Discounted Cash Flow Calculation for OTCPK:RCBC using Excess Returns Model Model
The calculations below outline how an intrinsic value for River City Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
River City Bank
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
River City Bank's
is considered below, and whether this is a fair price.
Price based on past earnings
River City Bank's earnings available for a low price, and how does
this compare to other companies in the same industry?
River City Bank's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Unable to determine if River City Bank is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
River City Bank's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
River City Bank
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Stephen A. Fleming, also known as Steve, has been the Chief Executive Officer and President of River City Bank since September 2008. Mr. Fleming serves as the Chief Executive Officer and President of River City Bank (Sacramento, CA). He was employed at Farmers & Merchants Bancorp. He served as the Chief Executive Officer and President of National Bank of the Redwoods since December 01, 2003. He has over 35 years of banking experience, including over 20 years with Bank of America in Sacramento and London, England. While with Bank of America, he held a variety of progressively more senior positions, including serving as the Head of Capital Raising and a Member of The Executive Committee for the Bank’s Europe, Middle East and Africa Division. Prior to joining River City Bank, he was the Founder and Chief Executive Officer of Presidio Bank in San Francisco. He serves as a Director of River City Bank (Sacramento, CA). He has been a Director of River City Bank since 2008. He served as a Director of National Bank of the Redwoods and Redwood Empire Bancorp. since December 01, 2003. He has been involved in a variety of charitable activities over the years, including serving as a Board Member for the Kelly Foundation. He is also on the board of the Greater Sacramento Area Economic Council, a member of the Sacramento Host Committee, President of the Sacramento chapter of Lambda Alpha, the honorary society for the advancement of land economics and President of the Capital Region Family Business Center. Mr. Fleming received a BA in Economics from the University of California at Davis and was awarded membership in the Phi Beta Kappa honor society. He also completed his MBA in Finance, Accounting and Real Estate at the University of California at Berkeley. In addition, he holds NASD Series 7 and 63 certifications in the area of securities.
Insufficient data for Steve to compare compensation growth.
Insufficient data for Steve to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure of the
River City Bank
management team in years:
The average tenure for the River City Bank management team is over 5 years, this suggests they are a seasoned and experienced team.
Founder & Consultant
Executive VP & CFO
Executive VP & COO
Senior VP & Business Development Officer
Senior Vice President & Director of Human Resources
Executive VP & Chief Credit Officer
Executive VP & Consumer Banking Director
Commercial Banking Director
Board of Directors Tenure
Average tenure and age of the
River City Bank
board of directors in years:
The average tenure for the River City Bank board of directors is over 10 years, this suggests they are a seasoned and experienced board.
River City Bank, together with its subsidiaries, provides various banking and financial services in the United States. It offers checking, savings, term certificate, money market, and NOW accounts; interest-bearing and noninterest-bearing demand deposits; and time deposits. The company also provides residential mortgage, commercial real estate, consumer, commercial and industrial, construction and land development, agricultural, business, and personal loans, as well as home equity loans, and revolving and non-revolving lines of credit. In addition, it provides cash management services, such as remote/mobile deposit capture, e-statements, bill pay, positive pay, automated clearing house, wire transfer, courier, merchant, and debit card services; wealth management services; and online and mobile banking services. The company operates through 12 branch locations in Contra Costa, El Dorado, Placer, Sacramento, and Yolo counties, California. River City Bank was founded in 1973 is headquartered in Sacramento, California.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.