Page 13 – River City Bank

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.

July 17, 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 $6.5 million, or $4.44 diluted earnings per share, for the quarter ending June 30, 2019, a cash dividend of $0.28 per common share to shareholders of record as of July 30, 2019, and payable on August 13, 2019.

July 1, 2019

River City Bank Sponsors EGACT Annual Dinner

River City Bank celebrated alongside the Elk Grove Adult Community Training (EGACT) at their annual dinner. As a proud sponsor of EGACT, members of the RCB Team lent their support to this non-profit organization that provides education and training for adults with developmental disabilities. Proceeds from the event help fulfill EGACT’s mission to ensure equality, dignity, and the fulfillment of rights of all program participants.

As an Elk Grove community stronghold, EGACT has served adults with developmental disabilities since 1972. They currently have program sites located in Elk Grove and Galt.

To learn more about EGACT, visit their website at www.egact.org.

July 1, 2019

RCB Summer Reading List

As the temperatures start climbing and summer vacations begin, we start reaching for new and engaging reads to enjoy. Read on to learn what titles RCB staff are currently enjoying.

The reason I chose this book: The title. I’m about halfway through (pretty dense content!). The authors’ argue through historical case studies, that the role of institutions largely determines a nation’s economic success. If you like economics and history, this is a great book for you!

Rob Leet
Credit AnalystWhy Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu & James Robinson

The reason I chose this book: I heard it was much like the book “The Goal” by Dr. Eliyah M. Goldratt, which has been called one of the most influential management books of all time and is one of my favorites. I also wanted to better understand more about what an IT team typically tackles and how they interact with other departments within an organization, especially as it relates to projects and process improvement. If you have ever been in a situation where you felt there was not enough time or enough resources, too many competing priorities and agendas, etc. then you will definitely benefit from reading this book.

Bryce Lund
Operations Project Manager/ AVPThe Phoenix Project by Gene Kim, Kevin Behr, and George Spafford

The reason I chose this book: It’s a really original and beautiful sci-fi novella about a woman from the Himba people of North Western Africa who is accepted into the finest institution of higher learning in the galaxy.

Jessica MisquezLoan Operations SpecialistBinti by Nnedi Okorafor

The reason I chose this book: I’m re-reading this book and have read it several times since being introduced to it in college. It was the first book that I felt was written just for me. It focuses specifically on the complex relationship between Asian immigrant mothers and their Asian-American daughters and their strong bond, despite generational and cultural conflicts. It depicts the fierceness of women, young and old, their bravery, and the perseverance that binds them all.

Tess GeeMarketing Project Manager/AVPJoy Luck Club by Amy Tan

The reason I chose this book: This book was chosen as Alastair Reynolds is one of my favorite sci-fi authors. It takes place 500 years in the future when humankind is spread throughout the stars. It tackles a number of issues, including what it means to be “human” in environments that are very different from what we experience today on Earth. The story is very complicated and full of twists and turns, which makes it a very challenging and exciting read!

Jeremy SpencerInternal Audit Manager/VPRevelation Space by Alastair Reynolds

The reason I chose this book: I love reading crime novels that have unpredictable plots. The author Lars Kepler is unique. Kepler is actually a husband and wife team authoring books under one moniker. I don’t have a more in-depth reason for picking it up other than I love to read. It is my passion and has been since I picked my first book off the shelf of my dad’s den.

Shirleen HassianCompliance Risk Manager/SVPThe Sandman by Lars Kepler

July 1, 2019

Meet Pat Lewis

Pat Lewis is the EVP/Chief Operating Officer of River City Bank and is responsible for the daily operations of the Bank. Pat has been with the bank for over 17 years and appreciates the collaboration and strong work ethic of her colleagues at RCB. She spoke candidly with us about her ardent admiration for her father, her fondness for Beantown, and how a cheese board and a cool beverage can erase the stressors of a long day at work.

Hometown: Houston, TX is where I grew up, but I’ve spent most of my adult life in Sacramento. Home is where the heart is!

First Job: K-Mart Customer Service Desk. I learned some great customer service survival skills (listening, communication, multi-tasking, maintaining a poker face, etc.), especially the day after Christmas, and whenever I had to run the “Blue Light Special.” A flashing blue light still elicits a fight or flight response from me.

First Car: 1980 Firebird Formula with T-Top, until it was taken away. That’s a story for a different time and place.

