Page 12 – River City Bank

October 23, 2019

Client News: Dreyfuss + Blackford honored with design awards

Dreyfuss + Blackford (D+B) was recently honored at the AIA Central Valley (AIACV) Design Awards with a total of three project awards. The awards were selected by a jury of design architects from the AIA Columbus (Ohio) Chapter. The awards recognize the outstanding achievements in architecture and design of Central Valley individuals and organizations as well as celebrates the distinguished work of architects and related professionals from afar who contribute to the framework of our local built environment.

The AIA Central Valley Design Awards Program recognizes excellence in the categories of architecture, interior architecture, and reconstruction/renovation with opportunities for additional recognition of sustainable design (COTE) and custom residential projects (CRAN).

“The program serves to inform the public of the breadth and value of architectural practice,” says Kristopher Barkley, AIA, D+B’s President and Design Director. “The Chapter’s Design Awards Program also provides us with a unique opportunity to truly ‘see’ architecture and gain a better understanding about why we feel the way we do when experiencing well-designed spaces.”

Following is a list of Dreyfuss + Blackford’s recent awards:

AIA Central Valley, Citation Award | UC Santa Cruz, Upper Quarry Amphitheater Restoration

AIA Central Valley, Merit Award | PG&E, Gas Safety Academy

AIA Central Valley, People’s Choice Award | The University Union Expansion at Sacramento State University

Engineering News-Record (ENR) Best Higher Education/Research Project Award – California | The University Union Expansion at Sacramento State University

Front view of the Sacramento State University Union building

Sacramento State Univ. Union Expansion (Photo credit: Kyle Jeffers)

Front view of the PG&E Gas Safety Academy building

PG&E Gas Safety Academy (Photo Credit: David Wakely)

Dreyfuss + Blackford Architecture is a mid-size firm founded and headquartered in Sacramento, California. Established in 1950, the firm serves corporate, public, and institutional markets with solutions achieved through collaboration and innovation.

To learn more about Dreyfuss + Blackford visit them at dreyfussblackford.com.

October 23, 2019

Client Profile : Northgate Ready Mix

CEO Troy Soiland runs Northgate Ready Mix, a family-owned and operated business. After buying the name of the company and the client list from the previous owner in 2010, Troy also purchased three trucks and sought to modernize and rebrand the business. Almost immediately, he began searching for a larger location and shrewdly began investing money during a time when economic growth was at a standstill. What started as a three-truck, five employee operation has grown to 30 trucks and 39 employees.

Located in Windsor, CA, Northgate supplies quality concrete throughout the North Bay. Created with premium, locally-sourced aggregates and sand, Northgate’s product is created with its state-of-the-art computerized plant. The process ensures batch consistency and also facilitates the use of the latest admixtures.

We caught up with Troy and were able to speak with him about Northgate Ready Mix and his family’s ties to the community. He talked to us about the rapid growth of his company and how much has changed since he bought the use of the company name and customer list nine years ago.

The Soiland family has solid ties in the North Bay. Can you tell us a little bit about the family’s business history and how it has helped shape the surrounding communities?

The Soiland family has deep, deep ties to the North Bay building community, and it spans three generations. My father was a pipeline contractor, sand and gravel operator, quarry operator, and a land developer in the Marin and Sonoma County region. He was also politically active locally.

Besides Northgate Ready Mix, our extended family is involved in four different quarry operations, an asphalt supply company, a general engineering company, two different composting and topsoil companies, two portable concrete and asphalt recycling companies, two different heavy equipment repair and maintenance companies, a major commercial building contractor, and an industrial property management company. I have siblings who serve on local bank boards and planning boards of local government.

Each of these related businesses is owned and operated by the individual family members who work in them. We are not one big company. Growing up, we were given tools and provided opportunities, but all businesses sprung from personal inspiration and motivation. Very little was inherited.

Northgate Ready Mix is family-owned. How many people from your family are involved in the business? What are their roles?

Mix is a concrete supply business founded back in 2010 by myself, and my brother Dean. My wife Dawn and I are active in the daily operation and administration of the company as President and CFO, along with our oldest daughter. Both Dean and his wife Belinda are critical to the operation as the aggregate supplier, financial support, and as board members.

A fleet of Northgate trucks lined up in parking lot

What were your most important projects?

