February 29, 2024

Celebrating California Hall of Fame Honorees

""

River City Bank was honored to participate in this year's California Hall of Fame event at the California Museum in Downtown Sacramento. Governor Gavin Newsom and First Partner Jennifer Siebel Newsom inducted the 17th class of honorees, highlighting trailblazers who have embodied the California Spirit. Team RCB was in attendance to celebrate the newest class of inductees, including The Go-Go's, federal judge and civil rights leader Thelton E. Henderson, and basketball star Cheryl Miller, to name a few.

""
""
""
""

Needless to say, we are "Head Over Heels" with this year's Hall of Fame inductees and congratulate them all on this well-deserved honor.

To learn more about the California Museum and the California Hall of Fame, visit their website at www.californiamuseum.org.

February 26, 2024

Protecting your Business from Fraud with Positive Pay

""
""

Even though evolving payment options means that fewer checks are being written, check fraud remains a threat to businesses. Positive Pay is one of the best fraud detection tools and River City Bank offers two options: Check Positive Pay and ACH Positive Pay.

ACH Positive Pay. ACH Positive Pay is a security feature that prevents unauthorized electronic debits from posting to your accounts. Whenever there are debits from new or unrecognized sources, they are highlighted as exceptions for your review. You can either add these new companies to your list of authorized debtors or return the transactions within the Commercial Cash Management platform.

Check Positive Pay. Check Positive Pay matches the check number and dollar amount of each check presented for payment against an approved list of authorized checks issued by your company. Both components of the check must match exactly to be paid. If there isn't a match, the check is flagged as an exception and a list will be emailed for authorization before payment will be made. A payee match is automatically added to enhance your check-positive pay review process.

At River City Bank, your account security is our priority. If you would like to learn more about Positive Pay, please contact our Cash Management Team at (916) 567-2660 or email at [email protected]

February 26, 2024

Meet Brian Killeen

""
""

Brian Killeen is River City Bank's Chief Financial Officer. As CFO, Brian oversees its accounting, financial reporting, and treasury functions. Since his arrival at the Bank in 2007 as the Controller, he has gradually assumed additional responsibilities within the Finance Department and spearheaded several bank-wide initiatives. Brian joined us to chat about his passion for Bay Area sports teams, his new role at River City Bank, and the importance of his faith.

January 25, 2024

River City Bank Reports 8th Consecutive Year With Record Net Income in 2023 and a Quarterly Cash Dividend

SACRAMENTO, CA - River City Bank (the Bank) reported its 8th consecutive year of record net income with $60.3 million or $40.49 per diluted share for the year ended December 31, 2023; this was $12.5 million more than the $47.8 million or $32.22 per diluted share for the year ended December 31, 2022. The Bank also reported net income of $16.8 million, or $11.28 per diluted share, for the quarter ended December 31, 2023, which compares favorably to the $11.5 million, or $7.72 per diluted share, for the same period in 2022. The Bank’s earnings for the year ended December 31, 2023 represented a healthy 15.7% return on equity capital and 1.34% return on assets. The improved net income versus the prior year was driven by the following factors:

  • Higher loan balances – Average loan outstandings in 2023 were $477 million higher than the prior year, thereby increasing net interest income.
  • Increased net interest margin (NIM) – For 2023, NIM increased to 2.74% from 2.68% in the prior year. The Bank has seen a benefit in NIM as market rates have increased over these two years. Despite experiencing significantly higher deposit costs during 2023, the Bank had $19.1 million more net interest income than in 2022.
  • The provision for credit losses in 2023 was $12.6 million, which was $5.8 million less than the $18.4 million in 2022. The provision for credit losses in 2023 reflects the growth in the Bank’s loans this year and concern for continued deterioration in the office segment of the Bank’s commercial real estate portfolio. During 2023, the Bank did not experience any actual credit losses and the Bank’s Allowance for Credit Losses for Loans was a robust 2.61% as of December 31, 2023.
  • The Bank recognized a $3.9 million loss in 2022 on the sale of $34 million of available for sale corporate bonds which were yielding only 0.95%. At the time of the sale, the Bank was able to re-invest in U.S. Treasuries and Agency securities at a significantly higher yield.

