Business
River City Bank Reports 9th Consecutive Year with Record Net Income in 2024 and an Increase in the Quarterly Cash Dividend
River City Bank Reports 9th Consecutive Year with Record Net Income in 2024 and an Increase in the Quarterly Cash Dividend.
About this update from River City Bank
[{"type":"text","content":"SACRAMENTO, CALIFORNIA / ACCESS Newswire / January 30, 2025 / River City Bank reported its 9th consecutive year of record net income with $73.4 million or $49.90 per diluted share for the year ended December 31, 2024; this was $13.1 million more than the $60.3 million or $40.49 per diluted share for the year ended December 31, 2023. The Bank also reported net income of $21.3 million, or $14.52 per diluted share, for the quarter ended December 31, 2024, which compares favorably to the $16.8 million, or $11.28 per diluted share, for the same period in 2023. The Bank's earnings for the year ended December 31, 2024 represented a healthy 16.3% return on equity capital and 1.42% return on assets. The Bank's book value per share rose to $336 as of December 31, 2024 from $287 per share as of December 31, 2023.The improved net income versus the prior year was driven by the following factors:Higher loan balances - Average loan outstandings in 2024 were $515 million higher than the prior year and yields on loans increased by 0.39% (including the impact of the fair value hedges), driving the increase in loan interest income.Deposit growth - Average deposits grew by $734 million compared to the prior year, supporting growth in the Bank's loans and liquid assets.Increased investment securities balances and yields - Average investment securities and cash balances grew by $210 million while yields increased from 3.45% in 2023 to 4.76% in 2024.Stable net interest margin (NIM) - Despite higher deposits costs in 2024, NIM decreased by only 0.08% to 2.66% in 2024 from 2.74% in the prior year. The stable NIM, supported by the Bank's hedging program, combined with the significant loan growth, allowed the Bank to grow net interest income by $15.8 million in 2024.The provision for credit losses was $7.5 million in 2024, which was $5.1 million less than the $12.6 million provision expense in 2023. The Bank did not experience any credit losses during the year and the Bank's Allowance for Credit Losses for Loans was 2.39% of Gross Loans as of December 31, 2024."The 2024 results and continued growth of the Bank to over $5.1 billion in total assets as of December 31, 2024, demonstrates the appreciation our customers have for the over 50 years of consistently exceptional service the Bank continues to deliver," said Steve Fleming, president and chie...