River City Bank Reports Strong First Quarter Financial Results for 2024

River City Bank announced a significant increase in their first quarter earnings for 2024, with a net income of $18.7 million, a notable rise from $12.9 million reported during the same period in 2023. This quarter's earnings translate to a return on equity of 17.5% and a return on assets of 1.47%.

The bank highlighted several factors contributing to this growth, including an increase in loan balances, which were up by $494 million compared to the first quarter of 2023, boosting net interest income despite higher funding costs. Furthermore, both cash and investment balances saw substantial growth, contributing to an $11.9 million increase in income from these sources.

River City Bank also reported significant growth in deposits, which rose by $1.05 billion, aiding in loan expansion and enhancing liquidity. The bank experienced gains of $4.3 million from mark-to-market on undesignated interest rate swaps, benefiting from rising interest rates. Additionally, the provision for credit losses was $4.0 million, reflecting increases due to loan growth and potential risks in the commercial real estate sector.

CEO Steve Fleming attributed the growth to ongoing exceptional service and strong customer relationships, demonstrated by substantial increases in deposits and robust loan quality. The bank remains focused on expanding its commercial real estate and geographic presence. CFO Brian Killeen highlighted the bank’s operational efficiency, with an impressive efficiency ratio of 24.4% for the quarter.

Finally, the bank announced a quarterly cash dividend of $0.37 per share, payable in May 2024, and shareholders’ equity stood at $435 million, benefiting from retained earnings and stable capital ratios.