Favorite Quote: “Be humble, be hungry, and be the hardest worker in the room.” Dwayne Johnson

Favorite Movie: Breakfast at Tiffany’s – Who doesn’t like the GOAT, Audrey Hepburn?

Favorite Song: Imagine by John Lennon – Sometimes the lyrics hit me just right and are so poignant that I get emotional with the hope that someday we could all imagine…

What are you reading right now? The Moment of Lift by Melinda Gates is next in queue.

Favorite place in Sacramento: Ella Dining Room & Bar – The Artisan Cheese Board paired with The Real Gin and Tonic make even the toughest days a bit easier.

First site or app you check in the morning: I literally start my day by rolling over and grabbing my phone to scan email and text messages. I assure you, there is no such thing as banker’s hours, and stuff happens 24×7 in banking!

Pat Lewis and her family

Favorite city to visit: Boston – great history, lots of culture, awesome food & beverages, and who can resist Fenway!

If you have an extra hour in the day, how would you spend it? I would spend it having breakfast with my boys (dad, husband, and son), listening to their stories, and laughing my booty off.

Who is your favorite hero/heroine of fiction? Katniss Everdeen because she stands up for her beliefs and is a real bad***.

What is something people would be surprised to know about you? I love to sing. Unfortunately, I can’t carry a tune, but I’m the best ever when I sing along with the radio in my car. Don’t be scared if you see me on the road, mouth moving fervently, and be-bopping along. It isn’t road rage. It’s just me thinking that I can win a Grammy someday.

What is your idea of perfect happiness? Playing games with my family & friends – This usually is accompanied by lots of eating, drinking, and merriment. I particularly enjoy that we can be obnoxiously competitive and still love each other when the game is over.

What did you want to be when you were a child? Foreign news correspondent – It seemed very adventurous, romantic, and most of all relevant. I loved watching Walter Cronkite and Barbara Walters with my parents and talking about world events.

What is your greatest fear? That it is my carpool day and I’ve forgotten the children.

Which living person do you most admire? I am wonderstruck by my father. He led six tours of duty, retired from the military with honors, completed his undergraduate degree (Phi Beta Kappa) and MBA while working full time, retired, again, from the private sector, and NEVER missed a family event. He is a fierce leader with a heart of gold, and I’m proud to be daddy’s girl!

What causes are you supporting at the moment? 1. Youth Sports – It builds character and teaches our young men and women quite a few life skills: working hard, leadership, being a team player, and overcoming adversity, just to name a few. I’ve watched my son and his teammates become fine young men because of their role models and experiences. 2. Climate Change – Let’s get real, and all do our part. If not, we won’t have a planet left for our youth to enjoy.

What is your greatest extravagance? Sleeping in, which doesn’t really happen with my schedule.

What is your current state of mind? Blessed – Not to be cliché, but it’s a wonderful life. I’ve got a supportive and loving family, fantastic friends, and a career that still keeps me jazzed every day.

What do you consider the most overrated virtue? Patience – If it needs to be done, just do it.

What was the best piece of business advice you were given when you were starting out? Be a duck and let it roll off your back. You can’t please all people, you won’t always be right, and things sometimes don’t go your way. Shake it off and move on.

What do you like best about working at River City Bank? I appreciate that I get to work with the best bankers in the business. We’re all built with the same value structure, and we’re drivers that propagate River City Bank’s vision to be the premier commercial bank in California. My colleagues are collaborative, supportive, and competitive. We’re a team that loves to win!

July 1, 2019

Customer Alert: Social Security Number Scam

A nice sounding professional calls from the government and reports that your Social Security number has been suspended, and with a little bit of information, they will reactivate it for you. Sounds okay right?

Wrong!

This is a common phone scam that people have been receiving lately. A caller or robocall will pretend to be a government official and state that your Social Security number has been suspended or deactivated due to fraudulent or criminal activity. The fraudster will then ask you to call a phone number to clear up the situation by simply providing some personal information. The fraudsters are trying to trick you into providing information such as your birth date, bank account numbers, social security numbers, and other sensitive information.

While the initial call may sound scary, remember your Social Security number cannot be suspended or deactivated. Below are a few tips to protect you from this phone scam and other variations of this scheme.