Northgate Ready Mix is fortunate to have been involved in numerous bridge projects, wineries, breweries, subdivisions, and countless wildfire rebuild of single-family dwellings. But I think the most memorable projects are the ones that “took you to school.” You know, the ones that gave you sleepless nights wondering if you would be able to pull it off. As with any business, when you try something new, mistakes are bound to happen. But once we completed those projects and learned what we can and cannot do, the projects following run more smoothly, and you can take on more of the same types of projects.

What do you think are the key ingredients that have made Northgate Ready Mix so successful?

I believe that a big part of what makes Northgate Ready Mix successful is our community connection. As a proud member of this family, our name and reputation are very important. We service customers frequently that we’ve known for decades through school, church, or related business. In part, due to our community connection, I feel a sense of duty to uphold the highest standards in the industry.

Another important aspect of our success has been innovation. We have always sought to reuse and up-cycle at every opportunity. We have developed markets that allow us to reuse all our returned and leftover concrete by crushing it back to pieces less than 1 inch in size and shipping it to job sites in one form or another. We capture all our rinse water on-site and reuse it. We also have the capability to capture and store our rainwater for use in concrete production. We are always trying to innovate and make the most of the resources at our disposal.

What brings me the greatest satisfaction as a company owner is when a customer comments regarding the professionalism of a driver or the office staff, the first-class equipment we send out each day, the respect we have for providing excellent service, or the quality of the finished product. These represent our values. The central theme is to take pride in what you do and strive for excellence.

Northgate Ready Mix strives to provide the absolute highest level of customer service. The company makes it a point to cater to customers of all sizes and seeks to provide the highest level of customer service, taking pride in every job.

To learn more about Northgate Ready Mix, visit their website at northgatereadymix.com.

October 23, 2019

Gary Orr Joins the RCB Board of Directors

Gary Orr is the newest member of River City Bank’s Board of Directors. A third-generation banker with nearly four decades of experience, Gary recently retired from Wells Fargo Bank, where he held a variety of leadership roles over the course of his 32-year tenure. Gary brings extensive experience in Investor Commercial Real Estate lending, having most recently led efforts to build relationships with CRE investors across the United States. Prior to that assignment, Orr led Wells Fargo’s middle-market commercial banking teams for the Central Valley, including the Sacramento, Modesto, Stockton and North Valley Markets. As a member of the board, Gary will provide governance and aid in River City Bank’s continued expansion efforts throughout California.

In addition to commercial real estate, he also has significant expertise in lending to companies in many industry verticals including agriculture, distribution, manufacturing, retailing, transportation, ski resort areas, and wholesaling.

Gary joins RCB at a time when Sacramento’s home market continues to thrive, and its footprint in the Bay Area and Southern California continues to expand. Gary’s extensive experience in many facets of commercial banking makes him a valuable addition to the board. We look forward to pairing his high-level insights with our nimble and client-centered approach to commercial banking.

Gary is a native of Pittsburgh, Pennsylvania and earned his bachelor’s degree in business administration and economics from the University of Pittsburgh. He currently sits on several company boards and serves on the boards of three local non-profit organizations including the Society for the Blind, Easter Seals Superior California, and the Capital Region Family Business Center. He is also a Senior Fellow with the Mountain Valley Chapter of American Leadership Forum.

Welcome aboard, Gary!

October 23, 2019

River City Bank Fêtes Clients and Supports Local Charity

River City Bank’s biennial client appreciation event took place in the lush green space located right behind their corporate offices. The event celebrates bank clients and recognizes a selected non-profit organization. Steve Fleming, RCB President & CEO, kicked off the evening by thanking all in attendance and recognizing this year’s charity of choice, the Sacramento Tree Foundation, by presenting them a check for $11,894.

During the summer months, RCB employees raised funds by initiating a series of fundraising activities. Events included a bake sale, farmer’s market, and an event deemed the “Great Banker Bake-Off,” as well as internal competitions between teams in the bank’s various offices and branch locations. River City Bank took the amount raised and matched it.

The donation will be used to bolster the expansion of the foundation’s NeighborWoods Program, which seeks to plant approximately one million trees in under-resourced and under-canopied neighborhoods throughout the six-county Sacramento region. Funds may also be directed toward the organization’s innovative certification program, which aims to ensure that tree canopy considerations be incorporated into all new building developments.

