decrease in the cost of interest-bearing deposits as compared to the same quarter in the prior year.
• Provision for credit losses increased by $4.4 million due to loan growth and adjustments associated with qualitative factors in the ACL calculation.
• The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $18.7 million to a $17.1 million MTM gain compared to $1.6 million MTM loss in the same quarter of the prior year. This was caused by the significant increase in U.S. Treasury rates during the current quarter.
• Noninterest income, excluding net changes in the fair value of derivatives, remained relatively stable compared to the prior year quarter. During the third quarter of 2026, the Bank recognized a $553,000 gain related to sale of Visa shares received through Visa’s B Shares tender offer, which was largely offset by lower net amounts received on undesignated derivatives, as the average Secured Overnight Financing Rate (“SOFR”) declined period over period.

Three months ended September 30, 2026, as compared to three months ended June 30, 2026

		For the Three Months Ended								Variance
		September 30, 2026				June 30, 2026				$				%
		($ in thousands, except per share data)
Interest income		$	77,045			$	73,544			$	3,501			4.8	%
Interest expense			39,199				38,007				1,192			3.1	%
Net interest income			37,846				35,537				2,309			6.5	%
Provision for credit losses			3,718				1,518				2,200			144.9	%
Net interest income after provision for credit losses			34,128				34,019				109			0.3	%
Net changes in the fair value of derivatives			17,149				3,178				13,971			439.6	%
Noninterest income, excluding net changes in the fair value of derivatives			2,651				1,833				818			44.6	%
Noninterest expense			11,203				11,937				(734	)		(6.1	)%
Income before taxes			42,725				27,093				15,632			57.7	%
Provision for income taxes			12,116				7,477				4,639			62.0	%
Net income		$	30,609			$	19,616			$	10,993			56.0	%
				​				​				​			​
Earnings per share		$	2.16			$	1.37				0.79			57.7	%
ROAA			1.92	%			1.28	%			0.64	%		50.0	%
ROAE			21.06	%			13.92	%			7.14	%		51.3	%
Efficiency ratio			19.43	%			29.44	%			(10.01	)%		(34.0	)%

The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.6 million for the three months ended June 30, 2026. The primary items of note are as follows:

• Interest income increased by $3.5 million, primarily due to a $108 million increase in average balances of loans and a $93 million increase in average balances of cash and investment securities.
• Interest expense increased by $1.2 million due to $76 million growth in average interest-bearing liabilities balances, as compared to the prior quarter.
• Provision for credit losses increased by $2.2 million reflecting increased loan origination during the current quarter.
• Noninterest expense decreased by $734,000, primarily reflecting lower stock compensation expense and a decline in professional service expenses following the completion of the Bank's IPO in August 2026 as compared to the prior quarter.

Nine months ended September 30, 2026, as compared to nine months ended September 30, 2025

		For the Nine Months Ended								Variance
		September 30, 2026				September 30, 2025				$				%
		($ in thousands, except per share data)
Interest income		$	222,551			$	208,299			$	14,252			6.8	%
Interest expense			114,152				104,478				9,674			9.3	%
Net interest income			108,399				103,821				4,578			4.4	%
Provision for (reversal of) credit losses			6,748				(768	)			7,516			NM
Net interest income after provision for (reversal of) credit losses			101,651				104,589				(2,938	)		(2.8	)%
Net changes in the fair value of derivatives			22,056				(12,013	)			34,069			NM
Noninterest income, excluding net changes in the fair value of derivatives			6,512				6,986				(474	)		(6.8	)%
Noninterest expense			35,585				33,087				2,498			7.5	%
Income before taxes			94,634				66,475				28,159			42.4	%
Provision for income taxes			26,463				19,074				7,389			38.7	%
Net income		$	68,171			$	47,401			$	20,770			43.8	%
Earnings per share		$	4.75			$	3.24			$	1.51			46.6	%
ROAA			1.48	%			1.18	%			0.30	%		25.4	%
ROAE			16.10	%			12.53	%			3.57	%		28.5	%
Efficiency ratio			25.98	%			33.49	%			(7.51	)%		(22.4	)%