Your Social Security number cannot be suspended or deactivated.
The Social Security Administration will never threaten to arrest you.
Never give out or confirm your personal information over the phone, via email, or on a website until you have fully verified who is asking for the information. Contact government agencies directly using phone numbers and website addresses you know to be legitimate.
Remember, the government normally contacts people via postal mail. Unfortunately, mail scams are a common occurrence as well, and the same security precautions should be used with postal mail. Mail should be scrutinized and information validated before calling a phone number or visiting a website listed on the letter.
Do not trust a name, phone number, or email address just because it sounds connected to the government. Fraudsters use sophisticated tools, such as fake caller ID and email addresses, to impersonate government officials.

Should you receive a scam phone call, do not provide any information and hang up immediately. You can report the call to the Federal Trade Commission at www.ftc.gov, so they are aware of current phone scams taking place.

Safeguarding your personal information is not just important, it’s vital to your business and ours. Should you have any questions about phone scams or protecting your financial information, please do not hesitate to reach out to a Customer Service Representative at (916) 567-2899 or (800) 564-7144 or by email at [email protected].

July 1, 2019

RCB Charity of Choice: The Sacramento Tree Foundation

In connection with our biennial Client Appreciation event in September, River City Bank selects one organization as the focus for our charitable fundraising, the Charity of Choice. The Charity of Choice receives a $5,000 donation from the Bank plus proceeds raised by RCB employees through fundraising activities including Jeans Day and bake sales. This year, we are pleased to announce the Sacramento Tree Foundation is the Bank’s Charity of Choice. The Sacramento Tree Foundation is a community benefit organization working to build healthy, livable communities in the Sacramento region by growing the best urban forest in the nation.

Recently, Sacramento Tree Foundation’s Executive Director, Ray Tretheway, stopped by RCB’s Corporate office to give a brief presentation on the foundation and the impact they have on our community. He discussed the organization’s current plans to plant and steward 5 million new trees region-wide. Of which, one million trees are targeted for under-resourced, low tree canopy neighborhoods. For nearly 40 years, the Sacramento Tree Foundation has witnessed and fostered what Tretheway has called, “a community-wide renaissance on how residents see and value trees.” It’s continuing work will be felt for generations to come.

To find out how you can volunteer or learn more about the Sacramento Tree Foundation, visit their website at www.sactree.com.

July 1, 2019

Client Profile: The Sacramento SPCA

With leashes in hand and shoes laced up, River City Bank joined the Sacramento SPCA at their 2019 Doggy Dash. A beautiful spring day accompanied RCB employees and their families as they came out in full force to show their support. The event drew more than 5,000 participants, and RCB was proud to be one of the largest groups in attendance. The event raised more than $164,000 to help provide direct care and safe refuge for thousands of animals. However, this event is just a small part of what the SPCA contributes to our community. We sat with Kenn Altine, Chief Executive Officer of the Sacramento SPCA, to find out more about this worthwhile organization that not only shelters and cares for animals, but one that is also helping people who love animals.

The SPCA has been around for 127 years. How much has changed since they opened their doors in 1892?

The SPCA was founded in the late 1800s and incorporated as a non-profit organization in 1927. Though the role of the Sacramento SPCA in our community has evolved over the years (from originally being involved in investigating and enforcing laws surrounding animal cruelty cases and complaints), our mission has remained the same – providing homeless animals with individual comfort, shelter, and love. We provide compassionate medical care to tens of thousands of animals annually and offer a variety of programs and services designed to keep people and pets together for life.

The Sacramento SPCA provides more than shelter and medical services to animals. What services do you offer that most folks would be surprised to hear?

Most people identify animal shelters as a place where stray and homeless animals are housed and also adopted to new families. While we certainly do house stray and homeless animals, as well as find them new homes, we do give much more than shelter to the animals and people in our community. We serve the entire Sacramento region as a premier provider of low-cost spay/neuter services, collaborating with local rescue groups, feral cat caregivers, those in need, and the public to alter more than 18,300 animals in 2018. Additionally, 16,200 low-cost and no-cost vaccinations were provided to the community, 1,200 animals received low-cost veterinary exams and more than 3,600 sick, injured, and homeless animals found new homes through the shelter’s adoption facility. An active humane education program reaches over 7,000 children each year, and a dog training program gives advice and training to more than 3,000 adults each year. We reach out to seniors as hundreds are visited under the pet-facilitated visitation program, and thousands receive free vaccinations for their pets. Over 800 volunteers augment the care for the thousands of unwanted, abused and injured animals that seek shelter at the Society and help with special events

Sacramento SPCA CEO, Kenn Altine, enjoys a comforting moment with cat Tomasina prior to her surgery in the shelter’s spay & neuter clinic.

