Page 11 – River City Bank

April 16, 2020

Kelly Foundation assists local food banks with $220,000 in total grant awards

Individual grant awards presented to five food banks including Sacramento Food Bank and Meals on Wheels of Alameda County

SACRAMENTO, CA – In response to the global coronavirus crisis, the Kelly Foundation awarded a total of five individual grants to Northern California food banks in Sacramento, Yolo, Alameda and Sonoma counties. The grant monies, representing $220,000 in total donations, will be used to secure and refrigerate food supplies, support community deliveries, and pay workers. Recipient organizations include Sacramento Food Bank & Family Services, Yolo Food Bank, Redwood Empire Food Bank, Alameda County Community Food Bank and Meals on Wheels of Alameda County, the latter of which serves food primarily to housebound elders who are among those at greatest risk from COVID-19.

“Access to food is a fundamental right, and the Kelly Foundation is pleased to support families throughout Northern California by awarding grants to five regional food banks serving some of the most at-risk populations,” said Shawn Kelly Devlin, President of the Kelly Foundation and Chairman of the Board of River City Bank. “As demand for these essential services continues to surge, it is imperative that we equip our food banks to meet needs and help our communities rise to the multitude of challenges presented by COVID-19 without sacrificing health and wellness.”

“COVID-19 has stressed our organization like never before, and we are sincerely grateful for this important funding from the Kelly Foundation,” said Melanie Flood, Director of Development and Communications for Sacramento Food Bank & Family Services. “Demand has skyrocketed, and we are seeing people in need who have never asked for assistance from a food program before. This funding will help us continue to purchase food, invest in supplies and equipment to keep pace with demand, and provide vital services while also planning for the next 60 to 90 days.”

“The Redwood Empire Food Bank normally serves 82,000 people per year, and we are projected to serve twice that number because of the COVID-19 crisis,” said David Goodman, CEO of Redwood Empire Food Bank. “This contribution will help us purchase and refrigerate food, pay our dedicated staff and fuel our trucks to make deliveries across Sonoma County. Ultimately, it will keep food on the table for thousands of people who need it.”

“Human lives literally will be saved because we received critical funding to ensure food access to vulnerable people,” said Joy Cohan, Director of Philanthropic Engagement at Yolo Food Bank. “The Kelly Foundation’s generosity will provide more than 10 days of nourishment for the more than 35,000 people experiencing hunger in Yolo County.”

In evaluating the needs of communities throughout its organizational and geographic footprint, the Kelly Foundation prioritized providers and allocated funds according to the total number of people and families served, as well as the urgency of the need. Sacramento Food Bank and Yolo Food Bank each received a grant in the amount of $75,000; Redwood Empire Food Bank received a $25,000 grant, Alameda Food Bank received $12,500 and Meals on Wheels of Alameda County was awarded a grant of $32,500.

The Kelly Foundation supports health and human services, education, culture, environment and civic improvement through its funding. Each year, the Foundation provides approximately $500,000 in grants to organizations that support the Sacramento and North Bay Area regions. 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.

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.

March 9, 2020

River City Bank Hosts 11th Annual Business Outlook Event

Crowd attending Steve Fleming presentation at Business Outlook Event 2023

River City Bank’s Business Outlook once again played to a packed house. With a lineup that included Chancellor Gary S. May of the University of California, Davis, and Beth Vaughan, Executive Director of the California Community Choice Association (CalCCA), the audience received a sneak peek into what’s in store for California at both the local and state level. Beth Vaughan spoke on CCAs continued ability to thrive as the demand for renewable energy rapidly grows in California. Chancellor May presented on the collaboration of UC Davis and local businesses to create both educational and economic opportunities in the Sacramento region through the Aggie Square project. RCB President & CEO Steve Fleming spoke on the strength of the Bank and his perspective on the economy.

