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River City Bank

RCB CORP

River City Bank is a California state-chartered bank engaged in providing a range of banking services to individuals and businesses in California. The company's primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial, agriculture, residential mortgage, and consumer loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate in the Western United States.

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S&amp;P Slashes Ratings Of 5 US Regional Banks Facing Growing Challenges

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River City Bank Announces Changes to the Board of Directors

Earnings

River City Bank Reports Strong Net Income of $17.2 Million for Q2 2024, Record Net Income of $35.9 Million Year to Date, Crossing the $5 Billion Asset Threshold

River City Bank Reports Net Income of $16.2 Million for the Third Quarter of 2024, Net Income of $52.1 Million Year to Date, and a Quarterly Cash Dividend

River City Bank Announces the Formation of Public Sector Banking Division

River City Bank Reports 9th Consecutive Year with Record Net Income in 2024 and an Increase in the Quarterly Cash Dividend

S&amp;P Global Ratings has cast a spotlight on the challenges faced by several U.S. regional banks, resulting in a series of downgrades that have reverberated <a href="https://www.benzinga.com/topic/banks">through the financial sector.</a> 



According to the renowned rating agency, the Federal Reserve&#8217;s tight grip on monetary policy is now putting a strain on the funding, liquidity, and&nbsp;revenue of many U.S. banks.



<h2 class="wp-block-heading">S&amp;P Global Ratings&#8217; Actions On US Banks</h2>



Among the banks affected by the downgrades, Associated Banc-Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASB#NYSE">ASB</a>), Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>), KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>), UMB Financial Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UMBF#NASDAQ">UMBF</a>), and Valley National Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VLY#NASDAQ">VLY</a>) have all seen their ratings lowered by one notch, with stable outlooks assigned. This recalibration reflects the challenges these banks face in the current environment and the potential impact on their overall stability.



Both Comerica and Keycorp slipped 0.8% in the premarket trading on Tuesday. 



Additionally, River City Bank (OTCPK: RCBC) and S&amp;T Bancorp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STBA#NASDAQ">STBA</a>) have had their outlooks revised to negative while maintaining their ratings, signaling potential concerns that investors and stakeholders should monitor.



S&amp;P affirmed the rating and maintained a negative outlook on Zions Bancorporation N.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZION#NASDAQ">ZION</a>)



Read also: <a href="https://www.benzinga.com/news/large-cap/23/08/33868399/are-us-banks-on-shaky-ground-stocks-tumble-as-fitch-sounds-alarm-on-potential-downgrades">Are US Banks On Shaky Ground? Stocks Tumble As Fitch Sounds Alarm On Potential Downgrades</a>



Moody&#8217;s took a <a href="https://www.benzinga.com/news/large-cap/23/08/33628213/us-banking-sector-shaken-moodys-drops-credit-ratings-of-10-banks-sounds-alarm-for-more-downgrades">similar action</a> earlier this month, when it downgraded 10 U.S. banks and placed six on review for prospective downgrades, including Bank of New York Mellon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BK#NYSE">BK</a>) US Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>), and Truist Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>).



<h2 class="wp-block-heading">Rising Distressed Loans, Funding Costs and Liquidity Squeeze</h2>



The impact of higher interest rates on borrowers is becoming evident through rising nonperforming assets, delinquencies, and charge-offs, approaching historical averages, according to S&amp;P Global Ratings. 



The report also suggests that banks with significant exposure to commercial real estate (CRE), especially office loans, could face the most significant strains on asset quality. 



U.S. banks have increasingly turned to wholesale borrowings as a means of raising capital, leading to a more than 40 basis points rise in funding costs in the second quarter and over 180 basis points since the Federal Reserve began its rate hikes. The decrease in deposits has also put pressure on liquidity for many banks. 



S&amp;P Global Ratings estimates that FDIC-insured banks collectively held more than $550 billion in unrealized losses on available-for-sale and held-to-maturity securities as of June 30, 2023.



<h2 class="wp-block-heading">Far From Being A Systemic Risk</h2>



While challenges remain for U.S. regional banks amid changing economic conditions, S&amp;P Global Ratings indicates that most banks have taken steps to mitigate risks and maintain stability.



&#8220;About 90% of the banks we rate have stable outlooks while only 10% have negative outlooks,&#8221; analysts wrote in the report. 



&#8220;The preponderance of stable outlooks reflects that stability in the U.S. banking sector has improved significantly in recent months,&#8221; analysts indicated, adding that &#8220;most banks can manage a likely further moderate deterioration in funding.&#8221;



The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), a gauge to assess the performance of U.S. small and medium-sized banks, has lost nearly 9% since the start of August and 25% year to date. 



Now read: <a href="https://www.benzinga.com/news/earnings/23/08/33979928/us-stocks-set-to-extend-rally-as-fed-speeches-nvidia-q2-print-loom-analyst-says-dont-panic-as-pullb">US Stocks Set To Extend Rally As Fed Speeches, Nvidia Q2 Print Loom: Analyst Says &#8216;Don&#8217;t Panic&#8217; As Pullback Presents Buying Opportunity</a>



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S&P Slashes Ratings Of 5 US Regional Banks Facing Growing Challenges

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Latest River City Bank Stock News | OTC:RCBC | Benzinga

Tuesday, August 22, 2023

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