Sacramento SPCA CEO, Kenn Altine, enjoys a comforting moment with Tomasina prior to her surgery in the shelter’s spay & neuter clinic.

Where do most of your animals come from?

Because we are the only owner-surrender facility in the Sacramento region, the majority of animals housed and adopted through the Sacramento SPCA begin their journey with us after being surrendered by their owner(s). There are many reasons why an individual or family would decide to surrender their animal, most of which are related to housing, veterinary costs, other financial reasons, pet behavior, separation/divorce, or original owner passed away, and the other family members cannot care for the pet.

To help more animals in our region and the surrounding communities, the Sacramento SPCA also regularly transfers animals in from other overburdened shelters. The relocation of these pets not only allows the overburdened shelter to have open kennels for incoming animals but gives the pets transferred the opportunity to find loving homes in a new environment. In 2018, the Sacramento SPCA transferred in 438 animals from other shelters, including animals from the Sacramento City & County shelters, as well as areas impacted by Hurricane Michael and the Camp Fire. So far this year, we have already transferred in more than 300 animals, putting us on track for 600 transfers in 2019.

Team River City Bank at the 2019 Doggy Dash

Team RCB at the 2019 Doggy Dash (photo credit: [email protected])

Besides the Doggy Dash, what other fundraising events happen throughout the year?

We host three signature events annually, more than a dozen smaller events, and participate in a multitude of other community partner-hosted events throughout the region. Our signature events consist of: The Doggy Dash 2k/5k walk and pet festival each April, held at William Land Park; our fall gala, held at the Sacramento SPCA (this year on October 26th) and the Jingle Bell Pup Crawl in December (December 14th this year), which begins at Midtown’s Truitt Bark Park in partnership with a handful of local breweries.

We also regularly host “Yappy Hours” at local breweries throughout Sacramento. These are great opportunities for the community to join us with their pup to enjoy brews, food, raffle prizes and fun (including meeting adoptable dogs) – all to benefit the animals at the Sacramento SPCA. In addition, during the summer months, we host several “Splashy Hours” at The Animal Den Pet Resort & Spa, where people and their pups can have fun escaping the summer heat.

For more information about all our events, visit sspca.org/events.

What advice would you give someone looking to adopt a pet?

If you are like most of us, falling in love with a pet is easy. Pets give us unconditional love and loyalty, and they provide constant companionship. Adopting a pet, however, is a big decision. Dogs, cats, and small animals are living beings that require a considerable amount of time, money, and commitment — more than 15 years’ worth in many cases. Pet ownership can be rewarding, but only if you think through your decision before you adopt. Things to consider before adopting would be:

How much time do you have for a pet?
Can you afford a pet?
Can you have pets where you currently live?
What pet is right for you?
Other Considerations – Depending on the age and behavior of the animal, can you commit your time and money to support ongoing training? Also, who will care for the pet while you are away on vacation or business?

Why did the Sacramento SPCA choose River City Bank?

When we decided to change banks, we had three “set-in-stone” requirements. The first is that the bank had to be financially strong with a track record of managing the accounts and activities of a business. In addition to being a non-profit, we are also a medium-sized employer, run a retail store (our Adoptable Goods thrift store) and have all the accounts payable and receivable associated with any business. Second, we wanted the bank to be local. We are a local organization (not affiliated with the ASPCA or other regional and national groups) and wanted a local partner. Finally, we needed the bank to be invested in the community – not necessarily through donations to animal groups (although that is a plus), but involved in giving their time and their donations to the Sacramento region.

RCB hit all three of those with a proven track record in each, while also aligning with our organization’s mission and core values. While other banks we interviewed offered low or no fees on the services we needed, RCB took the approach of helping us succeed as a business. They also came up with a proposal to help make our money work harder for the animals. We could not be happier with the choice nor the experience we have had as a member of the RCB business family.

April 22, 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 $5.9 million, or $4.07 diluted earnings per share, for the quarter ending March 31, 2019, a cash dividend of $0.28 per common share to shareholders of record as of April 30, 2019, and payable on May 14, 2019.