Earnings release
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River City Bank Reports Third Quarter 2026 Results and Announces a Quarterly Cash Dividend October 23, 2026 SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 23, 2026-- River City Bank (Nasdaq: RCBC) ("the Bank") reported net income of $30.6 million or $2.16 per share for the quarter ended September 30, 2026, which compares to $19.7 million, or $1.36 per share, for the same period in 2025. Net income was $68.2 million or $4.75 per share for the nine months ended September 30, 2026, which compares to $47.4 million, or $3.24 per share, for the nine months ended September 30, 2025. The Bank’s earnings for the quarter ended September 30, 2026 resulted in a 21.06% return on average equity and a 1.92% return on average assets. The Bank’s book value per share rose 14% to $42.32 as of September 30, 2026 from $37.04 per share as of September 30, 2025. In August 2026, the Bank successfully completed its initial public offering (“IPO”) and its shares began trading on the Nasdaq Capital Market under the RCBC ticker symbol. The secondary offering consisted solely of existing shares held by two of the Bank's long-time shareholders associated with the family of the Bank's founder, Jon Kelly, and no new shares were issued by the Bank. The IPO was a major milestone in the Bank's history, increased the Bank's visibility within the public capital markets, and provided liquidity for shareholders, while establishing a publicly traded market value for its common stock. Third Quarter Highlights Performance and operating highlights for the Bank for the periods noted below included the following: For the Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 ($ in thousands, except per share data) Return on average assets ("ROAA") 1.92% 1.28% 1.43% Adjusted ROAA (1) 1.15% 1.14% 1.51% Return on average equity ("ROAE") 21.06% 13.92% 15.06% Adjusted ROAE (1) 12.63% 12.31% 15.92% Efficiency ratio 19.43% 29.44% 29.39% Core pre-tax, pre-provision ("PTPP") income (1) $ 29,294 $ 25,433 $ 28,391 Net income $ 30,609 $ 19,616 $ 19,684 Earnings per share $ 2.16 $ 1.37 $ 1.36 Adjusted EPS (1) $ 1.29 $ 1.21 $ 1.43 Book value per share $ 42.32 $ 40.58 $ 37.04 Weighted average shares outstanding 14,190,307 14,341,273 14,517,644 Common shares outstanding at end of period 13,962,925 13,994,875 14,247,800 (1) See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures. Net income increased to $30.6 million, or $2.16 per share, for the third quarter of 2026, as compared to $19.6 million, or $1.37 per share, for the preceding quarter and $19.7 million, or $1.36 per share, for the same period in the prior year. This significant increase in the current quarter was primarily due to a $17.1 million mark-to-market (“MTM”) gain related to certain interest rate swaps. The MTM gain was due to the increase in U.S. Treasury rates during the third quarter of 2026. Management believes that core PTPP income (1), which also removes the MTM gains and losses is a better metric to evaluate the Bank's core earnings. Core PTPP income increased 15% to $29.3 million for the third quarter of 2026 as compared to $25.4 million for the trailing quarter and increased 3% from $28.4 million for the same quarter in the prior year. Average loans increased by $108 million (2% growth) compared to the trailing quarter and by $363 million (8% growth) compared to the same period in the prior year, reflecting continued organic loan growth. Average deposits for the third quarter of 2026 increased by $158 million (3% growth) compared to the trailing quarter and by $766 million (16% growth) compared to the same period in the prior year, supporting the Bank’s loan growth and liquidity position. As of September 30, 2026, the Bank had zero non-performing loans, virtually no delinquent loans (0.00% of total loans), no loans more than 90 days past due and still accruing interest, no other real estate owned (“OREO”), and the Bank’s Allowance for Credit Losses for Loans (“ACL”) was 2.30% of total loans. Due to the loan growth, the Bank recorded a $3.7 million provision for credit losses (loans and unfunded commitments) for the three months ended September 30, 2026, compared to $1.5 million provision in the trailing quarter and a $644,000 reversal of provision for the same period in the