RCB clients and employees enjoyed a delicious dinner provided by the Fat Family Restaurant Group, including their famous banana cream pie, and pear cider by The Elliot Family’s Delta Island Cider Company. Relles Florist provided beautiful floral arrangements to set the tone of the event. Attendees ended the evening with parting gifts from Elevation Ten Winery and Ginger Elizabeth Chocolates.

Kelly Siefkin of CSU Sacramento with River City Bank’s Tracy Mullen, and Lindsay Bowman of CMY Fiduciary Services

Max Kelly of Avison Young with River City Bank’s Riley Gardner, and Stacy Paragary of Paragary’s Restaurant Group

Flowers by Relles Florists and client gifts from Ginger Elizabeth and Elevation Ten

Jennifer and Wayne Dawson of Triangle Well Drilling with Donna Sutherland of River City Bank, and Kenn Altine of the SPCA

River City Bank presents check to the Sacramento Tree Foundation’s Dr. Janine Bera and Ray Trethaway

Christine and Matt Michael of Michael & Sons Real Estate, Inc.

Matt Bachman and Loni Gray of MBK Engineers

Reeve-Knight Construction’s Kerry Bal and Todd Swanson, and Heather Swanson of Ameriprise Financial, enjoy the feast prepared by Fat Family Restaurants

Yolo County Supervisor Don Saylor with GSAC’s Brittany Jones and Leidhra Guild

Gordon Spector of Schetter Electric with Charice Huntley of River City Bank

Dr. Ken Fat with Dr. Janine Bera

River City Bank President & CEO Steve Fleming and wife Patti

October 18, 2019

River City Bank reports a quarterly cash dividend of $0.28 per common share

SACRAMENTO, CA — Steve Fleming, President and CEO of River City Bank (the Bank), announced that the Bank’s board of directors has approved, in connection with the Bank’s recently reported net income of $7.0 million, or $4.82 diluted earnings per share, for the quarter ending September 30, 2019, a cash dividend of $0.28 per common share to shareholders of record as of October 29, 2019, and payable on November 19, 2019.

October 17, 2019

River City Bank reports net income of $7.0 million for the third quarter of 2019 and $19.5 million year-to-date

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $7.0 million, or $4.82 per diluted share, for the quarter ending September 30, 2019. This compares favorably to the $5.9 million, or $4.06 per diluted share, for the same period in 2018. Net income was $19.5 million, or $13.33 per diluted share, for the nine months ending September 30, 2019, which compares to the $17.2 million, or $11.82 per diluted share, for the nine months ending September 30, 2018. The improved net income versus the prior year quarter was driven by:

Higher loan balances – Average loan outstandings were $217 million higher than the prior year quarter, thereby increasing net interest income.
Non-core income of $376,000 and $72,000 for the quarters ending September 20, 2019 and 2018, respectively — The Bank recorded an elevated level of prepayment penalty and deferred loan fee income on loans that paid off prior to their maturity and received interest recoveries from loans that were previously charged off.
A $250,000 increased level of provisions for loan losses due to the Bank’s exceptional loan growth; this partially offset the above benefits to net income versus the prior quarter.

“We experienced solid loan growth of $217 million, or 13.5 percent, in the nine months of 2019 due to our excellent reputation in the commercial real estate loan market and the decline in long term interest rates,” said Steve Fleming, President and CEO of River City Bank. “This growth continues to propel our net interest income higher. Though our solid loan growth during the current quarter resulted in a higher provision for loan losses, our asset quality remains exceptional. The ratio of nonperforming loans and Other Real Estate Owned to total gross loans was zero as of September 30, 2019, and we have reported net recoveries for over four years. While the credit risk environment is benign today, we know from prior experience that it will change for the worse at some point, and we think it is prudent to maintain adequate loan loss reserves in anticipation of the eventual downturn.”

The loan growth has also been sufficient to mitigate the negative impact of the rise in short term interest rates and the flattening of the interest rate yield curve over the last year. After excluding the prepayment penalty and deferred loan fee income noted above, the Bank’s net interest margin declined from 2.68 percent to 2.61 percent for the three months ending September 30, 2018 and 2019, respectively.

“Operational efficiency remains a core competency for the Bank, as evidenced by our 40 percent and 42 percent efficiency ratios for the nine months ending September 30, 2019 and 2018, respectively,” said Anker Christensen, Chief Financial Officer of River City Bank. “Over the prior year period, our focus on managing expenses continues to be evident by our low efficiency ratio. This demonstrates our ability to grow profitably despite some net interest margin compression.”