“With the Bank’s founding in 1973, we celebrated 50 years of consistent and reliable service to our customers in 2023 and we are thankful for the goodwill that we have built with our loyal and expanding customer base,” said Steve Fleming, president and chief executive officer. “Notwithstanding the turmoil in the banking industry that was caused by the failure of several banks in the first half of this year, our total deposits grew significantly from $3.4 billion as of December 31, 2022 to $4.3 billion as of December 31, 2023; as such, the Bank’s liquidity remains healthy. At the same time, our asset quality remains strong with a very short effective duration (average of 1.15 years) bond portfolio and virtually no delinquencies or non-performing loans. We believe we can continue to grow our commercial real estate loan portfolio as we focus on loans secured by multi-family, retail, and industrial properties, as well as expanding our geographic footprint to other western states outside of California. On the other hand, we continue to see deterioration in the office segment of our commercial real estate loan portfolio from the reduction in demand as employers continue to provide work from home opportunities for their employees.”

“The Bank’s high quality investment securities portfolio continues to perform well with relatively small unrealized losses of 1.7 percent and there are no investment securities categorized as held-to maturity,” said Brian Killeen, chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 26.6 percent efficiency ratio for the year ended December 31, 2023. Though our total non-interest expense increased in 2023 over the prior year, our focus on high productivity and managing expenses continues to be evident by our continued low efficiency ratio.”

Shareholders’ equity for River City Bank on December 31, 2023 increased $65 million to $418 million, when compared to the $353 million as of December 31, 2022. The increase was primarily driven by current year retained earnings, as well as a $9.3 million improvement in the Bank’s accumulated other comprehensive income position. The Bank’s capital ratios remain well above the regulatory definition for being Well Capitalized, with a Tier 1 Leverage Ratio of 8.2% as of December 31, 2023.

Additionally, Mr. Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.37 per common share to shareholders of record as of February 6, 2024, and payable on February 20, 2024.

November 20, 2023

Commercial contractors need a banking partner at their side to navigate opportunity and risk

""

By Rebecca Fabisch Miller, Executive Vice President and Commercial Banking Director, River City Bank

""

With a still-vibrant level of activity and reasons for optimism, Northern California’s commercial contractors remain healthy and strong. Many contractors in the region enjoy a strong backlog in the near-to-medium term.

 

But longer term, questions remain, as they always will in this cyclical – if not sometimes volatile – industry. Faced with fluctuating economic conditions, continued rising interest rates, inflation, a tightening labor market, and unpredictable volatility in the coming years, planning for the more-distant future remains a challenge.

The regional construction industry, estimated at $9.1 billion in 2023 and expected to increase next year, is still likely to fall short of the levels it reached in 2021, according to recent projections. That makes strategic planning difficult, especially for contractors who must weigh the capital costs and minimum level of liquidity they should maintain on their balance sheet.

As an experienced banker with a diverse portfolio of contractor clients at River City Bank, I know the industry has been here before. I’ve seen up close what works, and what doesn’t in positive but uncertain times. And with the western part of the U.S. the only area in the nation to see an increase in construction backlogs this year, I’m also optimistic in the short term.

Still, there are several areas that commercial contractors should prioritize to maximize opportunities and minimize unexpected risks in the long term.

Leveraging cash flow

For the first time in decades, deposits can generate additional revenue. If you’re a commercial contractor with funds sitting in the bank, you can finally earn a meaningful return on your deposits. In fact, River City Bank has several programs that allow its clients to maximize their deposits, while ensuring that up to $150 million has full FDIC insurance. Money market accounts and certificates of deposit can deliver especially attractive interest rates these days. Even retention accounts can generate sizeable income.

Keep in mind, though, that with interest rates rising, commercial contractors should also be careful with capital expenditures. Take care to manage excess cash carefully and avoid incurring unnecessary debt in a period of economic flux. Now is the time to consider renting and/or incurring short-term leases if new equipment is needed to work through the current level of backlog.

Develop a hiring pipeline

Today’s economic environment is unusual in that it is marked by low unemployment. This is critical in the construction industry, where the unemployment rate has fallen below 4% and hiring skilled workers is a challenge.

It’s important to develop a hiring pipeline so you don’t end up overpaying for talent as you compete for new employees. You might consider an example from another industry. At River City Bank, for instance, we recruit at university job fairs and offer a voluntary “banking academy” to teach commercial banking to college students and develop the next generation of talent. We also have a robust summer internship program that often results in a job offer.

That approach can work in any sector. The Sacramento Region Builders Exchange, for example, has similar efforts to entice new people into skilled trades. Contractors would be smart to invest in youth programs and leadership training now to build for the future. One potential source of workers is the new charter high school for the trades in Sacramento, which opened this year.

Plan for succession

Nobody wants to work forever. Contractors need to plan for succession, so when they do turn over the company to new owners, the company doesn’t miss a beat or a client. Some of the best transitions I have witnessed had a succession plan in place as early as 15 years prior to the sale to the new generation of owners.