The Bank’s net income was $68.2 million for the nine months ended September 30, 2026, as compared to $47.4 million for the nine months ended September 30, 2025. The primary items of note are as follows:

• Interest income increased by $14.3 million, primarily due to a $329 million increase in average balances of loans and a $436 million increase in average cash balances and investment securities, which was caused by the strong growth in average deposits.
• Interest expense increased by $9.7 million due to $730 million of growth in the average balance of interest-bearing liabilities, partially offset by a 0.14% decrease in the cost of funds between the two periods.
• The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $34.1 million to a $22.1 million MTM gain compared to $12.0 million MTM loss in the same period of the prior year. This fluctuation was due to changes in the U.S. Treasury rate environment over the two periods.
• Noninterest expense increased by $2.5 million over the prior year period, primarily due to a $1.3 million increase in personnel expense as the Bank continues to build out its team to support growth. The increase also reflects higher professional service costs associated with the Bank’s recently completed IPO.

Balance Sheet Summary

Year over Year Balance Sheet Change

		As of September 30,								Variance
		2026				2025				$				%
		($ in thousands)
Total assets		$	6,381,595			$	5,474,904			$	906,691				16.6	%
Total loans			4,849,645				4,437,858				411,787				9.3	%
Total investments			1,021,630				689,296				332,334				48.2	%
Total deposits			5,613,774				4,861,136				752,638				15.5	%
Total shareholders' equity			590,870				527,700				63,170				12.0	%

Loans outstanding increased by $412 million or 9.3% as of September 30, 2026 compared to September 30, 2025. The growth was primarily in Commercial Real Estate loans that grew $385 million from September 30, 2025.

Deposit balances increased by $753 million from September 30, 2025 to September 30, 2026, due primarily to significant growth in Commercial and Clean Energy client relationships.

Shareholders’ equity increased $63 million to $591 million as of September 30, 2026 when compared to $528 million as of September 30, 2025. The increase was driven primarily by growth in retained earnings, as the Bank continues to maintain a relatively low dividend payout ratio, albeit partly mitigated by $15.5 million in share repurchases over the period.

Trailing Quarter Balance Sheet Change

		As of								Variance
		September 30, 2026				June 30, 2026				$				%
		($ in thousands)
Total assets		$	6,381,595			$	6,042,514			$	339,081				5.6	%
Total loans			4,849,645				4,678,130				171,515				3.7	%
Total investments			1,021,630				1,003,538				18,092				1.8	%
Total deposits			5,613,774				5,374,670				239,104				4.4	%
Total shareholders' equity			590,870				567,881				22,989				4.0	%

Total loans increased by $172 million during the quarter ended September 30, 2026. Loan originations totaled approximately $238 million for the quarter ended September 30, 2026.

Deposit balances increased by $239 million during the quarter ended September 30, 2026, reflecting continued growth in deposit levels within the Bank's existing client base. As of September 30, 2026, the Bank had no wholesale funding.

Shareholders’ equity increased $23 million to $591 million as of September 30, 2026 when compared to $568 million as of June 30, 2026. The increase was driven primarily by the current quarter net income, less $1.6 million of share repurchases during the quarter ended September 30, 2026. The Bank’s capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.39% and a Total Risk-Based Capital Ratio of 14.61% as of September 30, 2026.

Asset Quality Ratios

		September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025
ACL/Total loans		2.30	%		2.30	%		2.29	%		2.24	%		2.27	%
Delinquent loans/Total loans		0.00	%		0.03	%		0.02	%		0.02	%		0.00	%
Non-performing loans/Total loans		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Year-to-date net charge-off ratio		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%

As of September 30, 2026, the Bank had no OREO or non-performing loans and there were no charge-offs during the quarter. The Bank’s allowance for credit losses was $112 million as of September 30, 2026, as compared to $104 million as of December 31, 2025.

Provision for Income Taxes

The Bank’s effective tax rate was 28.0% and 28.7% for the nine months ended September 30, 2026 and 2025, respectively. Differences between the Bank’s effective tax rate and applicable federal and state (primarily California) blended statutory rate of approximately 29.4% are primarily due to the proportion of excess benefit from restricted share instruments vesting, the benefits of tax credits, and changes in the Bank’s apportionment of taxable income in certain states.

