Page 19 – River City Bank

July 3, 2018

Calvada Celebrates 50 Years

Calvada Food Sales reached a milestone, turning 50 this year. With three trucks, rented freezer space at US Cold Storage in Sacramento, and a facility in Reno, Calvada opened for business on April 1, 1968. Only one of the original owners, Thomas Mackey, has stayed on for the entire half-century. Tom is now joined by partners Bruce Wade, Bill Hill, Andy Wong, Tom Green, and Tom’s son Thomas (TJ) Mackey.

During the last 50 years, the company continued to grow and expand. In 1980, the Reno facility moved into a larger space in Sparks, NV. While in Sacramento, additional property was purchased to keep pace with the growing demands of their products.

Calvada, which started with three partners and one employee, now boasts 62 in their ranks. Congratulations on 50 years and here is to 50 more!

Celebrating Calvada’s 50th Anniversary

Calvada’s Thomas Mackey with Steve Fleming, CEO and President of River City Bank

The Calvada Team

July 3, 2018

Redefining the Family Business

A Q&A with Roy Hill, Jr. of Elite Service Experts

The Hill family founded IMS nearly two decades ago. As a second-generation owner of the company, Roy Hill, Jr. lives and breathes the company’s mission of being the “best” in delivering service and improving the lives and businesses of those they connect with and serving others as they would like to be served. We sat down with Roy to discuss the exciting changes at IMS and how he embraces the unique challenges and triumphs that come along with a family-owned business.

After many years, IMS will become Elite Service Experts. What prompted the change in name?

IMS was started by my father Roy Hill, Sr., in April of 2000. Primarily focused in Commercial Facility Maintenance and Repair services, it quickly grew to incorporate a full line of Facility Services to include Landscaping, HVAC, Janitorial, Roofing, Facility Management, Lighting, Electrical and General Maintenance and Repair Services.

My father unexpectedly passed away in February 2017. This unfortunate event was very tragic for the family as well as the business and those who worked for it. While dad had planned for the succession of the business to my brother and me, we were not prepared for the unfortunate and unexpected situation we found ourselves.

Among the many positive changes we made in the business over the last year, one of them was the decision to create a new company and a fresh start. A new brand and name that would signify the absolute best that IMS has always strived to achieve. We decided on the name Elite Service Experts to boldly express our capabilities above others. We incorporated a Phoenix in the logo to represent a rebirth of our father’s great legacy.

The rebranding of IMS had generated a powerful synergy with our team, and an excitement and momentum from every level of the company. It’s both energizing and exciting to be part of something new that has the experience, knowledge, resources, and connections of a well-established and seasoned business.

Elite is a family-owned business. What are some of the unique challenges that you as CEO have faced?

The family works well together with four family members working in the business, including my brother and partner. Overall, the family supports decisions I make as CEO, but they don’t hesitate to chime in if they have questions or opinions. Their feedback allows me the opportunity to step back and reassess a situation, especially through their eyes. I believe this results in sound business decisions.

We aren’t perfect, but we are a family dedicated to our company mission established by Roy Hill, Sr.

Roy Hill, Jr. and Ryan Petree

Outside of the unique hurdles I have faced with regards to the family-owned business, I have had many other challenges, especially over the last year. The biggest of which would have been the decision to downsize and refocus our services to core competence. That included the decision to eliminate the Janitorial and HVAC Business Units. It would have been easy to stop service and terminate employees. However, all decisions we make in the company must align with our Core Values and accomplish our mission. Our Core Values are Respect, Compassion, Righteous Behavior, and Faith. I had to eliminate two Business Units while maintaining compassion and serving others the way we would want to be served. So I took the challenge head-on and decided to identify prospective Janitorial and HVAC contractors who would be willing to take on the current contracts, while agreeing to hire every employee at their current wage, benefits structure, schedule, etc. This would ensure we have served our customers the way we would want to be served but with compassion for our employees top of mind. In two short months, I completed the challenge leaving Elite Service Experts with three core competencies:

1. General Building Maintenance and Repair specializing in all aspects of building maintenance such as plumbing, electrical, lighting, carpentry, on-site and scheduled building technicians and handyman type services.