Contractors need to identify the next generation, then coach and mentor them for their respective future leadership roles. Mentorship programs help create an environment of sharing years of knowledge from the folks about to retire with the newly-hired, younger employees.

As part of this planning, companies should work with their bank early to figure out an appropriate debt structure to facilitate a company sale. Owners don’t want to walk away from something they’ve spent years building without adequate compensation, but they also need to leave behind something of value that can survive.

Your bank is your partner

Many commercial contractors don’t think of using their banker as a true strategic partner, the same way they would with their surety, CPA, and attorney. But they should. If you’re changing your corporate structure, for example, you call your lawyer. Similarly, any operational strategy you pursue will affect your finances. When that happens, you should talk to your bank.

At River City Bank, we have the experience and a portfolio of relationships large enough that we’ve seen the pitfalls and benefits of many strategic actions. Among the many things we’ve learned is that it’s important to stick to what you know. We’ve seen companies bid on larger jobs or those outside of their normal course of work only to lose money because they lacked expertise.

At our bank, we also focus on what we do best – and that is work with you to find solutions for your business. The construction industry is challenging enough. It’s important to find a partner that can help bring stability and success for years to come.

To learn more about our commitment to nonprofit organizations in our communities, or to inquire how we might provide services that support your mission, please visit us here or contact one of our relationship managers at (916) 567-2899.

With assets of over $4.3 billion, River City Bank is the largest independent and locally owned and managed bank in the Sacramento region. With a 50-year track record of success, eight branches, an office in San Francisco, and a presence in Southern California, the bank is rated as one of the strongest in the country.

 

MEMBER FDIC

Rebecca Fabisch Miller has spent her 30-year commercial banking career in Sacramento, working as a relationship manager and regional director at several major banks. She earned her MBA from the University of California, Davis, and has an undergraduate degree in international business and marketing from California State University, Sacramento. She is the treasurer for the California Forest Foundation and has been involved with many local charities.

 

 

November 7, 2023

Meet Dan Franklin

""
""

Dan Franklin is EVP, Director of Commercial Real Estate at River City Bank.  He manages the commercial real estate lending activity for the Bank and leads a team that focuses on establishing long-term relationships with commercial real estate investors across the Western U.S. Dan took time to chat with us about ‘80s rock and country music, and his one-time dream of becoming a veterinarian.

November 7, 2023

Yolo Crisis Nursery Groundbreaking

""
""

River City Bank had the distinct pleasure of attending the groundbreaking ceremony for the future home of the Yolo Crisis Nursery. The demand for services has become so great that the program is expanding to an 8,800-square-foot building in Davis, set to open in Spring 2025. The Yolo Crisis Nursery team raised the funds in record time  as there is a need for a larger facility to meet the increasing demand and serve more children and families in crisis in Yolo County.

""
""

With a larger facility comes an opportunity to offer even more help, with the team planning to add counseling and therapy services and job-seeking assistance to ensure that parents and kids that access their programs thrive.

To learn more about Yolo Crisis Nursery, visit their website at www.yolocrisisnursery.org

November 7, 2023

PBS KVIE Celebrates Local Art

Photo of three people standing in front of a building.
Photo of three people standing in front of a building.

River City Bank was on hand to support the PBS KVIE Art Auction, an annual broadcast and livestream event celebrating the artwork of Northern California artists and California masters. For over 40 years, professional artists throughout the region have donated their artwork to the annual art auction, which serves as PBS KVIE's largest single fundraising event. Over 270 works of art were selected for entry into the 2023 auction.

PBS KVIE receives additional support from regional framing businesses, distinguished art experts and arts educators, and over 100 volunteers who assist with artwork moving, exhibit installation, broadcast presentation, event support, and taking live bids on the phone. The art auction is an exciting, community-supported event over three days every fall.

Thank you, PBS KVIE, for supporting the exceptional artists in our region.

November 2, 2023

Beware of Scammers Posing as Bank Employees

Hacker, malware notification on mobile phone. Smartphone with hacker alert, spam data on cellphone fraud error message, scam, virus. Flat vector illustration.
Hacker, malware notification on mobile phone. Smartphone with hacker alert, spam data on cellphone fraud error message, scam, virus. Flat vector illustration.

There are resurging scams targeting bank customers that we want to bring to your attention. The scams were initiated differently; however, their ultimate goal was the same – to get to your hard-earned money. In one instance, the customer received a text message stating that their Apple ID had been compromised and that the customer needed to call the number provided in the text to resolve the issue. In a different case, the customer’s computer screen displayed a black screen with a message from “Microsoft” prompting the customer to call the number provided on the screen in order to repair their computer.