Steve Fleming, Steve Mills of DCA Capital Partners, and Lon Burford of Genovese Burford & Brothers

Pat McHone of River City Bank with Larry Kelley and Frank Meyers of McClellan Park

Sheri Farinha of Norcal Services for Deaf & Hard of Hearing

Kennard Boutte’-Nears and Linda Bergaus of Life -Assist with River City Bank’s Donna Sutherland

Edmund Knighton talking with fellow attendee at Business Outlook Event

Edmund Knighton of Meristem

Barry Broome of the Greater Sacramento Economic Council

This year’s panel – UC Davis Chancellor Gary S. May, River City Bank’s Steve Fleming, and Beth Vaughan of the California Choice Association

Rick Brown, PhD of Terraverde Energy, Barry Vesser of the Climate Center, and Dan Jennejohn of River City Bank

River City Bank’s Jeremy Spencer with the team from Bender Insurance Solutions: Steve Bender, Heather Rohr, Maggie Bender-Johnson, and Lisa Bracero

March 8, 2020

Client Profile: Innovative Education Management (IEM)

Founded as Horizon Instructional Systems by Randy Gaschler in 1993, and later renamed Innovative Education Management (IEM) in 1998, IEM successfully develops and operates charter schools throughout the state of California. The company works with the local school districts to gain charter approval and is responsible for every aspect of managing the school. With three charters schools and approximately 6,800 students, currently under its umbrella, IEM’s mission is to ensure that every student has an individualized learning plan, and every parent has the opportunity to make as many decisions as legally possible that directly affect their children’s education.

We caught up with IEM’s CEO, Jodi Jones, to talk more about IEM and the future of charter schools.

What obstacles, if any, were encountered when IEM was first getting off the ground?

In the beginning, cash flow and public misperception due to a lack of knowledge about charter schools were a challenge. While increasingly more parents are choosing charter schools for their children, there are still many myths regarding school choice– and charter schools in particular– that continue to circulate.

What are the differences between charter schools and the traditional brick-and-mortar schools?

Charter schools are tuition-free public schools that are approved by a local school district, county office of education, or the State Board of Education. Charter schools range from pure personalized homeschooling models to traditional brick-and-mortar. Each charter school is unique based on the local community needs. Some charter schools have a specialized curriculum focus, such as performing arts, STEM, Montessori, homeschooling, and individualized hybrid models.

The distinct and unique characteristics of a charter school are described in their charter petition, which is typically submitted to a local school board for approval. IEM is an independent-study charter school, and it specializes in individualized education plans for every student. Our students are generally homeschooled and work closely with a certificated teacher to create a customized learning plan. We serve Pre-K through 12^th-grade students throughout California, from Butte County to Riverside County.

Front view of the South Sutter Charter Resource Center

South Sutter Charter Resource Center is slated for completion in July 2020

What percentage of charters schools in California are “independent-study” schools?

Nonclassroom-based charter schools account for approximately 22% of all charter schools in California. That’s around 290 schools of the 1350 charter schools. IEM constitutes roughly 5% of all nonclassroom-based students in California. The beauty of charter schools is that they are born out of a desire of parents, teachers, and community members to develop a school that meets the needs of their students in a way they felt was not offered elsewhere.

“Independent-study” charters like IEM have become havens for families who don’t want their children in traditional brick-and-mortar schools. What are the main reasons for their decision?

One reason could be is that the neighborhood’s public school is too hard, too easy, or just too crowded or impersonal. Along with wanting to control the pace of instruction, parents have become more and more concerned with bullying and safety in traditional schools. They have turned to independent-study charters to help alleviate these worries.

In the case of nonclassroom-based charter schools, parents are always looking for an innovative approach to education. They want flexibility in where and how their children are educated, and they want the ability to seek out experts to provide instructional support rather than relying on a single teacher to provide instruction in all academic subjects. This model of public education has also gained momentum with the rise in concerns about school safety, social issues, and behavioral health needs of students. IEM’s schools provide parents an environment where the academic needs of their children can be addressed without worrying about the social issues they faced in a traditional school. By delivering multiple tools, resources, and programs, IEM helps teachers and parents develop a personalized student success plan that will address their academic and social-emotional needs.

How many states permit charter schools?

As of 2018, all but six states allow charter schools. It is important to note that charter school operations look very different from state to state, based on the charter laws and education code of each location. Currently, under California law, the current cap on charter schools is 2,250 statewide, but the cap is raised by 100 schools each year.

What is currently in the works for IEM?

In Sutter County, a learning resource center is under construction for our South Sutter Charter School. The building will house meeting spaces and rooms for additional activities needed for our students, including science labs. We worked closely with the district to secure vacant land to build the Resource Center. The building is set to be completed by July 2020.

Why did IEM choose River City Bank?

We believe that local small banks provide more personal customer service. River City Bank is no exception.