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prior year. The ACL to total loans ratio was unchanged at September 30, 2026 from the prior quarter end at 2.30%. The Bank continued to maintain an exceptional efficiency ratio by industry standards at 19.4% for the third quarter of 2026, compared to 29.4% in both the trailing quarter and the third quarter of 2025. Even excluding the $17.1 million MTM gain on undesignated interest rate swaps, the Bank's adjusted efficiency ratio (1) was 27.7% compared to 31.9% in the trailing quarter and 28.2% for the same period in the prior year. Net interest margin (“NIM”) – The Bank’s NIM was 2.39% and 2.34% for the three months ended September 30, 2026 and June 30, 2026. The modest increase in the current quarter was due to slightly higher yields on interest-earning assets because of the increase in U.S. Treasury rates and a 0.03% reduction in cost of funds. (1) See the section entitled “Non-GAAP Reconciliation” for a reconciliation of these non-GAAP financial measures. “This quarter was quite exceptional in the Bank’s 53-year history due to our IPO and listing on the Nasdaq. We believe that becoming a public company will enable us to further enhance shareholder value, which has always been management's and the Board's “North Star”. The Bank also delivered solid core operating results in the third quarter of 2026, as evidenced by the operating metrics and continued compounding of book value per share,” said Steve Fleming, President and Chief Executive Officer. “In addition, the Bank grew loans by 3.7% over the prior quarter-end and credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008.” Mr. Fleming also noted, “The Bank recognized a $17.1 million MTM gain related to its undesignated interest rate swaps. The Bank systematically enters interest rate swaps to mitigate interest rate risk and all swaps are entered into for economic and risk management purposes (regardless of accounting treatment). Approximately 16% of the Bank’s interest rate swaps are undesignated as of September 30, 2026, and until these interest rate swaps are designated as a hedge to specific assets or liabilities, the MTM fluctuations (positive and negative) will flow through the income statement.” Given the hedging purpose of the swaps, Bank management does not view the MTM gains and losses to be indicative of the Bank's core operating performance. As such, for the purposes of disclosure in this earnings release, the Bank has shown several important metrics which remove this non-core component of net income such as earnings per share, return on average equity, return on average asset, and operating efficiency. Brian Killeen, Chief Financial Officer said, “The Bank continues to perform at a high level, as reflected in the following key metrics: return on average equity, return on average assets, and operating efficiency. We view operational efficiency as a competitive advantage, contributing to sustained profitability and growth in shareholder value. Despite the increase in U.S. Treasury rates during the current quarter, the Bank’s high quality, short duration investment securities portfolio continued to perform well with a relatively low unrealized loss position of 1.5% as of September 30, 2026.” Summary Results Three months ended September 30, 2026, as compared to three months ended September 30, 2025 For the Three Months Ended Variance September 30, 2026 September 30, 2025 $ % ($ in thousands, except per share data) Interest income $ 77,045 $ 71,751 $ 5,294 7.4% Interest expense 39,199 34,656 4,543 13.1% Net interest income 37,846 37,095 751 2.0% Provision for (reversal of) credit losses 3,718 (644) 4,362 NM Net interest income after provision for (reversal of) credit losses 34,128 37,739 (3,611) (9.6)% Net changes in the fair value of derivatives 17,149 (1,568) 18,717 NM Noninterest income, excluding net changes in the fair value of derivatives 2,651 2,460 191 7.8% Noninterest expense 11,203 11,164 39 0.3% Income before taxes 42,725 27,467 15,258 55.6% Provision for income taxes 12,116 7,783 4,333 55.7% Net income $ 30,609 $ 19,684 $ 10,925 55.5% Earnings per share $ 2.16 $ 1.36 $ 0.80 58.8% ROAA 1.92% 1.43% 0.49% 34.3% ROAE 21.06% 15.06% 6.00% 39.8% Efficiency ratio 19.43% 29.39% (9.96)% (33.9)% The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.7 million for the three months ended September 30, 2025. The primary items of note are as follows:
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Interest income increased by $5.3 million as average interest-earning assets increased by $853 million, due to the Bank's strong deposit growth. Interest expense increased by $4.5 million due to $785 million growth in the average balance of interest-bearing deposits, partially offset by a 0.23% decrease in the cost of interest-bearing deposits as compared to the same quarter in the prior year. Provision for credit losses increased by $4.4 million due to loan growth and adjustments associated with qualitative factors in the ACL calculation. The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $18.7 million to a $17.1 million MTM gain compared to $1.6 million MTM loss in the same quarter of the prior year. This was caused by the significant increase in U.S. Treasury rates during the current quarter. Noninterest income, excluding net changes in the fair value of derivatives, remained relatively stable compared to the prior year quarter. During the third quarter of 2026, the Bank recognized a $553,000 gain related to sale of Visa shares received through Visa’s B Shares tender offer, which was largely offset by lower net amounts received on undesignated derivatives, as the average Secured Overnight Financing Rate (“SOFR”) declined period over period. Three months ended September 30, 2026, as compared to three months ended June 30, 2026 For the Three Months Ended Variance September 30, 2026 June 30, 2026 $ % ($ in thousands, except per share data) Interest income $ 77,045 $ 73,544 $ 3,501 4.8% Interest expense 39,199 38,007 1,192 3.1% Net interest income 37,846 35,537 2,309 6.5% Provision for credit losses 3,718 1,518 2,200 144.9% Net interest income after provision for credit losses 34,128 34,019 109 0.3% Net changes in the fair value of derivatives 17,149 3,178 13,971 439.6% Noninterest income, excluding net changes in the fair value of derivatives 2,651 1,833 818 44.6% Noninterest expense 11,203 11,937 (734) (6.1)% Income before taxes 42,725 27,093 15,632 57.7% Provision for income taxes 12,116 7,477 4,639 62.0% Net income $ 30,609 $ 19,616 $ 10,993 56.0% Earnings per share $ 2.16 $ 1.37 0.79 57.7% ROAA 1.92% 1.28% 0.64% 50.0% ROAE 21.06% 13.92% 7.14% 51.3% Efficiency ratio 19.43% 29.44% (10.01)% (34.0)% The Bank’s net income was $30.6 million for the three months ended September 30, 2026, as compared to $19.6 million for the three months ended June 30, 2026. The primary items of note are as follows: Interest income increased by $3.5 million, primarily due to a $108 million increase in average balances of loans and a $93 million increase in average balances of cash and investment securities. Interest expense increased by $1.2 million due to $76 million growth in average interest-bearing liabilities balances, as compared to the prior quarter. Provision for credit losses increased by $2.2 million reflecting increased loan origination during the current quarter. Noninterest expense decreased by $734,000, primarily reflecting lower stock compensation expense and a decline in professional service expenses following the completion of the Bank's IPO in August 2026 as compared to the prior quarter. Nine months ended September 30, 2026, as compared to nine months ended September 30, 2025 For the Nine Months Ended Variance September 30, 2026 September 30, 2025 $ % ($ in thousands, except per share data) Interest income $ 222,551 $ 208,299 $ 14,252 6.8% Interest expense 114,152 104,478 9,674 9.3% Net interest income 108,399 103,821 4,578 4.4% Provision for (reversal of) credit losses 6,748 (768) 7,516 NM
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Net interest income after provision for (reversal of) credit losses 101,651 104,589 (2,938) (2.8)% Net changes in the fair value of derivatives 22,056 (12,013) 34,069 NM Noninterest income, excluding net changes in the fair value of derivatives 6,512 6,986 (474) (6.8)% Noninterest expense 35,585 33,087 2,498 7.5% Income before taxes 94,634 66,475 28,159 42.4% Provision for income taxes 26,463 19,074 7,389 38.7% Net income $ 68,171 $ 47,401 $ 20,770 43.8% Earnings per share $ 4.75 $ 3.24 $ 1.51 46.6% ROAA 1.48% 1.18% 0.30% 25.4% ROAE 16.10% 12.53% 3.57% 28.5% Efficiency ratio 25.98% 33.49% (7.51)% (22.4)% The Bank’s net income was $68.2 million for the nine months ended September 30, 2026, as compared to $47.4 million