When the customer calls the number, the scammer informs them that their bank account had been compromised and they are asked to provide their debit card number along with other identifying information. After obtaining the information, the customer is transferred to the bank’s supposed fraud department where a different scammer informs them that their money is not safe due to a compromise by bank staff. The customer is advised to immediately withdraw their money. The scammers actually stay on the phone while the customer conducts the withdrawal and then direct them to deposit the cash at a specific bitcoin ATM in order to “keep it safe”.

Please keep the following red flags of common tech support/cryptocurrency scams in mind to avoid being the next victim:

  • You receive an unsolicited phone call, text message, email, or a pop-up prompt noting that your computer is compromised.
  • You are asked to call an unknown number, or are automatically transferred, for further support.
  • You are asked to provide additional information about yourself.
  • You are asked to provide access to your computer or for you to perform certain actions on your device, such as downloading software or going to a specific website.
  • You are instructed not to disclose to bank personnel the reason for the cash withdrawal.
  • They shift the conversation from the initial topic (e.g. device issue to compromised bank account).
  • You are asked to withdraw a large sum of money and deposit it into a different account not owned by you (e.g. bitcoin ATM) in order to keep the money safe.
  • You are asked to pay in cryptocurrency for services. No legitimate business is going to demand that you send your payment in cryptocurrency.

Remember to only use known contact information when calling the bank or any other business. If you are uncertain of the legitimacy of the call, immediately hang up and call the bank using a verified contact number. Never call or respond to a number that was initially provided. In addition, be cautious of depositing your money into cryptocurrency ATMs.

To learn more about tech support or cryptocurrency scams, visit the Federal Trade Commission Consumer Advice site: https://consumer.ftc.gov/articles/how-spot-avoid-and-report-tech-support-scams or https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams.

Report fraud to the Federal Trade Commission: https://reportfraud.ftc.gov

As always, River City Bank is here for you. Should you have any questions about your personal or financial information or fear you may be a victim of a financial scam, reach out to our Customer Service Team at (916) 567-2899 or (800) 564-7144 or by email at [email protected].

October 25, 2023

River City Bank Announces Restructure of Risk Management Department

SACRAMENTO, CARiver City Bank's President and CEO Steve Fleming recently announced the restructure of the bank's risk management department, which will be implemented Nov. 1, 2023. The reorganization will create a completely independent internal audit department, implementing best practices to ensure the highest levels of risk mitigation and compliance. River City Bank believes that a proactive approach to risk management is a priority and these initiatives reinforce the company's commitment to the financial security of its customers.

Pat McHone has been appointed to the newly created role of Chief Risk Officer (CRO). Reporting to the CRO will be the Credit, Compliance, and Information Security Departments. In addition to providing ongoing executive oversight of the three groups noted above, McHone will be responsible for Business Continuity Planning, Vendor Management, and Policy Administration.

As the Bank's Executive Vice President and Chief Credit Officer, McHone has been an integral member of River City Bank's Executive Team since 2008. With close to 40 years of experience, his banking career includes 16 years as Senior Vice President and Region Manager at Mechanics Bank and seven years at Security Pacific Bank.

Ken Imwinkelried, currently the Bank's Senior Vice President and Senior Credit Manager, will be promoted to Chief Credit Officer and will report to the Chief Risk Officer. As the new CCO, Imwinkelried is responsible for all aspects of the loan approval process, credit quality, and management of the Bank's portfolio of commercial real estate, commercial and industrial, and consumer loans. He will join the Bank's Executive Team, Asset Liability Committee, Pricing Committee, and Loan Committee.

Imwinkelried first joined River City Bank in 2010 through its Commercial Banking Associate training program. Throughout his career at the Bank, he has advanced through a broad range of credit analysis, underwriting, and management positions.

Jeremy Spencer has been named as Director of Internal Audit and Regulatory Relations (DIA). The DIA will maintain a direct reporting line to the Audit Committee with an administrative reporting to the CEO. In addition to managing all in-house and outsourced audits, Spencer is the Bank's liaison to regulatory agencies.

Spencer joined River City Bank in 2011 and is currently the Senior Vice President and Director of Risk Management. Prior to joining the Bank, he was a Senior Manager with KPMG LLP U.S., where he spent five years providing audit services, Sox404 compliance consulting, and SEC reporting services to clients in the financial services industry.

"Our primary focus has always been the safety and security of our customers' assets and information," said Steve Fleming. "By identifying, evaluating and mitigating risk, we reinforce our commitment to providing a secure and trustworthy banking environment. This Risk Management Department will provide guidance to the Bank's entire executive team and board of directors to ensure our risk management practices align with the best industry practices and regulatory guidelines."