Page 14 – River City Bank

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $5.9 million, or $4.07 per diluted share, for the quarter ending March 31, 2019. This compares favorably to the $5.5 million, or $3.82 per diluted share, for the same period in 2018. The improved net income versus the prior year quarter was driven by higher loan balances.

“We experienced solid growth of $67 million, or 4.2 percent, during the first quarter,” said Steve Fleming, President and CEO of River City Bank. “We are also pleased with the progress of our Clean Energy Division, which continues to open up new opportunities for us to expand our customer base. Our asset quality continues to be exceptional, with the ratio of nonperforming loans and Other Real Estate Owned to total gross loans of only 0.05 percent as of March 31, 2019.”

The loan growth has also been sufficient to mitigate the negative impact of the rise in short term interest rates over the last year and the flattening of the interest rate yield curve. The Bank’s net interest margin declined from 2.75 percent to 2.67 percent for the quarters ending March 31, 2018 and 2019, respectively.

“Operational efficiency remains a core competency for the Bank, as evidenced by our 42 percent efficiency ratio for the quarter ending March 31, 2019,” said Anker Christensen, Chief Financial Officer of River City Bank. “Though our total non-interest expense has increased over the prior year quarter, our focus on managing expenses continues to be made evident by our continued low-efficiency ratio. This demonstrates our ability to grow profitably even though we are experiencing some net interest margin compression.”

Shareholders’ equity for River City Bank on March 31, 2019, increased $7.1 million to $216 million, when compared to the $209 million as of December 31, 2018. The growth was driven 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 11.6 percent, 9.7 percent and 12.9 percent, respectively, as of March 31, 2019.

Established in 2017, Clean Power Alliance (CPA) has quickly become the largest CCA in the nation. CPA currently serves over 900,000 homes and roughly 3.5 million people throughout Southern California. Beginning in May 2019, CPA will also provide clean energy to approximately 130,000 businesses as well.

As a Community Choice Aggregator (CCA), Clean Power Alliance is a government entity that purchases clean power directly on the open energy market and delivers it to consumers on existing Southern California Edison (SCE) power lines. Originally established as a joint powers authority with unincorporated Los Angeles County, Rolling Hills Estates, and South Pasadena as founding members, it quickly grew to a coalition of 31 agencies across Los Angeles and Ventura Counties.

Choice and Growth

For more than a century, Southern California Edison had been the region’s dominant electric utility. But for nearly a million homes across Southern California, the days of Edison’s monopoly are coming to an end. Clean Power Alliance and other CCAs are offering a cleaner option and bringing competition on a larger scale. CPA offers consumers three energy options at three price points: Green (100 percent renewables), Clean (50 percent renewables), and Lean (36 percent renewables.) Consumers can decide their level of investment in clean energy.

Communities join because it is a platform for environmental protection and combatting climate change, and because cities have their own local sustainability goals. They also join because they are given a choice on how their energy is sourced. Clean Power Alliance also reinvests funds in innovative projects and programs within the communities they serve.

“The benefits of removing the monopoly system are that it brings innovation and lower rates,” said Ted Bardacke, Executive Director of Clean Power Alliance. “People want choice and the idea that if they can save money and be a little greener, or pay a bit more and be a lot greener, appeals to consumers.”

Creating a Strong Foundation

Before Clean Power Alliance was born, Bardacke knew there were things he needed to get right to build a thriving CCA. Although CCAs have been around Northern California since 2010, they are a relatively new concept in Southern California. Ensuring there was a robust infrastructure in place, the organization set high standards for its employees, officers, and directors. Along with strong corporate governance, Bardacke and his team took their time hiring experienced staff and figuring out how the agency is organized to ensure a secure future.

“We spent a lot of time hiring staff who knew what they are doing and to keep the place running,” said Bardacke.

According to Bardacke, by 2020 the Clean Power Alliance is set to take in over $800M in annual revenue. He attributes this success to applying the organization’s best practices and creating a framework of tools and techniques that identify, assess, mitigate, and monitor risk within the organization. Nothing is built at breakneck speed, and policies are carefully and thoughtfully considered.