for the nine months ended September 30, 2025. The primary items of note are as follows: Interest income increased by $14.3 million, primarily due to a $329 million increase in average balances of loans and a $436 million increase in average cash balances and investment securities, which was caused by the strong growth in average deposits. Interest expense increased by $9.7 million due to $730 million of growth in the average balance of interest-bearing liabilities, partially offset by a 0.14% decrease in the cost of funds between the two periods. The MTM adjustment associated with interest rate swaps yet to be designated into a hedge relationship increased by $34.1 million to a $22.1 million MTM gain compared to $12.0 million MTM loss in the same period of the prior year. This fluctuation was due to changes in the U.S. Treasury rate environment over the two periods. Noninterest expense increased by $2.5 million over the prior year period, primarily due to a $1.3 million increase in personnel expense as the Bank continues to build out its team to support growth. The increase also reflects higher professional service costs associated with the Bank’s recently completed IPO. Balance Sheet Summary Year over Year Balance Sheet Change As of September 30, Variance 2026 2025 $ % ($ in thousands) Total assets $ 6,381,595 $ 5,474,904 $ 906,691 16.6% Total loans 4,849,645 4,437,858 411,787 9.3% Total investments 1,021,630 689,296 332,334 48.2% Total deposits 5,613,774 4,861,136 752,638 15.5% Total shareholders' equity 590,870 527,700 63,170 12.0% Loans outstanding increased by $412 million or 9.3% as of September 30, 2026 compared to September 30, 2025. The growth was primarily in Commercial Real Estate loans that grew $385 million from September 30, 2025. Deposit balances increased by $753 million from September 30, 2025 to September 30, 2026, due primarily to significant growth in Commercial and Clean Energy client relationships. Shareholders’ equity increased $63 million to $591 million as of September 30, 2026 when compared to $528 million as of September 30, 2025. The increase was driven primarily by growth in retained earnings, as the Bank continues to maintain a relatively low dividend payout ratio, albeit partly mitigated by $15.5 million in share repurchases over the period. Trailing Quarter Balance Sheet Change As of Variance September 30, 2026 June 30, 2026 $ % ($ in thousands) Total assets $ 6,381,595 $ 6,042,514 $ 339,081 5.6% Total loans 4,849,645 4,678,130 171,515 3.7% Total investments 1,021,630 1,003,538 18,092 1.8% Total deposits 5,613,774 5,374,670 239,104 4.4%
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Total shareholders' equity 590,870 567,881 22,989 4.0% Total loans increased by $172 million during the quarter ended September 30, 2026. Loan originations totaled approximately $238 million for the quarter ended September 30, 2026. Deposit balances increased by $239 million during the quarter ended September 30, 2026, reflecting continued growth in deposit levels within the Bank's existing client base. As of September 30, 2026, the Bank had no wholesale funding. Shareholders’ equity increased $23 million to $591 million as of September 30, 2026 when compared to $568 million as of June 30, 2026. The increase was driven primarily by the current quarter net income, less $1.6 million of share repurchases during the quarter ended September 30, 2026. The Bank’s capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.39% and a Total Risk-Based Capital Ratio of 14.61% as of September 30, 2026. Asset Quality Ratios September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 ACL/Total loans 2.30% 2.30% 2.29% 2.24% 2.27% Delinquent loans/Total loans 0.00% 0.03% 0.02% 0.02% 0.00% Non-performing loans/Total loans 0.00% 0.00% 0.00% 0.00% 0.00% Year-to-date net charge-off ratio 0.00% 0.00% 0.00% 0.00% 0.00% As of September 30, 2026, the Bank had no OREO or non-performing loans and there were no charge-offs during the quarter. The Bank’s allowance for credit losses was $112 million as of September 30, 2026, as compared to $104 million as of December 31, 2025. Provision for Income Taxes The Bank’s effective tax rate was 28.0% and 28.7% for the nine months ended September 30, 2026 and 2025, respectively. Differences between the Bank’s effective tax rate and applicable federal and state (primarily California) blended