River Financial Corporation Reports 17.1% Increase in Net Income for Fiscal Year 2024

River Financial Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net income rising to $31.3 million, up 17.1% from $26.7 million in 2023. This growth was primarily driven by a 19.1% increase in net interest income, which reached $94.4 million compared to $79.3 million in the previous year. The rise in net interest income was attributed to a higher average balance of interest-earning assets, which increased to $3.14 billion from $2.81 billion, alongside an increase in loan yields from 5.52% to 6.29%. However, noninterest income decreased to $15.4 million from $20.6 million, largely due to losses on the sale of investments and a reduction in Community Development Financial Institution award grants.

The company also experienced notable changes in its balance sheet, with total assets growing by 10.7% to $3.58 billion, up from $3.24 billion in 2023. Total loans increased by 11% to $2.49 billion, reflecting organic growth and the bank's expansion into new markets. Deposits rose by 12.3% to $3.07 billion, driven by a combination of noninterest-bearing and interest-bearing accounts. The allowance for credit losses increased to $32.1 million, reflecting the growth in the loan portfolio and a rise in net charge-offs from $643,000 in 2023 to $2.7 million in 2024.

Strategically, River Financial Corporation has focused on expanding its footprint in Alabama, operating 24 banking locations and employing approximately 334 full-time and 20 part-time employees as of December 31, 2024. The bank's growth strategy includes both organic growth and potential acquisitions, although management has indicated that maintaining asset quality and controlling costs will be critical as the company pursues these opportunities. The bank's capital ratios remain strong, with a total risk-based capital ratio of 13.15%, well above the regulatory minimum.

Looking ahead, River Financial Corporation anticipates continued growth, although it acknowledges potential challenges from fluctuating interest rates and economic conditions. The company has implemented measures to manage interest rate risk and maintain liquidity, including utilizing lines of credit and monitoring its asset-liability composition. Management remains optimistic about the bank's ability to navigate these challenges while pursuing its growth objectives in the competitive Alabama banking market.