Dividend Announcement

The Bank’s board of directors has approved a cash dividend of $0.05 per common share to shareholders of record as of November 3, 2026, and payable on November 17, 2026.

ABOUT RIVER CITY BANK:

With more than five decades of operating history, River City Bank has built a reputation for relationship-focused service, disciplined growth, and specialized expertise across commercial banking, commercial real estate, clean energy, public sector banking, and other key industries. River City Bank is the largest independent bank in the Sacramento region, with an office in San Francisco and a focus on the Western United States. The Bank remains committed to delivering concierge banking solutions and exceptional client service. Please visit http://www.rivercitybank.com. Member FDIC. Equal Housing Lender.

FORWARD-LOOKING STATEMENTS

The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

The financial results reported in this document are preliminary and unaudited.

Condensed Financial Data (Unaudited)

Income Statement Data

		For the Three Months Ended											For the Nine Months Ended
		September 30, 2026			June 30, 2026				September 30, 2025				September 30, 2026			September 30, 2025
		($ in thousands)
Interest income		$	77,045		$	73,544			$	71,751			$	222,551		$	208,299
Interest expense			39,199			38,007				34,656				114,152			104,478
Net interest income			37,846			35,537				37,095				108,399			103,821
Provision for (reversal of) credit losses			3,718			1,518				(644	)			6,748			(768	)
Net interest income after provision for (reversal of) credit losses			34,128			34,019				37,739				101,651			104,589
Service charges on deposit accounts			205			215				201				623			588
Check card revenue			164			164				172				486			526
Net payments received on undesignated derivatives			962			909				1,523				2,806			4,217
Net changes in the fair value of derivatives			17,149			3,178				(1,568	)			22,056			(12,013	)
Real estate lease income			158			162				74				482			204
FHLB dividends			390			187				327				1,337			981
Gain (loss) on investment securities, net			553			(42	)			(17	)			70			(109	)
Other noninterest income			219			238				180				708			579
Total noninterest income			19,800			5,011				892				28,568			(5,027	)
Salaries and employee benefits			7,259			7,646				7,155				23,165			21,826
Occupancy and equipment			614			594				636				1,848			1,862
Data processing			975			983				920				2,879			2,714
Federal deposit insurance			725			720				600				2,120			1,850
Other noninterest expense			1,630			1,994				1,853				5,573			4,835
Total noninterest expense			11,203			11,937				11,164				35,585			33,087
Income before taxes			42,725			27,093				27,467				94,634			66,475
Provision for income taxes			12,116			7,477				7,783				26,463			19,074
Net income		$	30,609		$	19,616			$	19,684			$	68,171		$	47,401