statutory rate of approximately 29.4% are primarily due to the proportion of excess benefit from restricted share instruments vesting, the benefits of tax credits, and changes in the Bank’s apportionment of taxable income in certain states. Dividend Announcement The Bank’s board of directors has approved a cash dividend of $0.05 per common share to shareholders of record as of November 3, 2026, and payable on November 17, 2026. ABOUT RIVER CITY BANK: With more than five decades of operating history, River City Bank has built a reputation for relationship-focused service, disciplined growth, and specialized expertise across commercial banking, commercial real estate, clean energy, public sector banking, and other key industries. River City Bank is the largest independent bank in the Sacramento region, with an office in San Francisco and a focus on the Western United States. The Bank remains committed to delivering concierge banking solutions and exceptional client service. Please visit http://www.rivercitybank.com. Member FDIC. Equal Housing Lender. FORWARD-LOOKING STATEMENTS The statements contained herein that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on us. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “goal,” “target,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward- looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. The financial results reported in this document are preliminary and unaudited. Condensed Financial Data (Unaudited) Income Statement Data
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For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Interest income $ 77,045 $ 73,544 $ 71,751 $ 222,551 $ 208,299 Interest expense 39,199 38,007 34,656 114,152 104,478 Net interest income 37,846 35,537 37,095 108,399 103,821 Provision for (reversal of) credit losses 3,718 1,518 (644) 6,748 (768) Net interest income after provision for (reversal of) credit losses 34,128 34,019 37,739 101,651 104,589 Service charges on deposit accounts 205 215 201 623 588 Check card revenue 164 164 172 486 526 Net payments received on undesignated derivatives 962 909 1,523 2,806 4,217 Net changes in the fair value of derivatives 17,149 3,178 (1,568) 22,056 (12,013) Real estate lease income 158 162 74 482 204 FHLB dividends 390 187 327 1,337 981 Gain (loss) on investment securities, net 553 (42) (17) 70 (109) Other noninterest income 219 238 180 708 579 Total noninterest income 19,800 5,011 892 28,568 (5,027) Salaries and employee benefits 7,259 7,646 7,155 23,165 21,826 Occupancy and equipment 614 594 636 1,848 1,862 Data processing 975 983 920 2,879 2,714 Federal deposit insurance 725 720 600 2,120 1,850 Other noninterest expense 1,630 1,994 1,853 5,573 4,835 Total noninterest expense 11,203 11,937 11,164 35,585 33,087 Income before taxes 42,725 27,093 27,467 94,634 66,475 Provision for income taxes 12,116 7,477 7,783 26,463 19,074 Net income $ 30,609 $ 19,616 $ 19,684 $ 68,171 $ 47,401 Net Interest Income and Net Interest Margin For the Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Average Balance Interest & Fees Yield/ Rate Average Balance Interest & Fees Yield/ Rate Average Balance Interest & Fees Yield/ Rate Interest-earning assets (tax-equivalent basis, $ in thousands) Interest-earning deposits in banks $ 503,504 $ 4,812 3.79% $ 512,960 $ 4,747 3.71% $ 347,324 $ 3,692 4.22% Investment securities (TE) 1,039,178 9,853 3.76% 936,585 8,723 3.74% 704,617 7,129 4.01% Loans 4,751,505 62,384 5.21% 4,643,971 60,082 5.19% 4,388,772 60,939 5.51% Total interest-earning assets 6,294,187 77,049 4.86% 6,093,516 73,552 4.84% 5,440,713 71,760 5.23% Total noninterest-earning assets 28,460 33,786 19,058 Total average assets $6,322,647 $6,127,302 5,459,771 Interest-bearing liabilities Interest-bearing transaction accounts 2,503,785 21,072 3.34% 2,460,332 20,460 3.34% 1,903,561 16,992 3.54% Money market accounts 1,424,742 11,612 3.23% 1,438,964 11,586 3.23% 991,303 8,135 3.26% Savings deposits 83,877 105 0.50% 85,313 103 0.48% 94,127 120 0.51%