IEM believes that by combining the concepts of parent decision making and individualized plans, it can help the student truly “experience learning.” To learn more about IEM, visit https://ieminc.org/.

February 26, 2020

River City Bank’s Commitment to Clean Energy

For the past ten years, River City Bank has been committed to making California a greener and cleaner place to live. We officially launched our Clean Energy Division in 2018 to support CCAs, clean tech and sustainable companies, as well as, finance renewable energy projects.

January 29, 2020

River City Bank reports an increase to the quarterly cash dividend on common shares

SACRAMENTO, CA — Steve Fleming, President and CEO of River City Bank (the Bank), announced that the Bank’s board of directors has approved an increase to the quarterly cash dividends from $0.28 per common share to $0.30 per common share. The increase was made in connection with the Bank’s recently reported net income of $5.8 million and $25.3 million, or $4.00 and $17.33 diluted earnings per share, for the quarter and year ending December 31, 2019, respectively. These quarterly cash dividends will be made to shareholders of record as of February 7, 2020, and payable on February 21, 2020.

January 28, 2020

River City Bank reports record net income of $25.3 million for 2019

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $25.3 million, or $17.33 per diluted share, for the year ending December 31, 2019. This was $1.3 million more than the $24.0 million, or $16.50 per diluted share, for the year ending December 31, 2018. The improved net income versus the prior year was driven by:

Higher loan balances – Average loan outstandings were $208 million higher than the prior year, thereby increasing net interest income.
Non-core income of $2.0 million and $496,000 for the years ending December 31, 2019 and 2018, respectively — In 2019, the Bank recorded an elevated level of prepayment penalty and deferred loan fee income on loans that paid off prior to their maturity; it also received interest recoveries from loans that were previously charged off.
Partially offsetting the benefits to net income was a $3.25 million increase in the provision for loan losses versus the prior year. The increased level of provisions for loan losses was attributed to the Bank’s exceptional loan growth.

Additionally, the exceptional loan growth required a higher provision for loan losses in the fourth quarter causing the Bank to report lower net income of $5.8 million or $4.00 per diluted share, for the three months ending December 31, 2019, compared to the $6.8 million or $4.67 per diluted share, for the three months ending December 31, 2018.

Steve Fleming, president and chief executive officer of River City Bank, commented “We are pleased to report our fourth consecutive year of record earnings in 2019, along with exceptional loan (21%) and deposit (24%) growth. We achieved this loan growth due to our excellent reputation in the commercial markets that we operate in throughout California and the decline in long term interest rates. Perhaps more importantly, we accomplished this loan growth without compromising our asset quality. Through our disciplined underwriting and consistency of monitoring the portfolio, we are reporting no non-performing loans as of December 31, 2019.”

The loan growth has also been sufficient to mitigate the negative impact of the rise in the Bank’s cost of funds as it grew deposits at an accelerated pace. After excluding the prepayment penalty and deferred loan fee income noted above, the Bank’s net interest margin declined from 2.70 percent to 2.64 percent for the years ending December 31, 2018 and 2019, respectively.

“Our management team is committed to growing the Bank in an operationally efficient manner as evidenced by maintaining an efficiency ratio under 40 percent for the years ending December 31, 2019 and 2018” said Anker Christensen, chief financial officer of River City Bank. “We have a highly productive group of employees at the Bank and managing expenses continues to be a priority for the management team.”

Shareholders’ equity for River City Bank on December 31, 2019, increased $28 million to $237 million, when compared to the $209 million as of December 31, 2018. The increase was driven largely by increased retained earnings. 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 11.1 percent, 9.5 percent and 12.3 percent, respectively, as of December 31, 2019.

January 21, 2020

File Your Taxes Before Scammers Do It For You

By Krebs on Security

It’s that time of year, tax-filing season, also known as the season fraudsters start requesting phony tax refunds in the names of identity theft victims. Want to minimize the chances of getting hit by tax refund fraud this year? File your taxes before the bad guys can!

Tax refund fraud affects hundreds of thousands, if not millions, of U.S. citizens annually. Victims usually first learn of the crime after having their returns rejected because scammers beat them to it. Even those who are not required to file a return can be victims of refund fraud, as can those who are not actually due a refund from the IRS. Read the full Krebs on Security article here, and learn more about how fraudsters file phony tax refunds and what you can do to protect yourself.

Should you have any questions about your bank accounts and services, please contact a River City Bank customer service representative at (916) 567-2899.

