Business
River City Bank Reports 2025 First Quarter Net Income of $12.3 Million and a Quarterly Cash Dividend
River City Bank Reports 2025 First Quarter Net Income of $12.3 Million and a Quarterly Cash Dividend.
About this update from River City Bank
[{"type":"text","content":"SACRAMENTO, CALIFORNIA / ACCESS Newswire / April 23, 2025 / River City Bank (the Bank) reported net income of $12.3 million, or $8.39 per diluted share, for the quarter ended March 31, 2025, which compares to $18.7 million, or $12.63 per diluted share, for the same period in 2024. The Bank's earnings for the quarter ended March 31, 2025 resulted in a 10.0% return on equity capital and 0.93% return on assets. The Bank's book value per share rose to $345 as of March 31, 2025 from $299 per share as of March 31, 2024.Significant items impacting quarterly net income for March 31, 2025 and 2024 include the following:Higher loan balances - Average loan outstandings for the quarter ended March 31, 2025 were $580 million higher than the same period prior year, thereby increasing interest income from loans despite a 0.24% 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 grew by $221 million compared to the same period in the prior year, partially supporting the Bank's loan growth, with the remainder financed via reducing excess cash balances. Cost of funds decreased by 0.19% to 2.91% from the same period in 2024.The Bank recognized a $5.1 million reduction to income related to free-standing interest rate swaps during the current quarter compared to $6.5 million increase to income in the prior year quarter, or a variance of $11.6 million when comparing the two periods. The current quarter impact is made up of a mark-to-market loss of $6.4 million, partially offset by $1.3 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 provision for credit losses for the current quarter was a reversal of $0.1 million compared to an addition of $4.0 million for the prior year quarter. The Bank had zero non-performing loans as of March 31, 2025, and the Bank's Allowance for Credit Losses for Loans was 2.36% of Gross Loans as of March 31, 2025."The Bank continues to perfor...