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River City Bank Reports Net Income of $68.4 Million for 2025, Net Income for the Fourth Quarter of $21.0 Million and an Increase in the Quarterly Cash Dividend
River City Bank Reports Net Income of $68.4 Million for 2025, Net Income for the Fourth Quarter of $21.0 Million and an Increase in the 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 Net Income of $68.4 Million for 2025, Net Income for the Fourth Quarter of $21.0 Million and an Increase in the Quarterly Cash Dividend\r\n \r\n \r\n\r\n\r\nRiver City Bank Reports Net Income of $68.4 Million for 2025, Net Income for the Fourth Quarter of $21.0 Million and an Increase in the Quarterly Cash Dividend\r\n\r\n\r\n\r\n\r\n\r\nSACRAMENTO, CALIFORNIA / ACCESS Newswire / January 29, 2026 / River City Bank (\"the Bank\") reported net income of $68.4 million or $4.69 per diluted share for the year ended December 31, 2025, which compares to $73.4 million, or $4.99 per diluted share, for the year ended December 31, 2024. The Bank also reported net income of $21.0 million, or $1.45 per diluted share, for the quarter ended December 31, 2025, which compares to $21.3 million, or $1.45 per diluted share, for the same period in 2024. The Bank's earnings for the year ended December 31, 2025 resulted in a 13.31% return on average equity and a 1.25% return on average assets. The Bank's book value per share rose to $38.43 as of December 31, 2025 from $33.65 per share as of December 31, 2024.\r\n Significant items impacting net income for the years ended December 31, 2025 and 2024 include the following:\r\n \r\n \r\n Loan growth - Average loans outstanding for the year ended December 31, 2025 were $446 million higher than the prior year, thereby increasing interest income from loans by $17.3 million despite an 18 basis point decrease in loan yields to 5.46% (including the impact of fair value hedges) compared to 5.64% in 2024.\r\n \r\n \r\n \r\n \r\n Decreased investment securities balances and yields - Average investment securities and cash balances declined by $133 million in 2025 while yields decreased from 4.76% in 2024 to 4.08% in 2025.\r\n \r\n \r\n \r\n \r\n Deposit growth - Average deposits grew by $301 million in 2025 compared to the prior year, supporting the Bank's loan growth. Cost of funds decreased for 2025 by 19 basis points to 2.85% from 3.04% in 2024. These two items led to a slight reduction in interest expense of $2.0 million for 2025, when compared to the prior year.\r\n \r\n \r\n \r\n \r\n The Bank recognized a $4.7 million reduction in income related to free-standing interest rate swaps during 2025 compared to a $9.5 million increase to income in the prior year. These sw...