“We want to make sure that we don’t get out over our skis,” said Bardacke. “It requires a lot of work to be conservative and disciplined.”

CPA turned to River City Bank for its financial needs. Bardacke knew that River City Bank has taken a bold lead in the clean energy space, supporting CCA clients throughout California with their depository, cash management, and lending needs. He has seen RCB provide other CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing, and custodian “lockbox” accounts.

“We know that River City Bank understands the CCA business and is comfortable in the space,” said Bardacke. “They are entrepreneurial without being bureaucratic. They understand what it takes to start this type of business, and we appreciate working with people who get that mindset. I know that I can call Steve Fleming directly and get something done.”

What’s In Store for Clean Energy

With talks about a “Green New Deal” which includes a 100% reliance on renewable energy, mitigation of climate change, and increasing green jobs, CCAs like Clean Power Alliance will be right in the middle of the action.

“There will be a change in a systemic and personal level when it comes to where Californians get their energy,” says Bardacke.

Since 2010, CCAs have given customers the ability to directly influence their community’s energy options by giving them the power to choose how and where they buy their electricity and natural gas. In light of California’s Senate Bill 100 which requires California to get 60% of its electricity from renewable sources by 2030 and to eliminate the burning of fossil fuels for electricity by 2045, CCAs are very likely to grow in prominence in the coming years. Gradually, it could mean incentives for customers to install electric water or space heaters, reducing the need to burn natural gas. It might pave the way for free or discounted electric vehicle chargers or special electricity rates that encourage people to charge their electric vehicles at home.

In the clean energy arena, there will be new players and opportunities. The state continues to be open to innovation and technology that will help eliminate the use of fossil fuels in the next few decades.

“In California, this idea of bold and ambitious goals based on local priorities has been successful across the board,” Bardacke says. “Everything we’re experiencing right now is what the other CCAs (community choice aggregators) have experienced around the state.”

To learn more about Clean Power Alliance visit their website at www.cleanpoweralliance.org.

Your car, phone, house, and valuables are locked when not in use. What about your debit card? With the new Card Controls and Alerts feature in consumer Mobile Banking, you can control how, when, and where you use your River City Bank Debit Mastercard. It’s a simple, secure way to manage and monitor your payment and transaction activity. Best of all, River City Bank debit cardholders will have access to this feature at no additional cost!

24/7 Control Right at Your Finger Tips:

Turn your cards on and off in real-time
Control where your debit card can be used by selecting authorized zip codes or blocking international transactions
Control the types of merchants where you use your card, such as in-store or online
Receive instant push notification alerts on your phone when your debit card is used

Did you forget your debit card at a store? Turn it off.

Are you shopping around the neighborhood? Set the debit card to only work in the region where you are shopping.

Someone in another state or overseas just used your debit card? Turn it off and then immediately notify River City Bank of the fraud.

A simple and secure way to protect you from fraudulent transactions, the alert feature provides real-time transaction alerts with a whole new level of control.

For existing consumer mobile banking users, enable these features through the “More” button at the bottom of the app. Not a Mobile user? Download the River City Bank consumer app today from the Apple App Store, or the Google Play Store.

At River City Bank, your personal and financial security is our top priority. If you have questions or concerns, please call a customer service representative at (916) 567-2899 or (800) 564-7144 or visit your nearest branch.

To learn more, read the FAQs about Card Controls and Alerts.

Regional-Business-Outlook-Crowd-e1556819814445

River City Bank hosted business clients and community leaders at its annual Regional Business Outlook Event on February 6th. The exclusive event featured presentations on key business topics from noted business leaders and industry experts. River City Bank President and CEO, Steve Fleming, also shared a look at the Bank’s 2018 successes and his perspective on the local economy. 2019 marks the 10th year of this highly-anticipated event as it continues to provide industry and local insight on a variety of topics.

Discussion topics included eCommerce, real estate, and the medical biotechnology industry, and this year’s panel of speakers included: Benjamin Conwell, Senior Managing Director and Global Practice Leader of Cushman Wakefield; Cate Dyer, Founder and CEO of StemExpress; and Greg Paquin, Founder and President of the Gregory Group.

