Business
River City Bank Reports 2024 First Quarter Net Income of $18.7 Million and a Quarterly Cash Dividend
River City Bank Reports 2024 First Quarter Net Income of $18.7 Million and a Quarterly Cash Dividend.
About this update from River City Bank
[{"type":"text","content":"SACRAMENTO, CA / ACCESSWIRE / April 25, 2024 / River City Bank (the Bank) reported net income of $18.7 million, or $12.63 per diluted share, for the quarter ended March 31, 2024, which compares to $12.9 million, or $8.64 per diluted share, for the same period in 2023. The Bank's earnings for the quarter ended March 31, 2024 represented a healthy 17.5% return on equity capital and 1.47% return on assets. Significant items impacting quarterly net income for March 31, 2024 and 2023 include the following:RCB Blue RCB Blue square Higher loan balances - Average loan outstandings for the quarter ended March 31, 2024 were $494 million higher than the same period prior year, thereby increasing net interest income despite higher cost of funds.Increased cash and investment balances - Average cash balances grew by $533 million and average investments balances grew by $61 million, when compared to the same period in 2023. The increased balances, at higher yields, provided an $11.9 million increase in income from cash and investments versus the prior year quarter.Deposit growth - Average deposits grew by $1.05 billion compared to the same period a year earlier, supporting the Bank's loan growth while reducing higher cost borrowings and increasing liquid assets.The Bank recognized $4.3 million in mark-to-market gains on undesignated interest rate swaps for the quarter ended March 31, 2024 that benefitted from rising interest rates during the quarter. 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 provision for credit losses for loans in for the quarter ended March 31, 2024 was $4.0 million, which was $2.5 million greater than the $1.5 million in the same period in 2023. The increased provision for credit losses for loans reflects the growth in the Bank's loans as well as concern for continued deterioration in the office segment of the Bank's commercial real estate portfolio. During the quarter ended March 31, 2024, the Bank did not experience any actual credit losses and the Bank's Allowance for Credit Losses for L...