OTCPK:RCBC

Stock Analysis Report

Executive Summary

River City Bank, together with its subsidiaries, provides various banking and financial services in the United States.

Rewards

PE ratio (12.1x) is below the US market (18.9x)

Earnings grew by 49.9% over the past year

Risk Analysis

Revenue has declined by -3.2% over the past year

Latest financial reports are more than 6 months old

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

National Bank Holdings

NYSE:NBHC

Share Price & News

How has River City Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RCBC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

RCBC

-0.07%

US Banks

2.0%

US Market


1 Year Return

17.1%

RCBC

15.5%

US Banks

23.5%

US Market

Return vs Industry: RCBC exceeded the US Banks industry which returned 15.3% over the past year.

Return vs Market: RCBC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

RCBCIndustryMarket
7 Day2.5%-0.07%2.0%
30 Day3.8%-1.8%4.3%
90 Dayn/a9.3%12.2%
1 Year17.8%17.1%18.9%15.5%26.1%23.5%
3 Year43.3%41.4%34.5%25.0%53.1%43.2%
5 Year66.3%64.0%86.0%65.1%75.5%56.1%

Price Volatility Vs. Market

How volatile is River City Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is River City Bank undervalued compared to its fair value and its price relative to the market?

12.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RCBC ($200) is trading above our estimate of fair value ($161.9)

Significantly Below Fair Value: RCBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RCBC is good value based on its PE Ratio (12.1x) compared to the Banks industry average (12.8x).

PE vs Market: RCBC is good value based on its PE Ratio (12.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCBC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCBC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is River City Bank forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.4%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as River City Bank has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has River City Bank performed over the past 5 years?

49.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: RCBC has high quality earnings.

Growing Profit Margin: RCBC's current net profit margins (40.3%) are higher than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if RCBC's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare RCBC's past year earnings growth to its 5-year average.

Earnings vs Industry: RCBC earnings growth over the past year (49.9%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: RCBC's Return on Equity (11.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is River City Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RCBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: RCBC's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: RCBC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: RCBC has a sufficient allowance for bad loans.

Low Risk Liabilities: RCBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: RCBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RCBC's loans are broadly funded by customer deposits.

Level of Bad Loans: RCBC has an appropriate level of bad loans (0.08%)


Next Steps

Dividend

What is River City Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RCBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RCBC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RCBC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RCBC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RCBC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RCBC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of River City Bank's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

Steve Fleming (61yo)

11.3yrs

Tenure

0

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 R ...


Management Age and Tenure

8.0yrs

Average Tenure

Experienced Management: RCBC's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RCBC's board of directors are considered experienced (9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.2%.


Management Team

  • Chris Nelson (64yo)

    Executive VP & Consumer Banking Director

    • Steve Fleming (61yo)

      President

      • Tenure: 11.3yrs
    • Jon Kelly

      Founder & Consultant

      • Anker Christensen

        Executive VP & CFO

        • Tenure: 15.6yrs
      • Pat McHone

        Executive VP & Chief Credit Officer

        • Doug Cook

          Senior VP & Business Development Officer

          • Tenure: 1.6yrs
        • John Weubbe

          Commercial Banking Director

          • Pat Lewis

            Executive VP & COO

            • Tenure: 8yrs
          • Amii Barnard-Bahn

            Senior Vice President & Director of Human Resources

            • Tenure: 2yrs

          Board Members

          • R. Lintecum (63yo)

            Director

            • Tenure: 3.7yrs
          • Ryan Gilbert

            Director

            • Tenure: 7.3yrs
          • Michael Newell (53yo)

            Director

            • Tenure: 20yrs
          • Steve Fleming (61yo)

            President

            • Tenure: 11.3yrs
          • Shawn Devlin (57yo)

            Chairman of the Board

            • Tenure: 10.8yrs
          • Steve Pleau (72yo)

            Director

            • Tenure: 19yrs
          • Fritz Durst (60yo)

            Director

            • Tenure: 12yrs
          • Lon Burford

            Director

            • Tenure: 7.2yrs
          • Kerry Gordon

            Director

            • Tenure: 1.8yrs
          • Gary Orr

            Director

            • Tenure: 1yrs

          Company Information

          River City Bank's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: River City Bank
          • Ticker: RCBC
          • Exchange: OTCPK
          • Founded: 1973
          • Industry: Regional Banks
          • Sector: Banks
          • Market Cap: US$299.386m
          • Shares outstanding: 1.46m
          • Website: https://www.rivercitybank.com

          Location

          • River City Bank
          • 2485 Natomas Park Drive
          • Suite 100
          • Sacramento
          • California
          • 95833
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          RCBCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2010

          Biography

          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. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/18 00:45
          End of Day Share Price2020/01/17 00:00
          Earnings2018/12/31
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.