RCB is excited to see what the upcoming year brings. Plans for the 2020 event are already in the works.

River City Bank’s Pat Lewis with Toni Dwyer of DesCor Builders

Regional Business Outlook Speakers: Greg Paquin of the Gregory Group, Cate Dyer of StemExpress, Steve Fleming, and Benjamin Conwell of Cushman & Wakefield

Lina Fat of Fat Family Restaurant Group with Stacy Paragary of Paragary Restaurant Group

Charice Huntley of River City Bank

Steve Fleming addresses the crowd

A question from Samuel Smalls of George K. Baum & Company

Nitish Sharma of the City of Davis, Steve Fleming, Dennis Kauffman and Scott Alvord of the City of Roseville, with River City Bank’s Janette Moynier and Rosa Cucicea

Rick Wylie of Villara Building Systems, Jim Hendersen of Cardinal Realty Finance, and Mike Paris of BlackPine Communities

Steve Bender of Bender Insurance Solutions with River City Bank’s Chairman of the Board, Shawn Devlin, and Steve Boutin of Boutin Jones

As the saying goes, it takes a village. Creating a successful bank thrives on different perspectives and skills, the interchange of ideas, and collaboration. At the 2019 River City Bank All-Staff meeting, we honored those who understood our vision, stuck to our core values, and embraced challenges while finding solutions.

Here is a list of this year’s awardees:

Rookie of the Year: Stephanie Hayworth

Top CSR: Katrice Jacobs

Department of the Year: Cash Management

Exceptional Service: Tracy Mullen

Branch of the Year: Davis

Team Player – Branch: Riley McFall

Team Player – Corporate: Megan Jimenez

Above and Beyond: Jeremy Spencer

Excellence in Credit Underwriting: Nina Anderson

Branch All-Star: Carolyn Spellman

Top CRA Contribution: PD Asp

Initiative: Jennifer Ballard

Consider it Done: Dominick Carlson

Branch Leadership: Veronika Zelinsky

Brand Ambassador: Janette Moynier

Key Contributor: Ken Imwinkelried

Life Time Achievement: Jay Murray

Life Time Achievement: Carol Roe

Patty Plytas and Herita Singh

P.D. Asp, Jeremy Spencer, and Shelly Haughton

Ariana Lepe, Nicole Laguerta, and Daniel Harrison from RCB’s Woodland Branch

RCB’s Howe Branch Team (clockwise from top): Mitchell Salvador, Doris Harrison, Alejandra Vera, Carolyn Spellman, and Erin Brooks

Steve Fleming (middle), President & CEO, congratulates Lifetime Achievement Award honorees Jay Murray (left) and Carol Roe (right)

Olga Tkach and Julia Lorensen of RCB’s Sunrise Branch

(From left to right): Adrienne Evans, Liz Truong, Becky Yang, and Liz Wooldridge

River City Bank’s Premier Banking Team (from left to right): Tracy Mullen, Amanda Semeryuk, Janette Moynier, and Donna Sutherland

San-Francisco-Golden-Gate-Bridge-e1556819258332

River City Bank has expanded its presence in the Bay Area with the establishment of a new office in the Financial District of San Francisco. This new location provides commercial banking and project finance services and houses the Bank’s Clean Energy Division. The group, headed by Rosa Hilmarsdotter Cucicea, Vice President & Clean Energy Division Manager, is focused on servicing Community Choice Aggregation (CCA) clients, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals. This addition marks the second Bay Area location for River City Bank, which opened a commercial banking office in Walnut Creek in 2015.

“After hitting a record number in assets and creating our new Clean Energy Division, we’re excited to open a second commercial banking office in the Bay Area,” said Steve Fleming, President and CEO of River City Bank. “The new office is a key component of our strategy to expand our focus and presence throughout California.”