January 8, 2020

River City Bank Showcases San Francisco Office

People mingling at the River City Bank San Francisco office showcase

River City Bank shared its new San Francisco office with business colleagues as they hosted an open house event. Catered by our friends at Graze + Gather Co., guests enjoyed a grazing table filled with local artisanal fare and took in beautiful views of the city and the Transbay Terminal. RCB’s second office in the Bay Area, the San Francisco office, provides commercial banking services and houses the Bank’s growing Clean Energy Division. The Clean Energy Division focuses on servicing Community Choice Aggregation (CCA) clients, project finance, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals.

River City Bank’s Stephen Fleming talking with Maira Strauss of Marin Clean Energy

River City Bank’s Stephen Fleming with Maira Strauss of Marin Clean Energy

View looking over the Transbay Terminal park

Views of the Transbay Terminal

Dominick Carlson, Dan Franklin, and Xu Chen of River City Bank

Rosa Cucicea, River City Bank’s Clean Energy Division Manager

December 17, 2019

River City Bank announces employee bonuses of $2,500 to cap off record-setting year of profits

SACRAMENTO, CA — River City Bank, Sacramento’s premier business bank, celebrated a successful 2019 fiscal year by launching a special “Days of Giving” event for employees. During the 16-day event, which ran from November 25, 2019, to December 10, 2019, River City Bank employees participated in daily raffles with prize options that were selected to appeal to a diverse range of interests for techies, foodies, outdoor enthusiasts, sports fanatics and shoppers. On the final day of the event, the Bank awarded a $2,500 cash bonus to every employee, up to and including the Vice President level. All employees received a River City Bank branded gift bag on the final day of the event, filled with a variety of gifts including an Arc’teryx jacket, a YETI^® mug and other premium items.

“We continue to establish new high-water marks in asset size and net income each year as a direct result of our incredible employees and their exceptional customer service, dedication, intelligence and integrity,” said Steve Fleming, President and CEO of River City Bank. “Reaching the $2.4 billion mark in total assets is a significant accomplishment, and we look forward to even more success in the future.”

“River City Bank is an amazing place to work,” said Carrie Coppage-Feld, Premier Relationship Manager. “The employee-centric focus of our leadership team motivates our team to continued growth and expansion each year while setting the bar high for other organizations to follow.”

The community-based bank recently reported a record-setting $2.4 billion in total assets and year-to-date net income of $19.5 million as of September 30, 2019. Headquartered in Sacramento, the Bank maintains 11 branch locations throughout the region, as well as corporate offices in San Francisco and Walnut Creek.

October 23, 2019

Protecting Yourself from Phishing

Person in front of a laptop holding a mobile phone

As the gift-giving season approaches and shoppers start to plan out their online shopping strategies, cybercriminals begin ramping up their activity. Some of us have learned, the hard way, that the holidays have a way of bringing out individuals who happily profit by preying on others. Thieves are generally after two things: money and things they can turn into money, including gaining access to your private information.

Phishing is a scam that uses email to deceive you into disclosing personal information. Cybercriminals send thousands of emails, hoping to trick individuals into falling for their scams. For example, an email may appear to come from River City Bank, but it does not. It may sound urgent and warn you to update or verify your bank information by clicking on the link contained in the email. These emails are fake and do not come from River City Bank. No bank, including River City Bank, will ever ask you to provide confidential banking information through an email or link.

Phishing Examples and What You Should Do:

The criminal sends an email purportedly from a member of your business or one of your suppliers and requests you to wire funds. Before you react, pick up the phone and obtain verbal verification from your contact using the phone number you have on file, not one that may have been provided by the criminal.

If you get an email that warns you that an account of yours will be shut down unless you reconfirm personal information, or that the bank is “missing” information about your account, do not reply or click on the link in the email. To confirm if a River City Bank email solicitation is legitimate, please call our Customer Service Center at (916) 567-2899.

For additional security tips, how to limit unwanted calls and emails, and recent scam alerts, visit the Federal Trade Commission’s website dedicated to consumer protection at www.consumer.ftc.gov.

Again, keep in mind that River City Bank will never ask for your personal information by email or text. Your personal and financial security is our top priority. Should you have any questions or concerns regarding your account information or communication you have received from River City Bank, please do not hesitate to reach out to a customer service representative at (916) 567-2899 or (800) 564-7144.