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Time deposits 626,991 5,903 3.74% 603,903 5,572 3.70% 865,494 9,146 4.19% Interest-bearing deposits 4,639,395 38,692 3.31% 4,588,512 37,721 3.30% 3,854,485 34,393 3.54% Borrowings — — 0.00% 6 — 0.00% 272 3 4.38% Other interest-bearing liabilities 105,870 507 1.90% 81,171 286 1.41% 68,691 260 1.50% Total interest-bearing liabilities $4,745,265 $ 39,199 3.28% $4,669,689 $ 38,007 3.26% $3,923,448 $ 34,656 3.50% Noninterest-bearing liabilities Noninterest-bearing deposits 976,345 869,041 994,758 Other noninterest- bearing liabilities 24,486 23,466 23,027 Total noninterest-bearing liabilities 1,000,831 892,507 1,017,785 Total average liabilities 5,746,096 5,562,196 4,941,233 Shareholders' equity 576,551 565,106 518,538 Total liabilities and shareholders' equity $6,322,647 $6,127,302 $5,459,771 Net interest income $ 37,850 $ 35,545 $ 37,104 NIM 2.39% 2.34% 2.71% Cost of funds $5,721,610 $ 39,199 2.72% $5,538,730 $ 38,007 2.75% $4,918,206 $ 34,656 2.80% Cost of deposits $5,615,740 $ 38,692 2.73% $5,457,553 $ 37,721 2.77% $4,849,243 $ 34,393 2.81% For the Nine Months Ended September 30, 2026 September 30, 2025 Average Balance Interest & Fees Yield/ Rate Average Balance Interest & Fees Yield/ Rate (tax-equivalent basis, $ in thousands) Interest-earning assets Interest-earning deposits in banks $ 561,727 $ 15,576 3.71% $ 317,690 $ 10,024 4.22% Investment securities (TE) 890,388 25,183 3.78% 697,985 21,533 4.12% Loans 4,663,615 181,809 5.21% 4,334,188 176,763 5.45% Total interest-earning assets 6,115,730 222,568 4.87% 5,349,863 208,320 5.21% Total noninterest-earning assets 28,096 20,827 Total average assets $ 6,143,826 $ 5,370,690 Interest-bearing liabilities Interest-bearing transaction accounts 2,429,350 60,883 3.35% 1,878,704 50,591 3.60% Money market accounts 1,398,282 33,974 3.25% 974,703 24,173 3.32% Savings deposits 85,952 315 0.49% 97,138 364 0.50% Time deposits 640,820 18,038 3.76% 863,253 27,755 4.30% Interest-bearing deposits 4,554,404 113,210 3.32% 3,813,798 102,883 3.61% Borrowings 94 3 4.27% 1,745 59 4.52% Other interest-bearing liabilities 82,851 939 1.52% 91,815 1,536 2.24% Total interest-bearing liabilities $ 4,637,349 $ 114,152 3.29% $ 3,907,358 $ 104,478 3.57% Noninterest-bearing liabilities Noninterest-bearing deposits 916,135 933,214 Other noninterest-bearing liabilities 24,071 24,170 Total noninterest-bearing liabilities 940,206 957,384 Total average liabilities 5,577,555 4,864,742 Shareholders' Equity 566,271 505,948
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Total liabilities and shareholders' equity $ 6,143,826 $ 5,370,690 Net interest income $ 108,416 $ 103,842 NIM 2.37% 2.60% Cost of funds $ 5,553,484 $ 114,152 2.75% $ 4,840,572 $ 104,478 2.89% Cost of deposits $ 5,470,539 $ 113,210 2.77% $ 4,747,012 $ 102,883 2.90% Balance Sheet Data Assets September 30, 2026 June 30, 2026 September 30, 2025 ($ in thousands) Cash and due from financial institutions $ 485,870 $ 353,369 $ 339,406 Investment securities 1,021,630 1,003,538 689,296 Loans by type: Commercial real estate - owner occupied 160,628 161,637 160,216 Commercial real estate - non-owner occupied 4,234,190 4,060,364 3,849,474 Construction and land development 56,162 41,763 15,250 Residential real estate 190,158 191,404 193,291 Commercial and industrial 135,176 154,676 170,377 Consumer 9,644 9,089 9,636 Agricultural 63,687 59,197 39,614 Total gross loans 4,849,645 4,678,130 4,437,858 Less: Net deferred loan fees & hedged loan MTM (118,184) (69,389) (48,976) Less: Allowance for credit losses - loans (111,749) (107,826) (100,771) Net loans 4,619,712 4,500,915 4,288,111 Accrued interest receivable 25,197 22,815 24,861 Premise and equipment, net 10,534 10,712 10,406 Deferred tax assets, net 31,291 28,791 25,370 Derivatives 149,283 84,278 58,939 Other assets 38,078 38,096 38,515 Total assets $ 6,381,595 $ 6,042,514 $ 5,474,904 Liabilities and shareholders' equity Deposits: Noninterest-bearing demand deposits $ 901,373 $ 825,271 $ 883,675 Money market accounts 1,531,100 1,416,955 1,064,377 Interest-bearing transaction accounts 2,488,396 2,428,866 2,002,239 Savings deposits 84,811 84,606 92,738 Time deposits 608,094 618,972 818,107 Total deposits 5,613,774 5,374,670 4,861,136 Accrued interest payable 3,582 2,952 5,484 Borrowings — — — Cash collateral held related to derivatives 149,590 81,970 62,480 Other liabilities 23,779 15,041 18,104 Total liabilities 5,790,725 5,474,633 4,947,204 Shareholders' equity 590,870 567,881 527,700 Total liabilities and shareholders' equity $ 6,381,595 $ 6,042,514 $ 5,474,904 Capital Ratios September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Tier 1 leverage ratio 9.39% 9.22% 9.35% 9.40% 9.54% Common equity tier 1 capital ratio 13.34% 13.18% 13.14% 12.75% 12.58%