2. Landscaping specializing in routine maintenance, field mowing, property clean-ups, irrigation repair and installation, renovations, backflow repair, and certifications, etc.

3. Specialty Services specializing in services such as pressure washing, concrete sealing and staining, construction clean-up, window cleaning and calcium removal, laborer support and more.

How do you characterize your leadership style?

Servant Leadership. I’m not opposed to doing anything my team does; in many cases, I get my hands dirty right alongside them. However, I feel my job as CEO is to motivate the team then get out of their way. You provide guidelines and parameters along with clear goals then empower your team to make the decisions they need to win. Lastly, we are humans and mistakes are inevitable. I feel that mistakes should be a teachable moment that everyone should learn from to avoid making the same one again. We don’t reprimand for mistakes. However, if the same error is made multiple times, it becomes a competence issue. We do reprimand for incompetence.

What piece of advice would you give to a future entrepreneur or your 25-year-old self?

Face your challenges head-on, be flexible and available to employees, learn to say no and remain focused, and believe that anything can happen. Lastly, if you demand your employees to work hard, lead by example.

What’s next for Elite?

We are currently preparing our infrastructure for continued growth. We have invested in a Mobile Field Software for our technicians and crews. We are planning to invest significantly in equipment and vehicle upgrades to maximize efficiencies and reduce operating expense. Lastly, we are looking into offering service solutions for residential applications.

You have many banking options, why did IMS/Elite choose River City Bank?

We have been partners with RCB for well over 15 years. Our relationship is mutually beneficial, and that is a true partnership. We like what RCB stands for in the community and the support it has for Family Businesses in the region. Lastly, there isn’t a branch you can go into that doesn’t treat you like you are their only customer. We look forward to continuing our partnership for many years to come.

July 1, 2018

River City Bank Launches New Clean Energy Division

Taking the lead in providing banking services for clean energy companies throughout California, River City Bank (RCB) recently launched its new Clean Energy Division. RCB has taken a bold step into this fast-growing space, earning an award from the City of Davis for its beneficial environmental quality contributions and dedication to helping Community Choice Aggregation (CCA) businesses provide locally-supported clean energy. With the launch of its new Clean Energy Division, RCB will continue to service its existing CCA clients and focus on expanding relationships with other players within the clean energy sector, all the while supporting California’s climate action goals.

“Seeing the positive impact of CCAs in California since the launch of Marin Clean Energy in 2010, we were able to gain first-mover advantage in this space,” said Steve Fleming, President and CEO of River City Bank. “Part of the reason for the launch of our new Clean Energy Division is the cultural fit between River City Bank and the CCAs. Specifically, CCA entities prefer to work with community banks which are committed to supporting renewable energy, consumer choice, and local decision making.”

Based in the Bay Area, Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager, is tasked to lead the charge. Over the past few years, Rosa has managed and grown the Bank’s clean energy portfolio.

Given its experience in the complexities and nuances of this specialized field, RCB is able to provide over a dozen CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

Learn more about River City Bank's Clean Energy services.

June 1, 2018

Reboot Your Router to Stop Malware

A sophisticated malware system linked to Russia has compromised hundreds of thousands of internet routers. The malware targets routers produced by several manufacturers and is capable of performing multiple functions, including information collection, device exploitation, and blocking network traffic. The FBI recommends the following steps to protect your information from this malware threat.

Reboot Your Router: You should reboot the router by turning it off, and then turning it back on. The simplest way to do this is to unplug the power from the router, wait 10 seconds, and then plug the power back in. Rebooting the router will temporarily disrupt the malware. Note: DO NOT RESET (only reboot) your router – pressing the reset button can erase all settings on the router and cause it to be inoperable.