Shareholders’ equity for River City Bank on September 30, 2019, increased $22.4 million to $231 million, when compared to the $209 million as of December 31, 2018. The increase was driven by increased retained earnings and accumulated other comprehensive income due to the decline in interest rates since December 31, 2018. The Bank’s capital ratios remain well above the regulatory definitions for being Well Capitalized. Common Equity Tier 1, Tier 1 Leverage and Total Risk-based capital ratios were 11.2 percent, 9.3 percent and 12.5 percent, respectively, as of September 30, 2019.

October 2, 2019

River City Bank and its employees donate more than $11,800 to Sacramento Tree Foundation

Funds will aid in expanding urban canopy to under-resourced local neighborhoods

SACRAMENTO, CA – River City Bank, Sacramento’s premier business bank, showed its support for public health and community improvements by presenting a donation check in the amount of $11,894 to the Sacramento Tree Foundation. The donation will be used to bolster the expansion of the foundation’s NeighborWoods Program, which seeks to plant approximately one million trees in under-resourced and under-canopied neighborhoods throughout the six-county Sacramento region. Funds may also be directed toward the organization’s innovative certification program, which aims to ensure that tree canopy considerations are incorporated into all new building developments.

“As one of Sacramento’s longstanding community-based businesses, River City Bank is dedicated to seeing our region grow and prosper, and that includes supporting organizations that provide solutions for enhancing quality of life and providing personal health benefits within our neighborhoods,” said Steve Fleming, President and CEO of River City Bank. “Sacramento Tree Foundation is responsible for significant improvements in our local communities, particularly through the planting of more than one million trees in and around Sacramento, and we are pleased to contribute to its future success.”

“The presence of a healthy and vibrant urban canopy provides tangible benefits to the community, including longer life spans and stronger school and professional performance,” said Ray Tretheway, Executive Director of Sacramento Tree Foundation. “With support from visionary partners such as River City Bank, we’re able to extend those benefits to six of our region’s most underserved neighborhoods.”

River City Bank presented the donation check to Mr. Tretheway and Dr. Janine Bera, Board President of Sacramento Tree Foundation, during its biennial client appreciation reception, which was held on September 19, 2019. The donation consisted of contributions from River City Bank as a corporate entity, as well as a significant sum provided by the internal fundraising efforts of its employees.

As part of an annual tradition, River City Bank employees initiated a series of fundraising activities to encourage staff to provide donations to Sacramento Tree Foundation as its charity of choice in 2019. Activities included a bake sale, farmer’s market and an event deemed the “Great Banker Bake-Off,” as well as internal competitions between teams in the bank’s various offices and branch locations.

For more information about Sacramento Tree Foundation, visit SacTree.com.

September 18, 2019

River City Bank adds former Wells Fargo Bank executive Gary Orr as board member

Third-generation banker to contribute industry knowledge and aid in governance

SACRAMENTO, CA – River City Bank, Sacramento’s premier business bank and one of the region’s fastest growing companies, announced Gary Orr as the newest member of its Board of Directors. A third-generation banker with nearly 40 years of experience, Orr recently retired from Wells Fargo Bank, where he held a variety of leadership roles over the course of 32 years. He brings extensive experience in Investor Commercial Real Estate lending, having most recently led efforts to build relationships with CRE investors across the United States. Prior to that assignment, Orr led Wells Fargo’s middle market commercial banking teams for the Central Valley, including the Sacramento, Modesto, Stockton and North Valley Markets. As a member of the board, Orr will aid in River City Bank’s continued expansion efforts throughout California.

“It’s a pleasure to welcome Gary to the River City Bank board at a time when our home market in Sacramento is strong and our footprint in the Bay Area and Southern California continues to expand,” said Steve Fleming, President and CEO of River City Bank. “Gary’s extensive experience in many facets of commercial banking make him a valuable addition to the board, and we look forward to pairing his high-level insights with our nimble and client-centered approach to commercial banking.”

“On behalf of the entire River City Bank team, we are excited to welcome Gary Orr to the board,” said Shawn Devlin, chairman of the board at River City Bank. “For nearly four decades, Gary has been instrumental in the success of banks throughout the United States, and we look forward to incorporating his insights as we continue to capitalize on new opportunities for growth.”

