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River City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend
River City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend.
About this update from River City Bank
[{"type":"text","content":"\r\n\r\n \r\n \r\n River City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend\r\n \r\n \r\n\r\n\r\nRiver City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend\r\n\r\n\r\n\r\n\r\n\r\nTHE 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.\r\n Significant items impacting quarterly net income for June 30, 2025 and 2024 include the following:\r\n \r\n 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.\r\n 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.\r\n 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 ...