Upgrade Firmware: You should upgrade the router’s firmware to the latest available version.

New Password: Select a new secure password. Check out tips on setting up an effective and secure password.

Management Settings: If remote management settings are in place, consider disabling them.

Safeguarding your personal information is not just important, it’s vital to your business and ours. Should you have any questions about this malware or recommended security steps, 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].

June 1, 2018

Debit Card Safety Tips

With debit cards quickly becoming the most popular form of payment around the globe, it’s no wonder that card fraud is on the rise. Almost everyone who has a debit card may have, at some point, experienced a form of information breach. But, there are things you can do to reduce the chances of becoming a victim:

Be Wary of Independent ATMs – Independent ATMs are not monitored as regularly as bank ATMs.

Avoid using ATMs with unusual signage, especially ones requesting you enter your PIN twice to complete a transaction.
Watch out for ATMs that appear to have been altered. If the front of the machine looks crooked, loose, or damaged; these are tell-tale signs of the existence of a skimming device.
Cover the keypad with your other hand to block anyone, or a camera, from viewing your PIN.

Paying at the Pump – Gas station self-service pumps are easy targets for thieves to place a skimmer and/or pinhole camera. These cameras are sometimes used in conjunction with card skimmers to capture footage of customers entering their PIN.

Pay attention to the card slot. If a card slot looks different from the other card readers at the station, it might be a setup for a card skimmer.
Take the extra step of precaution and pay the gas station attendant instead.

Online Purchases – Debit cards are accepted almost everywhere credit cards are taken. Here are a few tips to help ensure a safe online shopping experience:

Don’t store your debit card information on websites.
Install a personal firewall, plus antivirus and anti-spy software.
Use strong passwords and change them regularly.
Monitor your accounts and check your balances often.

Public WiFi – If you use a free Wi-Fi connection in an airport, café, hotel, or some other public space, you are taking a risk with your debit card information. Public Wi-Fi and shared computers are easy marks for hotspot hackers and a dangerous place to manage your banking and finances online.

Don’t set up your devices to automatically connect to WiFi.
When using public WiFi or a shared computer, avoid transactions that require you to enter your personal information.

Signing Your Card – As a best practice, instead of signing your card, take an indelible marker and write “Ask for identification” in block letters. If you suspect that you have been a victim of fraud or identity theft, please visit www.identitytheft.gov. This is a site run by the Federal Trade Commission that provides a step-by-step recovery plan and assistance in taking action.

Should you have any questions or concerns, please contact our Customer Service Department (916) 567-2899 or (800) 564-7144 or visit your nearest branch.

May 22, 2018

River City Bank announces new Clean Energy Division

Support of Clean Energy clients rooted in community-first values

SACRAMENTO, CA — May 22, 2018 — Taking the lead in providing banking services for clean energy companies throughout California, River City Bank has officially launched its new Clean Energy Division. The prominent business bank has taken a bold lead in this fast-growing space, and it has already earned an award from the City of Davis for its beneficial environmental quality contributions and dedication to helping Community Choice Aggregation (CCA) businesses provide locally-supported clean energy. With the launch of its new Clean Energy Division, River City Bank will continue to service its existing CCA clients and focus on expanding relationships with other players within the clean energy sector while supporting California’s climate action goals.

The Clean Energy Division will be based in the Bay Area under the leadership of Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager, who has managed and grown the Bank’s clean energy portfolio over the past few years. “I’m honored to play a role in making California a cleaner and greener place through the services we provide to CCAs and clean energy related companies,” said Cucicea.

River City Bank currently supports a number of clean energy clients, including depository, cash management and lending needs for 12 different CCAs. Notable clients include Valley Clean Energy in Yolo County, Clean Power Alliance in Los Angeles County, Marin Clean Energy and Monterey Bay Community Power. Given its experience in the complexities and nuances of this specialized field, River City Bank is able to provide CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

“When we looked for someone to help our business mature rapidly, River City Bank stood out for its track record for helping companies like ours navigate the nuances of the industry,” said Ted Bardacke, Executive Director of Clean Power Alliance. “Having direct access to CEO Steve Fleming and relying on Rosa’s team’s expertise is exactly what we need to become California’s largest CCA, with approximately one million eligible accounts.”