“River City Bank is one of the best-run community banks in California, with an enviable record of financial performance, portfolio growth and community leadership,” said Gary Orr, board member at River City Bank. “Having recently retired from one of the nation’s largest banks, I’m intensely interested in learning more about the inner workings of one of the most successful community-based banks, and I look forward to helping the bank expand its business and commercial real estate lending efforts.”

A native of Pittsburgh, Pennsylvania, Orr earned his bachelor’s degree in business administration and economics from the University of Pittsburgh. For the past five years, Orr led a national team of specialized lending professionals as Wells Fargo’s EVP/Division Manager of Investor Commercial Real Estate for Middle Market Banking. In addition to commercial real estate, he also has significant expertise in lending to companies in many industry verticals including agriculture, distribution, manufacturing, retailing, transportation, ski resort areas and wholesaling.

Orr currently sits an independent director on several company boards and serves on the boards of three local non-profit organizations including the Society for the Blind, Easter Seals Superior California and the Capital Region Family Business Center. He is also a Senior Fellow with the Mountain Valley Chapter of American Leadership Forum.

For more information about River City Bank’s Board of Directors, visit RiverCityBank.com/board-of-directors.

September 10, 2019

Kelly Foundation awards $100,000 grant to MERISTEM, a learning program for young adults with autism

2019 Major Gift to expand theater program and parent education initiative

SACRAMENTO, CA – The Kelly Foundation awarded its 2019 Major Gift of $100,000 to MERISTEM, a non-profit program that uses experiential learning to help young adults on the autism spectrum become more socially and economically independent. The award constituted the Kelly Foundation’s largest single donation of the year and will be used to expand Meristem’s successful theater program, “Speak Up, Speak Out,” which uses improvisational performance techniques to empower students to participate in spontaneous conversation and a variety of social interactions. Funds from the grant will also be dedicated to the development of a series of parent education events, as well as bolstering Meristem’s independent living curriculum, which includes skill-building in financial literacy, cooking, cleaning and other pursuits.

“The Kelly Foundation is pleased to award this year’s Major Gift to Meristem as an investment in the expansion of its promising curriculum, which equips young adults on the autism spectrum with the skills to lead more independent lives,” said Shawn Kelly Devlin, President of the Kelly Foundation and Chairman of the Board of River City Bank. “Meristem has recorded tremendous growth in its first five years of operation, and we look forward to watching more families benefit from the program’s innovative approach to education, training and empowerment.”

“Our staff was in the midst of a training session when we received the call from the Kelly Foundation, and we were over the moon when it became clear that we’d secured the grant,” said Edmund Knighton, President of Meristem. “Our students and their families have always been our top priority, and we’re excited to leverage these funds to expand our parent education and support services, which will keep parents apprised of their student’s progress while also connecting parents with one another in community. We’ll also use some of the grant monies to enhance our improvisational theater program, which helps students develop their spontaneous speaking skills and is our most popular course.”

Knighton says the grant will be used for a variety of building improvements for Meristem’s theater program, including the addition of curtains and backdrops for the stage. Meristem’s staff also intends to bring performer Mickey Rowe, who was the first actor on the autistic spectrum to play an autistic role, back to the school to speak with students and parents about making a living and supporting a family. Rowe was the guest speaker at Meristem’s graduation ceremony in 2019, where he praised the theater program for its incorporation of improvisational techniques and for encouraging students to lead parts of the program. Within the theater program and other areas of the Meristem curricula, students have the opportunity to advance to positions of leadership and mentorship over time, sometimes to the point of leading full segments or even full classes.

The Meristem Method is based upon the principle of “doing to learn” (experiential learning). The five core areas of the curriculum are movement, land work, craftwork, independent living skills, and preparation to work, all accessed by real life experience. Students develop capacities and executive functioning through planning and executing tasks. Students may also apply their training in one of three social enterprises: the Meristem Model Bed and Breakfast, which is the only bed and breakfast in the country operated by young adults on the autism spectrum; the Meristem Herbal Products Company, which provides training in product creation, pricing, sales, packaging and shipping, marketing, website development, ecommerce and business reporting; and the Meristem Café and Bakery, which supplies an assortment of baked goods to the on-campus café and several offsite local businesses.

The Kelly Foundation supports health and human services, education, culture, environment and civic improvement through its funding. Each year, the Foundation provides approximately $400,000 in grants to organizations that support the Sacramento region. Since merging with the RCB Foundation in 2009, the Kelly Foundation, of which River City Bank remains a major contributor, focuses on giving back to the greater Sacramento region through charitable donations.

