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SACRAMENTO, Calif., Jan. 26, 2023 (GLOBE NEWSWIRE) -- River City Bank (the Bank) reported earnings for the fourth quarter of 2022 of $11.5 million, or $7.72 per share, compared to $9.8 million, or $6.63 per share in the fourth quarter of 2021. The Bank also reported its seventh consecutive year of record net income with $47.8 million or $32.22 per diluted share, for the year ending December 31, 2022; this was $3.3 million more than the $44.5 million, or $30.14 per diluted share, for the year ending December 31, 2021.
The improved net income versus the prior year was driven by the following factors:
Partially mitigating the above were the following factors:
"In addition to seven consecutive years of record net income, we are very pleased to report record net loan growth of $536 million for the year ending December 31, 2022, after excluding the $32 million reduction in PPP loans," said Steve Fleming, president and chief executive officer of River City Bank. "Our asset quality remains strong with virtually no delinquencies or non-performing loans; however, we remain cautious about the impact to the office segment of commercial real estate (approximately 20% of the Bank's commercial real estate loan portfolio) due to the reduction in demand as employers provide work-from-home opportunities."
"Operational efficiency remains a core competency for the Bank, as evidenced by our 28 percent efficiency ratio after excluding the swap MTM gain and the loss on sale of securities for the year ending December 31, 2022," said Anker Christensen, chief financial officer of River City Bank. "Though our total non-interest expense increased in 2022 over the prior year, our focus on high productivity and managing expenses continues to be evident by our continued low efficiency ratio."
Shareholders' equity for River City Bank on December 31, 2022, increased $45 million to $353 million, when compared to the $308 million as of December 31, 2021. The increase was driven by current year retained earnings, slightly offset by a $5.4 million net decrease in accumulated other comprehensive income as the increase in short- and medium-term interest rates resulted in unrealized losses in the Bank's investment securities portfolio which was partially offset by unrealized gains on certain interest rate swap contracts designated as cash flow hedges. The Bank's capital ratio remains well above the regulatory definition for being Well Capitalized, with a Tier 1 Leverage Ratio of 8.7% as of December 31, 2022.
ABOUT RIVER CITY BANK:
Named one of Sacramento Business Journal's "50 Fastest Growing Companies" for each of the past six years, River City Bank is the Sacramento region's premier business bank with assets of over $4.0 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, executive-level service and a long-term investment grade credit rating from Standard & Poor's, 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 offices 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:
Amber Holwell
VP - Director of Marketing
amber.holwell@rivercitybank.com
916-567-2600
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