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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
About this update from River City Bank
SACRAMENTO, 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 . Significant items impacting net income for the years ended December 31, 2025 and 2024 include the following: 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. 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. 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. 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 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. Approximately 14% of the Bank's interest rate swaps are free-standing as of December 31, 2025 , and 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 Bank recorded a $2.0 million provision for credit losses for 2025 compared to a $7.5 million provision of credit losses for the prior year. As of December 31, 2025 , the Bank had zero non-performing loans, virtually no delinquent loans (0.02% of total loans), and the Bank's Allowance for Credit Losses for Loans was 2.24% of gross loans. "Operating results were strong in 2025 despite net income being slightly lower in 2025 compared to 2024. Also, the Bank saw above-industry-average growth, ending the year with $5.8 billion in total assets. These results demonstrate the appreciation our customers have for more than 50 years of consistently exceptional service the Bank continues to deliver," said Steve Fleming , president and chief executive officer. "The Bank continues to perform at a high level, as reflected in the metrics of return on equity, return on assets, and operating efficiency. Credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008. The Bank continues to utilize interest rate swap derivatives to manage our interest rate risk. All our swaps have been executed to hedge our interest rate risk - none are for speculative purposes. As such, short-term mark-to-market gains and losses in the portfolio are not reflective of the long-term benefit to our balance sheet position." "Operational efficiency remains a core competency for the Bank, as evidenced by our 2025 efficiency ratio of 31%," said Brian Killeen , chief financial officer of River City Bank . "We view this operational efficiency as a competitive advantage that we have sustained for many years. The Bank's high quality investment securities portfolio continues to perform well with small unrealized losses of 0.4% and the Bank continues to maintain high levels of liquidity with $1.2 billion of cash and investments combined with $2.0 billion in available borrowing capacity." Shareholders' equity for River City Bank on December 31, 2025 increased $63 million to $548 million when compared to $485 million as of December 31, 2024 . The increase was driven primarily by the current year retained earnings and an increase in the value of the investment portfolio. The Bank's capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.4% and a Total Risk Based Capital Ratio of 14.0% as of December 31, 2025 . As previously announced, during December 2025 , the Bank completed a ten-for-one forward stock split of its common stock shares (effectuated as a stock dividend). The stock split was done to enhance liquidity and marketability of the Bank's common stock, which is in the best interest of shareholders. All per share and share count disclosures in this release have been updated to reflect the stock split in both the current and past periods disclosed. Additionally, Mr. Fleming announced that the Bank's board of directors has approved a cash dividend of $0.05 per common share (increased from $0.04 per common share) to shareholders of record as of February 10, 2026 , and payable on February 24, 2026 . ABOUT RIVER CITY BANK : As a leading boutique commercial bank with assets over $5 billion , River City Bank is the largest, independent, locally owned and managed bank in the Sacramento region, with an office in San Francisco and a presence in Southern California . River City Bank offers a comprehensive suite of banking services with a tailored, concierge-like level of service, to redefine the banking experience. Please visit http://www.rivercitybank.com or call (916) 567-2600. Member FDIC . Equal Housing Lender. RIVER CITY BANK INCOME STATEMENT (dollars in thousands except per share amounts) December 31, 2025 Quarter Ended Quarter Ended 4Q 2025 to 4Q 2024 Quarter Ended 4Q 2025 to 3Q 2025 December 31, 2025 December 31, 2024 % Variance September 30, 2025 % Variance Interest income $ 74,635 $ 69,890 6.8 % $ 71,751 4.0 % Interest expense 35,951 35,087 2.5 % 34,656 3.7 % Net interest income 38,684 34,803 11.2 % 37,095 4.3 % Provision for (reversal of) credit losses 2,753 2,520 9.2 % (644 ) (527.5 )% Net interest income after provision for (reversal of) credit losses 35,931 32,283 11.3 % 37,739 (4.8 )% Net impact of free-standing interest rate swaps 3,095 7,122 (56.5 )% (45 ) (6977.8 )% Non-interest income 983 1,095 (10.2 )% 937 4.9 % Non-interest expense 