For more information about the Kelly Foundation, please visit KellyFoundationSacramento.org. For more information about Meristem, visit Meristem.pro.

About the Kelly Foundation

The Kelly Broadcasting Company’s KCRA-TV (Sacramento-Stockton-Modest, CA) went on the air on Sept. 5, 1955, and the owners of the Kelly Broadcasting Company established the Kelly Foundation in December 1988 as a formal vehicle for structuring charitable contributions. The Kelly family sold KCRA-TV in 1999 and have continued the Kelly Foundation ever since. In 2009, the River City Bank Foundation merged with the Kelly Foundation, and some executives of the Bank currently serve on the Foundation’s Board. Jon S. Kelly founded River City Bank and continues to support the Bank. His daughter, Shawn Kelly Devlin, currently serves as President and Chairman of the Board. The Kelly Foundation is an expression of the importance the Kelly family places on being a good neighbor and citizen in regions where they do business. For more information on the Kelly Foundation, please visit KellyFoundationSacramento.org or call (916) 978-4892.

About Meristem

MERISTEM, located outside of Sacramento, helps transition young adults on the autism spectrum to independent living, including college and career success. The Meristem Method uses experiential learning, and all coursework and activities incorporate hands-on, real-world experiences. Learn more at meristem.pro.

July 18, 2019

River City Bank reports net income of $6.5 million for the second quarter of 2019 and $12.4 million year-to-date

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $6.5 million, or $4.44 per diluted share, for the quarter ending June 30, 2019. This compares favorably to the $5.7 million, or $3.94 per diluted share, for the same period in 2018. Net income was $12.4 million, or $8.51 per diluted share, for the six-months ending June 30, 2019, which compares to the $11.3 million, or $7.76 per diluted share, for the six-month period ending June 30, 2018. The improved net income versus the prior year quarter was driven by:

Higher loan balances – Average loan outstandings were $192 million higher than the prior year quarter, thereby increasing net interest income.
Non-recurring income of $1.3 million – The Bank recorded an elevated level of prepayment penalty and deferred loan fee income on loans that paid off prior to their maturity and received interest recoveries from loans that were previously charged off.
Partially offsetting the above benefits to net income was a $750,000 increase in the provision for loan losses versus the prior year quarter. The increased level of provisions for loan losses was attributed to the Bank’s exceptional loan growth.

“We experienced solid growth of $147 million, or nine percent, in the first half of 2019 due to our excellent reputation in the commercial real estate loan market and the decline in long term interest rates,” said Steve Fleming, President and CEO of River City Bank. “Though our solid loan growth during the current quarter resulted in higher provision for loan losses, our asset quality remains exceptional. The ratio of nonperforming loans and Other Real Estate Owned to total gross loans of only 0.02 percent as of June 30, 2019, and we have reported net recoveries for more than four years. While the credit risk environment is benign today, we know from prior experience that it will change for the worse at some point, and we think it is prudent to maintain adequate loan loss reserves in anticipation of the eventual downturn.”

The loan growth has also been sufficient to mitigate the negative impact of the rise in short term interest rates and the flattening of the interest rate yield curve over the last year. After excluding the prepayment penalty and deferred loan fee income noted above, the Bank’s net interest margin declined from 2.73 percent to 2.67 percent for the six months ending June 30, 2018 and 2019, respectively.

“Operational efficiency remains a core competency for the Bank, as evidenced by our 40 percent and 42 percent efficiency ratios for the six months ending June 30, 2019 and 2018, respectively,” said Anker Christensen, Chief Financial Officer of River City Bank. “Over the prior year period, our focus on managing expenses continues to be made evident by our low efficiency ratio. This demonstrates our ability to grow profitably despite some net interest margin compression.”

Shareholders’ equity for River City Bank on June 30, 2019, increased $15.1 million to $224 million, when compared to the $209 million as of December 31, 2018. The growth was driven by increased retained earnings and accumulated other comprehensive income due to the decline in interest rates since December 31, 2018. The Bank’s capital ratios remain well above the regulatory definitions for being Well Capitalized. Common Equity Tier 1, Tier 1 Leverage and Total Risk-based capital ratios were 11.4 percent, 9.8 percent and 12.7 percent, respectively, as of June 30, 2019.