Net Interest Income and Net Interest Margin

		For the Three Months Ended
		September 30, 2026											June 30, 2026											September 30, 2025
		Average Balance				Interest & Fees				Yield/ Rate			Average Balance				Interest & Fees				Yield/ Rate			Average Balance				Interest & Fees				Yield/ Rate
Interest-earning assets		(tax-equivalent basis, $ in thousands)
Interest-earning deposits in banks		$	503,504			$	4,812			3.79	%		$	512,960			$	4,747			3.71	%		$	347,324			$	3,692			4.22	%
Investment securities (TE)			1,039,178				9,853			3.76	%			936,585				8,723			3.74	%			704,617				7,129			4.01	%
Loans			4,751,505				62,384			5.21	%			4,643,971				60,082			5.19	%			4,388,772				60,939			5.51	%
Total interest-earning assets			6,294,187				77,049			4.86	%			6,093,516				73,552			4.84	%			5,440,713				71,760			5.23	%
Total noninterest-earning assets			28,460					​			​			33,786					​			​			19,058					​			​
Total average assets		$	6,322,647					​			​		$	6,127,302					​			​			5,459,771					​			​
				​				​			​				​				​			​				​				​			​
Interest-bearing liabilities				​				​			​				​				​			​				​				​			​
Interest-bearing transaction accounts			2,503,785				21,072			3.34	%			2,460,332				20,460			3.34	%			1,903,561				16,992			3.54	%
Money market accounts			1,424,742				11,612			3.23	%			1,438,964				11,586			3.23	%			991,303				8,135			3.26	%
Savings deposits			83,877				105			0.50	%			85,313				103			0.48	%			94,127				120			0.51	%
Time deposits			626,991				5,903			3.74	%			603,903				5,572			3.70	%			865,494				9,146			4.19	%
Interest-bearing deposits			4,639,395				38,692			3.31	%			4,588,512				37,721			3.30	%			3,854,485				34,393			3.54	%
Borrowings			—				—			0.00	%			6				—			0.00	%			272				3			4.38	%
Other interest-bearing liabilities			105,870				507			1.90	%			81,171				286			1.41	%			68,691				260			1.50	%
Total interest-bearing liabilities		$	4,745,265			$	39,199			3.28	%		$	4,669,689			$	38,007			3.26	%		$	3,923,448			$	34,656			3.50	%
Noninterest-bearing liabilities				​				​			​				​				​			​				​				​			​
Noninterest-bearing deposits			976,345					​			​			869,041					​			​			994,758					​			​
Other noninterest-bearing liabilities			24,486					​			​			23,466					​			​			23,027					​			​
Total noninterest-bearing liabilities			1,000,831					​			​			892,507					​			​			1,017,785					​			​
Total average liabilities			5,746,096					​			​			5,562,196					​			​			4,941,233					​			​
Shareholders' equity			576,551					​			​			565,106					​			​			518,538					​			​
Total liabilities and shareholders' equity		$	6,322,647					​			​		$	6,127,302					​			​		$	5,459,771					​			​
				​				​			​				​				​			​				​				​			​
Net interest income				​		$	37,850				​				​		$	35,545				​				​		$	37,104				​
				​				​			​				​				​			​				​				​			​
NIM				​				​		2.39	%				​				​		2.34	%				​				​		2.71	%
				​				​			​				​				​			​				​				​			​
Cost of funds		$	5,721,610			$	39,199			2.72	%		$	5,538,730			$	38,007			2.75	%		$	4,918,206			$	34,656			2.80	%
Cost of deposits		$	5,615,740			$	38,692			2.73	%		$	5,457,553			$	37,721			2.77	%		$	4,849,243			$	34,393			2.81	%

		For the Nine Months Ended
		September 30, 2026											September 30, 2025
		Average Balance				Interest & Fees				Yield/ Rate			Average Balance				Interest & Fees				Yield/ Rate
		(tax-equivalent basis, $ in thousands)
Interest-earning assets				​				​			​				​				​			​
Interest-earning deposits in banks		$	561,727			$	15,576			3.71	%		$	317,690			$	10,024			4.22	%
Investment securities (TE)			890,388				25,183			3.78	%			697,985				21,533			4.12	%
Loans			4,663,615				181,809			5.21	%			4,334,188				176,763			5.45	%
Total interest-earning assets			6,115,730				222,568			4.87	%			5,349,863				208,320			5.21	%
Total noninterest-earning assets			28,096					​			​			20,827					​			​
Total average assets		$	6,143,826					​			​		$	5,370,690					​			​
				​				​			​				​				​			​
Interest-bearing liabilities				​				​			​				​				​			​
Interest-bearing transaction accounts			2,429,350				60,883			3.35	%			1,878,704				50,591			3.60	%
Money market accounts			1,398,282				33,974			3.25	%			974,703				24,173			3.32	%
Savings deposits			85,952				315			0.49	%			97,138				364			0.50	%
Time deposits			640,820				18,038			3.76	%			863,253				27,755			4.30	%
Interest-bearing deposits			4,554,404				113,210			3.32	%			3,813,798				102,883			3.61	%
Borrowings			94				3			4.27	%			1,745				59			4.52	%
Other interest-bearing liabilities			82,851				939			1.52	%			91,815				1,536			2.24	%
Total interest-bearing liabilities		$	4,637,349			$	114,152			3.29	%		$	3,907,358			$	104,478			3.57	%
Noninterest-bearing liabilities				​				​			​				​				​			​
Noninterest-bearing deposits			916,135					​			​			933,214					​			​
Other noninterest-bearing liabilities			24,071					​			​			24,170					​			​
Total noninterest-bearing liabilities			940,206					​			​			957,384					​			​
Total average liabilities			5,577,555					​			​			4,864,742					​			​
Shareholders' Equity			566,271					​			​			505,948					​			​
Total liabilities and shareholders' equity		$	6,143,826					​			​		$	5,370,690					​			​
				​				​			​				​				​			​
Net interest income				​		$	108,416				​				​		$	103,842				​
				​				​			​				​				​			​
NIM				​				​		2.37	%				​				​		2.60	%
				​				​			​				​				​			​
Cost of funds		$	5,553,484			$	114,152			2.75	%		$	4,840,572			$	104,478			2.89	%
Cost of deposits		$	5,470,539			$	113,210			2.77	%		$	4,747,012			$	102,883			2.90	%

