River City Bank Surges Ahead: A Record-Breaking Quarter and a Bright Future
River City Bank, one of the oldest and most respected banks in the industry, has just reported its third-quarter financial results for 2026. And what a quarter it has been! The bank's stock has gone public, marking an important milestone in its 53-year history.
As highlighted by Steve Fleming, President and Chief Executive Officer of River City Bank, the company's quarterly results reflect solid core operating performance with a quarter-over-quarter increase in net interest income from balance sheet growth and continued operating efficiency. This is a testament to the bank's focus on disciplined growth, strong credit performance, operating efficiency, and focus on superior long-term shareholder value creation.
The bank reported net income of $30.6 million, or $2.16 per share for the quarter. But what's even more impressive is that the company was able to deliver a return on average assets (ROAA) of 1.92% and a return on average equity (ROAE) of 21%. This is a clear indication of the bank's commitment to delivering superior service and value to its clients, communities, and shareholders.
One notable aspect of River City Bank's quarterly results is the $17 million pre-tax gain from changes in the fair value of undesignated interest rate swaps. While this may seem like a significant windfall, it's essential to note that the recognition of this mark-to-market gain is related to a portion of their interest rate swaps that do not qualify for hedge accounting treatment. This means that these gains can be both positive and negative, making them less indicative of core operating performance.
Excluding the after-tax impact of this gain, adjusted net income was $18.3 million, and adjusted earnings per share were $1.29 for the third quarter of 2026. Adjusted ROAA was 1.15%, and adjusted ROAE was 12.63% for the third quarter. This gives us a clearer picture of the bank's true operating performance.
Core pre-tax, pre-provision income, which also removes these mark-to-market gains and losses, was $29 million for the quarter, compared with $25 million in the prior quarter and $28 million in the prior year quarter. This is a clear indication that River City Bank has maintained its momentum and continues to deliver strong core operating performance.
The bank's decision to go public through an IPO on the Nasdaq Stock Exchange has opened up new opportunities for investors and shareholders alike. The company has outlined its strategy for disciplined growth, strong credit performance, operating efficiency, and focus on superior long-term shareholder value creation. This is a clear indication that River City Bank is committed to delivering long-term value to its stakeholders.
As the bank continues to navigate the ever-changing landscape of commercial banking, it's clear that River City Bank has emerged as a leader in its field. With a strong focus on core operating performance, disciplined growth, and commitment to superior shareholder value creation, this bank is poised for continued success."
