- River City Bank reported a Q1 2025 net income of $12.3 million, a decrease from $18.7 million in Q1 2024.
- Average loan outstandings increased by $580 million year-over-year, while average deposits grew by $221 million.
- The bank declared a cash dividend of $0.40 per common share, payable on May 20, 2025.
River City Bank (RCBC, Financial) announced its financial results for the first quarter of 2025, reporting a net income of $12.3 million, or $8.39 per diluted share. This is a notable decrease from the $18.7 million, or $12.63 per diluted share, reported for the same period in 2024. The bank achieved a return on equity of 10.0% and a return on assets of 0.93%.
A significant aspect of River City Bank's performance was the increase in average loan outstandings, which grew by $580 million compared to the previous year. The loan yields, however, decreased by 0.24% to 5.38%. On the deposit front, average deposits saw an increase of $221 million year-over-year, supporting the bank's loan growth alongside reducing excess cash balances.
The bank's book value per share rose considerably to $345 as of March 31, 2025, from $299 per share a year earlier. This increase reflects a robust financial standing despite the reduction in net income. Moreover, River City Bank maintained strong credit quality, reporting zero non-performing loans and an Allowance for Credit Losses of 2.36% of gross loans.
Cost of funds decreased to 2.91%, a reduction of 0.19% compared to the previous year. The bank's efficiency ratio remained strong at 39%, signifying operational effectiveness.
River City Bank's board of directors has approved a quarterly cash dividend of $0.40 per common share, payable to shareholders of record as of May 6, 2025, with payment scheduled for May 20, 2025.
Steve Fleming, the president and CEO, emphasized that the decrease in earnings was primarily due to accounting for interest rate swaps within the bank's portfolio, rather than any operational shortcomings. The bank continues to prioritize credit quality and operational efficiency amid economic uncertainties.
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