Balance Sheet Data

Assets		September 30, 2026				June 30, 2026				September 30, 2025
		($ in thousands)
Cash and due from financial institutions		$	485,870			$	353,369			$	339,406
Investment securities			1,021,630				1,003,538				689,296
Loans by type:
Commercial real estate - owner occupied			160,628				161,637				160,216
Commercial real estate - non-owner occupied			4,234,190				4,060,364				3,849,474
Construction and land development			56,162				41,763				15,250
Residential real estate			190,158				191,404				193,291
Commercial and industrial			135,176				154,676				170,377
Consumer			9,644				9,089				9,636
Agricultural			63,687				59,197				39,614
Total gross loans			4,849,645				4,678,130				4,437,858
Less: Net deferred loan fees & hedged loan MTM			(118,184	)			(69,389	)			(48,976	)
Less: Allowance for credit losses - loans			(111,749	)			(107,826	)			(100,771	)
Net loans			4,619,712				4,500,915				4,288,111
Accrued interest receivable			25,197				22,815				24,861
Premise and equipment, net			10,534				10,712				10,406
Deferred tax assets, net			31,291				28,791				25,370
Derivatives			149,283				84,278				58,939
Other assets			38,078				38,096				38,515
Total assets		$	6,381,595			$	6,042,514			$	5,474,904
Liabilities and shareholders' equity
Deposits:
Noninterest-bearing demand deposits		$	901,373			$	825,271			$	883,675
Money market accounts			1,531,100				1,416,955				1,064,377
Interest-bearing transaction accounts			2,488,396				2,428,866				2,002,239
Savings deposits			84,811				84,606				92,738
Time deposits			608,094				618,972				818,107
Total deposits			5,613,774				5,374,670				4,861,136
Accrued interest payable			3,582				2,952				5,484
Borrowings			—				—				—
Cash collateral held related to derivatives			149,590				81,970				62,480
Other liabilities			23,779				15,041				18,104
Total liabilities			5,790,725				5,474,633				4,947,204
Shareholders' equity			590,870				567,881				527,700
Total liabilities and shareholders' equity		$	6,381,595			$	6,042,514			$	5,474,904

Capital Ratios

		September 30,				June 30,				March 31,				December 31,				September 30,
		2026				2026				2026				2025				2025
Tier 1 leverage ratio			9.39	%			9.22	%			9.35	%			9.40	%			9.54	%
Common equity tier 1 capital ratio			13.34	%			13.18	%			13.14	%			12.75	%			12.58	%
Tier 1 risk-based capital ratio			13.34	%			13.18	%			13.14	%			12.75	%			12.58	%
Total risk-based capital ratio			14.61	%			14.44	%			14.41	%			14.02	%			13.85	%

Non-GAAP Reconciliation

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial measures. Management has presented these non-GAAP financial measures in this press release because management believes that they provide useful and comparative information to assess trends in the Bank's core operations. However, the non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of the non-GAAP financial measures, see the table below:

Core Pre-Tax, Pre-Provision Income

This figure is defined as net interest income, plus noninterest income, less the change in the fair value of derivatives, less noninterest expense. The purpose of this non-GAAP financial measure is to remove the market volatility that can be included in the change in the fair value of derivatives that do not have fair value hedge accounting treatment (undesignated), which is a component of noninterest income. We hedge our interest rate risk through interest rate derivatives and a portion of the gain/loss on derivatives is reflected in our income statement. In addition, this measure is shown before the provision for credit losses and income tax expense. We believe that this non-GAAP financial measure provides a clearer picture of our operational earnings.