11,393 10,571 7.8 % 11,164 2.1 % Income before taxes 28,616 29,929 (4.4 )% 27,467 4.2 % Income tax expense 7,602 8,664 (12.3 )% 7,783 (2.3 )% Net income $ 21,014 $ 21,265 (1.2 )% $ 19,684 6.8 % Basic Earnings Per Share 1.45 1.45 0.0 % 1.36 6.6 % Diluted Earnings Per Share 1.45 1.45 0.0 % 1.36 6.6 % Year Ended Year Ended 2025 to 2024 December 31, 2025 December 31, 2024 % Variance Interest income $ 282,933 $ 279,136 1.4 % Interest expense 140,429 142,449 (1.4 )% Net interest income 142,504 136,687 4.3 % Provision for credit losses 1,985 7,539 (73.7 )% Net interest income after provision for credit losses 140,519 129,148 8.8 % Net impact of free-standing interest rate swaps (4,701 ) 9,476 (149.6 )% Non-interest income 3,752 5,122 (26.7 )% Non-interest expense 44,479 40,091 10.9 % Income before taxes 95,091 103,655 (8.3 )% Income tax expense 26,676 30,256 (11.8 )% Net income $ 68,415 $ 73,399 (6.8 )% Basic Earnings Per Share 4.69 4.99 (6.0 )% Diluted Earnings Per Share 4.69 4.99 (6.0 )% Year Ended Year Ended OPERATING RATIOS December 31, 2025 December 31, 2024 Return on average assets 1.25 % 1.42 % Return on average equity 13.31 % 16.34 % Net interest margin (TE) 2.62 % 2.66 % Efficiency ratio (TE) 31.42 % 26.50 % Average cost of funds 2.85 % 3.04 % RIVER CITY BANK BALANCE SHEET (dollars in thousands except per share amounts) December 31, 2025 December 31, 2025 December 31, 2024 Current Quarter to Prior Year End Variance September 30, 2025 Assets $ % Cash and due from financial institutions $ 477,471 $ 148,666 $ 328,805 221.2 % $ 339,406 Investment securities 690,533 701,040 (10,507 ) (1.5 )% 689,296 Loans by type: Commercial real estate - owner occupied 161,543 165,235 (3,692 ) (2.2 )% 160,216 Commercial real estate - non-owner occupied 3,982,797 3,672,024 310,773 8.5 % 3,849,474 Construction and land development 25,760 13,087 12,673 96.8 % 15,250 Residential real estate 192,840 199,737 (6,897 ) (3.5 )% 193,291 Commercial and industrial 183,590 158,999 24,591 15.5 % 170,377 Consumer 8,242 10,131 (1,889 ) (18.6 )% 9,636 Agricultural 73,331 55,044 18,287 33.2 % 39,614 Total gross loans 4,628,103 4,274,257 353,846 8.3 % 4,437,858 Less: Net deferred loan fees & hedged loan MTM (48,449 ) (106,100 ) 57,651 (54.3 )% (48,976 Less: Allowance for credit losses (103,799 ) (102,163 ) (1,636 ) 1.6 % (100,771 Net loans 4,475,855 4,065,994 409,861 10.1 % 4,288,111 Accrued interest receivable 23,208 23,390 (182 ) (0.8 )% 24,861 Premise and equipment, net 10,717 10,608 109 1.0 % 10,406 Deferred tax assets, net 26,966 26,568 398 1.5 % 25,370 Swap MTM accumulated adjustment 59,282 128,725 (69,443 ) (53.9 )% 58,939 Other assets 37,858 38,537 (679 ) (1.8 )% 38,515 Total assets $ 5,801,890 $ 5,143,528 $ 658,362 12.8 % $ 5,474,904 Liabilities and shareholders' equity Deposits: Noninterest-bearing demand deposits $ 932,804 $ 834,970 $ 97,834 11.7 % $ 883,675 Money market accounts 1,177,273 940,261 237,012 25.2 % 1,064,377 NOW accounts 2,185,987 1,731,010 454,977 26.3 % 2,002,239 Savings deposits 89,915 99,742 (9,827 ) (9.9 )% 92,738 Time deposits 762,350 848,546 (86,196 ) (10.2 )% 818,107 Total deposits 5,148,329 4,454,529 693,800 15.6 % 4,861,136 Accrued interest payable 5,152 4,925 227 4.6 % 5,484 Other borrowings 25,000 50,000 (25,000 ) (50.0 )% - Cash collateral - From derivative counterparties 59,090 130,050 (70,960 ) (54.6 )% 62,480 Other liabilities 15,828 19,284 (3,456 ) (17.9 )% 18,104 Total liabilities 5,253,399 4,658,788 594,611 12.8 % 4,947,204 Shareholders' equity 548,491 484,740 63,751 13.2 % 527,700 Total liabilities and shareholders' equity $ 5,801,890 $ 5,143,528 $ 658,362 12.8 % $ 5,474,904 December 31 , September 30 , June 30 March 31 , December 31 , CAPITAL RATIOS 2025 2025 2025 2025 2024 Tier 1 leverage ratio 9.4 % 9.5 % 9.4 % 9.3 % 9.1 % Common equity 1 capital ratio 12.8 % 12.6 % 12.5 % 12.4 % 12.3 % Tier 1 risked based capital ratio 12.8 % 12.6 % 12.5 % 12.4 % 12.3 % Total risked based capital ratio 14.0 % 13.9 % 13.7 % 13.6 % 13.5 % ASSET QUALITY RATIOS Delinquent loans/Total loans 0.02 % 0.00 % 0.00 % 0.01 % 0.15 % Allowance for credit losses/Total gross loans 2.24 % 2.27 % 2.33 % 2.36 % 2.39 % Allowance for credit losses/Non-performing loans NM NM NM NM NM Non-performing loans/Total gross loans 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Total YTD net charge-off ratio 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % High Low River City Bank Stock (4th Quarter 2025 Trading Range ) $ 50.00 $ 38.20 December 31, 2025 December 31, 2024 Book Value Per Share $ 38.43 $ 33.65 Common Shares 14,272,790 14,403,700 December 31, 2025 December 31, 2024 Fully Diluted Shares - Wtd Avg Shares Outstanding - QTD 14,507,246 14,647,180 Fully Diluted Shares - Wtd Avg Shares Outstanding - YTD 14,584,314 14,710,670 For information about River City Bank stock, please contact [email protected]. SOURCE: River City Bank View the original press release on ACCESS Newswire Copyright 2026 ACCESS Newswire. All Rights Reserved., source Press Releases