River City Bank (RCBC) AI Stock Analysis

• Market Cap: $652.65M
• Dividend Yield: 0.36%
• Average Volume (3M): 298.00
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 14,503,240
• 10 Day Avg. Volume: 93
• 30 Day Avg. Volume: 298
• PEG Ratio: 0.27
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 7.45
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $50.00 ▲(17.65% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

River City Bank's strong financial performance and undervalued valuation are the primary drivers of its stock score. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The absence of recent earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Sustained revenue growth near 25% indicates expanding core lending and fee businesses, supporting longer-term earnings power. That magnitude of top-line expansion helps absorb shocks, fund investment in services, and underpins durable profitability if credit quality and cost control remain intact.

Debt Elimination / Balance Sheet

Removing total debt materially reduces financial leverage and interest burden, increasing strategic flexibility. A debt-free position lowers default risk, enhances resilience in downturns, and permits capital deployment toward loans, reserves, or shareholder returns without additional borrowing needs.

Cash Flow Generation

Strong operating and free cash flow metrics show the bank converts earnings into cash reliably, supporting loan growth, capital needs, and dividend or buyback capacity. High conversion ratios point to quality earnings and reduce reliance on external funding for core operations.

Negative Factors

Low Equity Ratio

An equity ratio under 10% implies significant leverage typical for banking but raises sensitivity to credit losses or prolonged earnings pressure. Lower capital cushions limit loss-absorption capacity and may require capital actions in stress, constraining long-term strategic options.

Declining Free Cash Flow

A double-digit drop in free cash flow can signal emerging pressures on liquidity or higher cash requirements for operations or investments. If the decline persists it could limit capacity for organic growth, capital returns, or building reserves against credit deterioration.

Limited Operational Reporting

Missing standard operational metrics like EBITDA constrains apples-to-apples performance analysis versus peers, reducing transparency for investors and management benchmarking. Persistent reporting gaps make it harder to assess core operating efficiency over time and identify structural issues.

River City Bank Business Overview & Revenue Model

Company Description

River City Bank provides various banking services for business, consumer, and commercial real estate sectors in the United States. It offers checking, savings, and term certificate accounts. The company also provides personal loans, home equity loans, revolving lines of credit, non-revolving line of credit, and letters of credit, as well as commercial real estate, agriculture, and residential mortgage loans. In addition, it provides cash management services; lockbox, clean energy, and premier banking services; debit and credit cards; and online and mobile banking services. The company operates nine branch locations within El Dorado, Placer, Sacramento, and Yolo counties, as well as two loan production offices in San Francisco and Sonoma counties. River City Bank was founded in 1963 is headquartered in Sacramento, California.

How the Company Makes Money

River City Bank generates revenue through various key streams. Primarily, the bank earns interest income from loans issued to customers, including personal loans, mortgages, and commercial loans. The interest rate charged on these loans is typically higher than the interest paid to depositors, creating a profit margin known as the net interest margin. Additionally, RCBC earns non-interest income through fees associated with account maintenance, overdrafts, ATM usage, and transaction processing. The bank may also generate revenue from investment services and wealth management products offered to clients. Strategic partnerships with local businesses and community organizations can enhance its service offerings and customer base, further contributing to its earnings. Overall, RCBC's diversified revenue model allows for stability and growth in an ever-changing financial landscape.

River City Bank Financial Statement Overview

Summary

River City Bank is in a strong financial position with robust revenue growth and improved profitability. The elimination of debt strengthens the balance sheet, although the low equity ratio is typical for the sector. Cash flow metrics are healthy, despite a slight decline in free cash flow, indicating sound financial practices.

Income Statement

River City Bank has demonstrated strong revenue growth with a 24.89% increase from the previous year, indicating robust business expansion. The gross profit margin remained steady at 100%, reflecting efficient cost management. The net profit margin improved to 48.51%, showcasing enhanced profitability. EBIT margin is notably high at 73.49%, indicating effective operational management. However, the absence of reported EBITDA slightly limits the assessment of operational cash flow strength.

Balance Sheet

The bank maintains a solid equity base with an equity ratio of 9.42%, although it is relatively low, indicating significant leverage typical in the banking industry. The debt-to-equity ratio has improved to 0.00 due to the elimination of total debt, highlighting financial prudence. ROE stands at 15.14%, reflecting effective utilization of equity to generate profits, though slightly lower compared to peers in the banking sector.

Cash Flow

River City Bank shows strong cash flow management with positive free cash flow and a healthy operating cash flow to net income ratio of 0.84. The free cash flow to net income ratio is robust at 0.83, indicating good cash generation relative to profit. However, a 12.42% decrease in free cash flow from the previous year suggests a need to monitor future cash flow trends closely.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.75M	121.15M	100.15M	115.90M	73.45M
Gross Profit	143.75M	121.15M	100.15M	103.30M	105.31M
EBITDA	95.98M	86.42M	71.60M	69.54M	47.29M
Net Income	73.40M	60.34M	47.82M	44.48M	31.63M
Balance Sheet
Total Assets	5.14B	4.93B	4.04B	3.66B	3.32B
Cash, Cash Equivalents and Short-Term Investments	148.67M	549.03M	146.59M	161.06M	193.01M
Total Debt	51.73M	51.63M	101.53M	10.72M	16.86M
Total Liabilities	4.66B	4.51B	3.69B	3.35B	3.05B
Stockholders Equity	484.74M	417.73M	353.01M	308.36M	269.48M
Cash Flow
Free Cash Flow	61.25M	69.93M	63.34M	53.46M	45.10M
Operating Cash Flow	61.92M	70.23M	64.49M	53.95M	45.97M
Investing Cash Flow	-603.10M	-476.69M	-413.04M	-394.32M	-629.26M
Financing Cash Flow	140.81M	808.91M	334.09M	308.42M	728.79M

River City Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCBC, the sentiment is Positive. The current price of 42.5 is below the 20-day moving average (MA) of 44.13, below the 50-day MA of 43.27, and above the 200-day MA of 38.34, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 76.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RCBC.

River City Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCBC	76 Outperform	$652.65M	9.02	―	0.36%	―	―
SHBI	76 Outperform	$656.84M	11.04	10.25%	2.66%	6.01%	38.05%
ALRS	73 Outperform	$635.19M	36.78	11.37%	3.71%	42.22%	1207.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HIFS	65 Neutral	$681.79M	12.63	10.23%	0.84%	8.26%	94.53%
WASH	61 Neutral	$668.32M	12.96	10.02%	7.17%	-27.82%	-159.63%