		For the Three Months Ended												For the Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Net interest income		$	37,846			$	35,537			$	37,095			$	108,399			$	103,821
				​				​				​				​				​
Noninterest income			19,800				5,011				892				28,568				(5,027	)
Non-core item:				​				​				​				​				​
Less change in the fair value of derivatives			17,149				3,178				(1,568	)			22,056				(12,013	)
Core noninterest income			2,651				1,833				2,460				6,512				6,986
				​				​				​				​				​
Less noninterest expense			11,203				11,937				11,164				35,585				33,087
				​				​				​				​				​
Core pre-tax, pre-provision income		$	29,294			$	25,433			$	28,391			$	79,326			$	77,720

Adjusted Efficiency Ratio

This non-GAAP financial measure is defined as noninterest expense divided by the sum of net interest income and core noninterest income, where core noninterest income excludes the impact of changes in the fair value of undesignated interest rate swaps.

		For the Three Months Ended												For the Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Total noninterest expense (A)		$	11,203			$	11,937			$	11,164			$	35,585			$	33,087
				​				​				​				​				​
Net interest income (B)			37,846				35,537				37,095				108,399				103,821
				​				​				​				​				​
Noninterest income (C)		$	19,800			$	5,011			$	892			$	28,568			$	(5,027	)
Less change in the fair value of derivatives			17,149				3,178				(1,568	)			22,056				(12,013	)
Core noninterest income (D)		$	2,651			$	1,833			$	2,460			$	6,512			$	6,986
				​				​				​				​				​
Efficiency Ratio (A)/(B +C)			19.43	%			29.44	%			29.39	%			25.98	%			33.49	%
Adjusted Efficiency Ratio (A)/(B+D)			27.66	%			31.94	%			28.22	%			30.97	%			29.86	%

Adjusted EPS

This figure is defined as adjusted net income divided by weighted average shares outstanding. Adjusted net income is calculated as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps.

		For the Three Months Ended												For the Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Net income		$	30,609			$	19,616			$	19,684			$	68,171			$	47,401
				​				​				​				​				​
Non-core item:				​				​				​				​				​
Change in the fair value of derivatives			17,149				3,178				(1,568	)			22,056				(12,013	)
Tax Effect			(4,887	)			(906	)			447				(6,286	)			3,424
Change in the fair value of derivatives, net			12,262				2,272				(1,121	)			15,770				(8,589	)
				​				​				​				​				​
Adjusted net income			18,347				17,344				20,805				52,401				55,990
				​				​				​				​				​
Weighted average shares outstanding			14,190,307				14,341,273				14,517,644				14,348,514				14,610,286
				​				​				​				​				​
Adjusted EPS		$	1.29			$	1.21			$	1.43			$	3.65			$	3.83

Adjusted ROAA and ROAE

These figures are defined as adjusted net income divided by average assets and adjusted net income divided by average shareholders' equity. Adjusted net income is calculated as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps.

		For the Three Months Ended												For the Nine Months Ended
		September 30, 2026				June 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
		($ in thousands)
Adjusted net income			18,347				17,344				20,805				52,401				55,990
				​				​				​				​				​
Adjusted ROAA			1.15	%			1.14	%			1.51	%			1.14	%			1.39	%
Adjusted ROAE			12.63	%			12.31	%			15.92	%			12.37	%			14.80	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261023651618/en/

Investor Contact:
Brian Killeen
EVP - Chief Financial Officer
ir@rivercitybank.com
(916) 567-2702

Media Contact:
Pamela Hansen
VP, Director of Marketing and Events
marketingrcb@rivercitybank.com
(916) 567-2622

Source: River City Bank

Key Terms

mark-to-market financial

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

sofr financial

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

initial public offering financial

An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.