River City Bank Reports Strong Net Income of $17.2 Million for Q2 2024, Record Net Income of $35.9 Million Year to Date, Crossing the $5 Billion Asset Threshold

Rhea-AI Summary

River City Bank (RCBC) reported strong financial results for Q2 2024, with net income of $17.2 million, or $11.66 per diluted share, up from $14.4 million in Q2 2023. Year-to-date net income reached a record $35.9 million, representing a 16.6% return on equity and 1.41% return on assets. The bank's total assets surpassed $5 billion, marking a significant milestone. Key factors contributing to growth include:

- Higher loan balances, increasing net interest income by $5.0 million
- Increased cash and investment balances, providing $9.7 million more income
- Strong deposit growth of $946 million year-over-year
- Robust loan quality with virtually no delinquencies or non-performing loans
- Efficient operations, with a 26% efficiency ratio for H1 2024

The bank's board approved a cash dividend of $0.37 per common share, payable on Aug. 8, 2024.

Positive

• Net income increased to $17.2 million in Q2 2024, up from $14.4 million in Q2 2023
• Record year-to-date net income of $35.9 million, with 16.6% return on equity
• Total assets surpassed $5 billion milestone
• Average loan outstandings increased by $520 million year-over-year
• Average deposits grew by $946 million compared to the same period last year
• Book value per share rose to $310 from $261 year-over-year
• Efficiency ratio of 26% for H1 2024, indicating strong operational efficiency
• Robust loan quality with virtually no delinquencies or non-performing loans
• Allowance for Credit Losses for Loans at 2.60% of Gross Loans
• Shareholders' equity increased by $29 million to $447 million since December 31, 2023

Negative

• Potential impacts on office segment of commercial real estate loan portfolio due to reduced demand from work-from-home trends
• Small unrealized losses of 1.7% in the investment securities portfolio

SACRAMENTO, CA / ACCESSWIRE / July 17, 2024 / River City Bank (the Bank) reported net income of $17.2 million, or $11.66 per diluted share, for the quarter ended June 30, 2024, which compares favorably to the $14.4 million, or $9.65 per diluted share, for the same period in 2023. Net income was $35.9 million, or $24.29 per diluted share, for the six months ended June 30, 2024, which compares favorably to the $27.3 million, or $18.28 per diluted share, for the six months ended June 30, 2023. The Bank's earnings for the first six months ended June 30, 2024, represented a healthy 16.6% return on equity capital and 1.41% return on assets. The Bank's book value per share rose to $310 as of June 30, 2024, from $261 per share as of June 30, 2023.

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Significant items impacting quarterly net income for June 30, 2024, and the same period in 2023 include the following:

• Higher loan balances - Average loan outstandings in the current quarter were $520 million higher than the prior year quarter, helping to increase net interest income by $5.0 million over the same period in 2023 despite rising deposit costs.

• Increased cash and investment balances - Average cash balances grew by $331 million and average investments balances grew by $118 million, when compared to the same period in 2023. The increased balances, at higher yields, provided a $9.7 million increase in income from cash and investments versus the prior year quarter.

• Deposit growth - Average deposits grew by $946 million compared to the same period a year earlier, supporting the Bank's loan growth while reducing higher cost borrowings and increasing liquid assets.

• The provision for credit losses on loans for the current quarter of $3.0 million was lower than the $6.5 million that was recorded for the prior year quarter. The Bank continues to add provision for credit losses as the loan portfolio grows. During the quarter ended June 30, 2024, the Bank did not experience any actual credit losses and the Bank's Allowance for Credit Losses for Loans was a robust 2.60% of Gross Loans as of June 30, 2024.

The Bank crossed an important milestone in our history as we ended the quarter with over $5 billion in total assets. "Our customers continue to appreciate the value the Bank provides with over 50 years of consistently exceptional service as evidenced by our significant growth in total deposits from $3.6 billion at June 30, 2023, to $4.5 billion as of June 30, 2024," said Steve Fleming, president and chief executive officer. "The Bank's balance sheet remains highly liquid with $377 million in cash and $726 million in high-quality short duration investments (investment portfolio effective duration of only one year). At the same time, our loan quality remains pristine with virtually no delinquencies or non-performing loans. We believe we can continue to grow our commercial real estate loan portfolio as we focus on loans secured by multi-family, retail, and industrial properties, as well as expanding our geographic footprint to other western states outside of California. We will remain diligent with our monitoring of potential impacts to the office segment of our commercial real estate loan portfolio from the reduction in demand as employers continue to provide work-from-home opportunities for their employees."

"The Bank's high-quality investment securities portfolio continues to perform well with relatively small unrealized losses of 1.7 percent and there are no investment securities categorized as held-to-maturity," said Brian Killeen, chief financial officer of River City Bank. "Operational efficiency remains a core competency for the Bank, as evidenced by our 26 percent efficiency ratio for the six months ended June 30, 2024."

Shareholders' equity for River City Bank on June 30, 2024, increased $29 million to $447 million, when compared to the $418 million as of Dec. 31, 2023. The increase was driven by growth of the current year's retained earnings. The Bank's capital ratios remain well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 8.7% as of June 30, 2024.

Additionally, Steve Fleming announced that the Bank's board of directors has approved a cash dividend of $0.37 per common share to shareholders of record as of July 25, 2024, and payable on Aug. 8, 2024.

ABOUT RIVER CITY BANK:

Named one of Sacramento Business Journal's "50 Fastest Growing Companies" for each of the past seven years, River City Bank is the Sacramento region's premier business bank with assets of over $5 billion. River City Bank offers a comprehensive suite of banking services, including loans, deposits and cash management tools to the business, consumer, and commercial real estate sectors. With tailored, concierge-like level of service, River City Bank redefines the banking experience and every touch point that surrounds it. River City Bank is the largest, independent, locally owned and managed bank in the Sacramento region with an office in the San Francisco Bay Area and a presence in Southern California. For additional information, please visit www.rivercitybank.com or call (916) 567-2600. Member FDIC. Equal Housing Lender.

Contact Information

Pamela Hansen
VP/Director of Marketing and Events
pamela.hansen@rivercitybank.com
7075484292

Related Files

Q2 2024 earnings data

SOURCE: River City Bank

View the original press release on newswire.com.

FAQ

What was River City Bank's (RCBC) net income for Q2 2024?

River City Bank reported a net income of $17.2 million, or $11.66 per diluted share, for Q2 2024.

How much did River City Bank's (RCBC) deposits grow in Q2 2024 compared to the previous year?

Average deposits grew by $946 million compared to the same period a year earlier.

What was River City Bank's (RCBC) efficiency ratio for the first half of 2024?

River City Bank's efficiency ratio was 26% for the six months ended June 30, 2024.

What is the cash dividend announced by River City Bank (RCBC) for Q2 2024?

River City Bank announced a cash dividend of $0.37 per common share, payable on August 8, 2024.

What was River City Bank's (RCBC) book value per share as of June 30, 2024?

River City Bank's book value per share rose to $310 as of June 30, 2024, from $261 per share a year earlier.