River City Bank (RCBC) AI Stock Analysis

• Market Cap: $610.59M
• Dividend Yield: 0.36%
• Average Volume (3M): 298.00
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.43
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.45
• Shares Outstanding: 14,503,240
• 10 Day Avg. Volume: 93
• 30 Day Avg. Volume: 298
• PEG Ratio: -1.56
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 8.48
• Enterprise Value/Market Cap: 0.31
• 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: 70 Outperform
• Price Target: $46.00 ▲(8.24% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by solid financial performance (strong growth, conservative balance sheet, and healthy cash generation) and supportive valuation (low P/E and very high dividend yield). These positives are tempered by weak technical momentum, with the stock below key moving averages and bearish MACD/oversold readings.

Positive Factors

Conservative balance sheet

Conservative leverage and steady equity growth provide durable loss-absorption capacity and funding flexibility. Over the next 2–6 months this supports lending capacity, regulatory resilience and measured growth without heavy reliance on volatile external financing, bolstering stability.

Strong cash generation

Consistent positive operating and free cash flow, with FCF tracking net income near one-to-one and a 2025 rebound, indicates high earnings quality. This durable cash conversion supports dividend capacity, funds organic growth initiatives, and reduces dependence on capital markets for funding.

Sustained revenue momentum

Multi-year revenue expansion and a clear step-up in 2025 demonstrate durable top-line momentum. Sustained revenue growth enhances scale economics, supports diversified fee income and creates headroom for reinvestment, improving the franchise's resilience across economic cycles.

Negative Factors

Margin compression

Material margin compression in 2025 reduces core earnings power and suggests expense, mix or yield pressures. If persistent over the coming months this will erode return on equity and free cash flow, constraining capital deployment and potentially pressuring dividend sustainability.

Net income decline in 2025

Net income falling while revenue rises indicates profitability isn't scaling with growth, likely from higher costs or adverse mix. This weakens retained earnings accumulation and ROE improvement, raising medium-term risks to capital cushions and shareholder distributions if trends persist.

Volatile cash coverage of debt

Historic volatility in operating cash flow coverage increases financing and liquidity risk under stress. Even with 2025 improvement, inconsistent coverage can limit strategic flexibility, constrain loan growth or force external financing during downturns, warranting close monitoring over the medium term.

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

RCBC primarily makes money through (1) net interest income and (2) non-interest income. 1) Net interest income: The bank earns interest and interest-related fees on loans and other interest-earning assets and pays interest on customer deposits and other funding sources. The spread between the yield on assets (e.g., commercial loans, real estate loans, consumer loans, and securities) and the cost of funds (e.g., interest paid on deposits and borrowings) is a core driver of profitability. Loan origination, refinancing activity, loan mix, credit quality, and overall interest-rate conditions influence this spread. 2) Non-interest income: The bank generates fee-based revenue from services such as account maintenance and service charges, overdraft/NSF fees, wire/ACH and other payment-processing fees, debit/ATM-related fees, treasury and cash-management services (e.g., remote deposit capture, lockbox, merchant services), and potentially wealth management/trust or investment advisory services. The significance of specific fee categories, as well as material partnerships (e.g., card networks, payment processors, or fintech vendors) is null.

River City Bank Financial Statement Overview

Summary

Strong overall fundamentals supported by meaningful multi-year revenue growth, consistent profitability, conservative leverage, and solid free-cash-flow conversion. Offsets include notable margin compression and lower net income in 2025 despite higher revenue, plus historically volatile operating cash flow coverage.

Income Statement

Revenue has expanded meaningfully over the last several years, with a particularly sharp step-up in 2025 versus 2024, indicating strong top-line momentum. Profitability is also solid, with positive operating and net margins throughout the period. However, margins compressed materially in 2025 versus the unusually high levels seen in 2022–2024, suggesting either mix/expense pressure or normalization after a very strong run; net income also declined in 2025 despite the revenue surge, which is a key near-term watch item.

Balance Sheet

The balance sheet is conservatively levered, with low debt relative to equity across the period and an improving leverage profile versus the elevated 2022 level. Equity has grown steadily year over year, supporting balance-sheet strength. Returns on equity remain healthy (generally low-to-mid teens), though they have softened in 2025 versus 2023–2024, implying profitability is not scaling as efficiently as the balance sheet expands.

Cash Flow

Cash generation is strong: operating cash flow and free cash flow are consistently positive, and free cash flow closely tracks net income (near one-to-one), which supports earnings quality. Free cash flow growth rebounded in 2025 after a decline in 2024, showing renewed cash momentum. A notable weakness is the very volatile ability of operating cash flow to cover debt service/interest-related needs (extremely low in 2020–2024 but much stronger in 2025), which points to variability that should be monitored.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	281.98M	143.75M	121.15M	100.15M	115.90M
Gross Profit	139.57M	143.75M	121.15M	100.15M	103.30M
EBITDA	95.09M	95.98M	86.42M	71.60M	69.54M
Net Income	68.42M	73.40M	60.34M	47.82M	44.48M
Balance Sheet
Total Assets	5.81B	5.14B	4.93B	4.04B	3.66B
Cash, Cash Equivalents and Short-Term Investments	477.47M	148.67M	549.03M	146.59M	161.06M
Total Debt	26.57M	51.73M	51.63M	101.53M	10.72M
Total Liabilities	5.26B	4.66B	4.51B	3.69B	3.35B
Stockholders Equity	548.49M	484.74M	417.73M	353.01M	308.36M
Cash Flow
Free Cash Flow	75.47M	61.25M	69.93M	63.34M	53.46M
Operating Cash Flow	76.48M	61.92M	70.23M	64.49M	53.95M
Investing Cash Flow	-335.75M	-603.10M	-476.69M	-413.04M	-394.32M
Financing Cash Flow	588.07M	140.81M	808.91M	334.09M	308.42M

River City Bank Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RCBC, the sentiment is Negative. The current price of 42.5 is below the 20-day moving average (MA) of 43.70, below the 50-day MA of 43.55, and above the 200-day MA of 39.24, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 34.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RCBC.

River City Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCBC	70 Outperform	$610.59M	9.35	9.26%	0.36%	―	―
WASH	70 Outperform	$613.47M	8.80	9.83%	7.17%	-27.82%	-159.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHBI	64 Neutral	$597.85M	9.92	10.25%	2.66%	6.01%	38.05%
HIFS	62 Neutral	$591.50M	11.36	11.96%	0.84%	8.26%	94.53%
ALRS	61 Neutral	$595.15M	32.77	11.37%	3.71%	42.22%	1207.84%