Business
River City Bank Reports 8th Consecutive Year With Record Net Income in 2023 and a Quarterly Cash Dividend
River City Bank Reports 8th Consecutive Year With Record Net Income in 2023 and a Quarterly Cash Dividend.
About this update from River City Bank
[{"type":"text","content":"SACRAMENTO, CA / ACCESSWIRE / January 25, 2024 / River City Bank (the Bank) reported its eighth consecutive year of record net income with $60.3 million or $40.49 per diluted share for the year ended December 31, 2023; this was $12.5 million more than the $47.8 million or $32.22 per diluted share for the year ended December 31, 2022. The Bank also reported net income of $16.8 million, or $11.28 per diluted share, for the quarter ended December 31, 2023, which compares favorably to the $11.5 million, or $7.72 per diluted share, for the same period in 2022. The Bank's earnings for the year ended December 31, 2023 represented a healthy 15.7% return on equity capital and 1.34% return on assets. The improved net income versus the prior year was driven by the following factors:Higher loan balances - Average loan outstandings in 2023 were $477 million higher than the prior year, thereby increasing net interest income.Increased net interest margin (NIM) - For 2023, NIM increased to 2.74% from 2.68% in the prior year. The Bank has seen a benefit in NIM as market rates have increased over these two years. Despite experiencing significantly higher deposit costs during 2023, the Bank had $19.1 million more net interest income than in 2022.The provision for credit losses in 2023 was $12.6 million, which was $5.8 million less than the $18.4 million in 2022. The provision for credit losses in 2023 reflects the growth in the Bank's loans this year and concern for continued deterioration in the office segment of the Bank's commercial real estate portfolio. During 2023, the Bank did not experience any actual credit losses and the Bank's Allowance for Credit Losses for Loans was a robust 2.61% as of December 31, 2023.The Bank recognized a $3.9 million loss in 2022 on the sale of $34 million of available-for-sale corporate bonds which were yielding only 0.95%. At the time of the sale, the Bank was able to re-invest in U.S. Treasuries and Agency securities at a significantly higher yield."With the Bank's founding in 1973, we celebrated 50 years of consistent and reliable service to our customers in 2023 and we are thankful for the goodwill that we have built with our loyal and expanding customer base," said Steve Fleming, president and chief executive officer. "Notwithstanding the turmoil in the banking industry that was caused by the...