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 IR@rivercitybank.com .
SOURCE:River City Bank
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