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Tier 1 risk-based capital ratio 13.34% 13.18% 13.14% 12.75% 12.58% Total risk-based capital ratio 14.61% 14.44% 14.41% 14.02% 13.85% Non-GAAP Reconciliation In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial measures. Management has presented these non-GAAP financial measures in this press release because management believes that they provide useful and comparative information to assess trends in the Bank's core operations. However, the non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of the non-GAAP financial measures, see the table below: Core Pre-Tax, Pre-Provision Income This figure is defined as net interest income, plus noninterest income, less the change in the fair value of derivatives, less noninterest expense. The purpose of this non-GAAP financial measure is to remove the market volatility that can be included in the change in the fair value of derivatives that do not have fair value hedge accounting treatment (undesignated), which is a component of noninterest income. We hedge our interest rate risk through interest rate derivatives and a portion of the gain/loss on derivatives is reflected in our income statement. In addition, this measure is shown before the provision for credit losses and income tax expense. We believe that this non-GAAP financial measure provides a clearer picture of our operational earnings. For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Net interest income $ 37,846 $ 35,537 $ 37,095 $ 108,399 $ 103,821 Noninterest income 19,800 5,011 892 28,568 (5,027) Non-core item: Less change in the fair value of derivatives 17,149 3,178 (1,568) 22,056 (12,013) Core noninterest income 2,651 1,833 2,460 6,512 6,986 Less noninterest expense 11,203 11,937 11,164 35,585 33,087 Core pre-tax, pre-provision income $ 29,294 $ 25,433 $ 28,391 $ 79,326 $ 77,720 Adjusted Efficiency Ratio This non-GAAP financial measure is defined as noninterest expense divided by the sum of net interest income and core noninterest income, where core noninterest income excludes the impact of changes in the fair value of undesignated interest rate swaps. For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Total noninterest expense (A) $ 11,203 $ 11,937 $ 11,164 $ 35,585 $ 33,087 Net interest income (B) 37,846 35,537 37,095 108,399 103,821 Noninterest income (C) $ 19,800 $ 5,011 $ 892 $ 28,568 $ (5,027) Less change in the fair value of derivatives 17,149 3,178 (1,568) 22,056 (12,013) Core noninterest income (D) $ 2,651 $ 1,833 $ 2,460 $ 6,512 $ 6,986 Efficiency Ratio (A)/(B +C) 19.43% 29.44% 29.39% 25.98% 33.49% Adjusted Efficiency Ratio (A)/(B+D) 27.66% 31.94% 28.22% 30.97% 29.86% Adjusted EPS This figure is defined as adjusted net income divided by weighted average shares outstanding. Adjusted net income is calculated
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as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps. For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Net income $ 30,609 $ 19,616 $ 19,684 $ 68,171 $ 47,401 Non-core item: Change in the fair value of derivatives 17,149 3,178 (1,568) 22,056 (12,013) Tax Effect (4,887) (906) 447 (6,286) 3,424 Change in the fair value of derivatives, net 12,262 2,272 (1,121) 15,770 (8,589) Adjusted net income 18,347 17,344 20,805 52,401 55,990 Weighted average shares outstanding 14,190,307 14,341,273 14,517,644 14,348,514 14,610,286 Adjusted EPS $ 1.29 $ 1.21 $ 1.43 $ 3.65 $ 3.83 Adjusted ROAA and ROAE These figures are defined as adjusted net income divided by average assets and adjusted net income divided by average shareholders' equity. Adjusted net income is calculated as reported net income excluding the after-tax impact of changes in the fair value of undesignated interest rate swaps. For the Three Months Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Adjusted net income 18,347 17,344 20,805 52,401 55,990 Adjusted ROAA 1.15% 1.14% 1.51% 1.14% 1.39% Adjusted ROAE 12.63% 12.31% 15.92% 12.37% 14.80% View source version on businesswire.com: https://www.businesswire.com/news/home/20261023651618/en/ Investor Contact: Brian Killeen EVP - Chief Financial Officer ir@rivercitybank.com (916) 567-2702 Media Contact: Pamela Hansen VP, Director of Marketing and Events marketingrcb@rivercitybank.com (916) 567-2622 Source: River City Bank