The Bank has taken a bold lead in the clean energy space, supporting CCA clients throughout California with their depository, cash management, and lending needs. Notable clients include Valley Clean Energy in Yolo County, Clean Power Alliance of Southern California, Marin Clean Energy, Silicon Valley Clean Energy, Monterey Bay Community Power and East Bay Community Energy. River City Bank provides CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

Premier California business bank expands footprint, deepens ties in Bay Area

SACRAMENTO, CA — River City Bank is expanding its presence in the Bay Area with the establishment of a new office in the Financial District of San Francisco. This new location provides commercial banking and project finance services, and houses the Bank’s Clean Energy Division focused on servicing Community Choice Aggregation (CCA) clients, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals. This addition marks the second Bay Area location for River City Bank, which opened a commercial banking office in Walnut Creek in 2015.

The expansion is a natural progression of the bank’s shift from being primarily a Sacramento-centric consumer-oriented bank to focusing on commercial banking throughout California, and it comes after a series of significant milestones. In 2018, River City Bank grew to more than $2.2 billion in assets and launched the new Clean Energy Division under the leadership of Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager.

The new office is located at 201 Mission Street, Suite 1300, in San Francisco, and can be reached at (415) 293-4200. For more information on River City Bank, visit www.rivercitybank.com.

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 $0.26 per common share to $0.28 per common share. The increase was made in connection with the Bank’s recently reported net income of $6.8 million and $24.0 million, or $4.67 and $16.50 diluted earnings per share, for the quarter and year ending December 31, 2018, respectively. These quarterly cash dividends will be made to shareholders of record as of February 6, 2019, and payable on February 20, 2019.

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $24.0 million, or $16.50 per diluted share, for the year ending December 31, 2018. This was $7.3 million more than the $16.7 million, or $11.52 per diluted share, for the year ending December 31, 2017. The Bank’s earnings for 2018 were higher due to organic growth, as well as lower taxes from the Tax Cut and Jobs Act that was passed at the end of 2017. Earnings in 2017 were impacted by a one-time, non-cash charge of $4.6 million, or $3.18 per diluted share, in the fourth quarter of 2017. The charge was related to the re-measurement of the Bank’s deferred tax assets arising from a lower corporate tax rate. In addition, the 2017 results benefited from a pre-tax $3.5 million gain on sale of an Other Real Estate Owned property and a $765,000 mark to market gain on interest rate swap contracts.

“We are very proud to have finished 2018 with record earnings, significant growth in our customer base, and the successful opening of our loan production office in downtown San Francisco,” said Steve Fleming, President and CEO of River City Bank. “The new office and the recent launch of our Clean Energy Division will provide us with new and additional opportunities to serve the thriving Bay Area marketplace.”

The Bank experienced solid growth in its balance sheet in 2018, as evidenced by 9.6 percent loan growth and 12.4 percent deposit growth.

The Bank’s net interest margin declined from 2.83 percent to 2.73 percent for the years ending December 31, 2017 and 2018, respectively. The reduced net interest margin is a function of the Federal Reserve having increased short-term interest rates and the flattening of the yield curve. Consequently, the Bank’s net interest margin compresses as the cost of deposits and other borrowings rise faster than the yield on its earning assets.

“Operational efficiency remains a core competency for the Bank, as evidenced by our 40 percent efficiency ratio for the years ending December 31, 2018 and 2017, respectively,” 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, 2018 increased $24 million to $209 million, when compared to the $185 million as of December 31, 2017. The growth was driven 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 11.8 percent, 9.6 percent and 13.1 percent, respectively, as of December 31, 2018.

Retirement can mean different things to different people. Planning for it is always top of mind during your career, but once you’re in the thick of it, the emotional aspect of starting a new phase of your life kicks in. Retirement and retirement planning bring with them the reality of facing a different stage in your life, along with a barometer of your career and financial success. Even if we’re financially ready to retire, are we emotionally prepared for what follows?

At our latest Executive Forum, our esteemed panel spoke on the various stages of retirement and shared their experiences on how they navigated the identify-shift from CEO to former CEO. The group comprised of Roger Valine (former CEO of VSP Vision), Mike O’Brien (Former President and Publisher of Sacramento Magazine), Tom Kandris (CEO and Managing Director of PK1, Inc.), and Lon Burford (Founding Partner of Genovese Burford & Brothers).

Janette Moynier of River City Bank with Susan Savage of the Sacramento River Cats Organization, and Valerie Park of Park, Vaughan, Fleming & Dowler LLP