For its beneficial environmental quality contributions in the state related to Community Choice Aggregates, and specifically with Valley Clean Energy and the City of Davis, River City Bank was recently honored with a City of Davis 2018 Environmental Recognition Award by the Natural Resources Commission in the Business category.

April 19, 2018

River City Bank reports 2018 first quarter net income of $5.5 million

SACRAMENTO, CA — April 19, 2018 — River City Bank (the Bank) reported net income of $5.5 million, or $3.82 per diluted share, for the quarter ending March 31, 2018, which compares favorably to the $4.2 million, or $2.93 per diluted share, for the same period in 2017. The improved net income versus the prior year quarter was driven by three factors: increased net interest income due to higher loan balances, reduced loan loss provisions due to slower loan growth in the quarter and lower federal tax rates due to the tax reform legislation passed in December 2017.

“Though, as we have been projecting, the pace of our loan growth has slowed significantly compared to the pace of growth over the last three years, the year over year growth in loans still contributed to the continued increase in our profitability,” said Steve Fleming, President and CEO of River City Bank. “Our asset quality is exceptional with the ratio of nonperforming loans and OREO to total gross loans declining from an already low 0.29 percent as of March 31, 2017 to 0.01 percent as of March 31, 2018. Lastly, the Bank benefited from the decrease in the federal tax rate, which effectively added $912,000 to our bottom line through reduced tax expense.”

The loan growth has also been sufficient to mitigate the negative impact of the rise in short term interest rates and recent flattening of the interest rate yield curve. The Bank’s net interest margin declined from 2.89 percent to 2.75 percent for the quarters ending March 31, 2017 and 2018, respectively.

Effective January 1, 2018, the Bank adopted the new Derivative and Hedging accounting standard early. Through the adoption of the new standard, the Bank is able to account for its interest rate swap contracts using hedge accounting. Consequently, the Bank will no longer be subject to the significant valuation swings caused by the mark-to-market of its swap contracts as a gain or loss in non-interest income; rather, both the swaps and the loans being hedged are marked-to-market with the net difference recorded as an adjustment to loan interest income. The Bank recorded a nominal $75,000 reduction to loan interest income for the quarter ending March 31, 2018 as a result of the adoption of the new standard.

“Operational efficiency remains a core competency for the Bank, as evidenced by our 43 percent efficiency ratio for the quarters ending March 31, 2018 and 2017,” said Anker Christensen, chief financial officer of River City Bank. “Managing expenses continues to be a priority for the management team as it offsets the effect of our net interest margin compression.”

Shareholders’ equity for River City Bank on March 31, 2018, increased $4.4 million to $189.3 million when compared to the $184.9 million as of December 31, 2017. The increase was driven through 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 11.9 percent, 9.5 percent and 13.2 percent, respectively, as of March 31, 2018.

March 13, 2018

Kelly Foundation awards $100,000 grant to Sacramento Cottage Housing, Inc.

2017 Major Gift already aiding nonprofit agency’s evolution to become self-sustainable

SACRAMENTO, CA —March 13, 2016 —The Kelly Foundation awarded its 2017 Major Gift of $100,000 to Sacramento Cottage Housing, Inc., a not-for-profit agency that provides long-term housing and a supportive living environment for formerly homeless individuals and families. The award constituted the Kelly Foundation’s largest single donation of the year and has been used to reinstitute the popular Skylab program that provides children at the agency’s Serna Village community with homework assistance, mentorship and special activities. The community recently launched Girl Scout Troop #5836 with an inaugural group of 26 girls, three adults and one staff member. The remainder of the funds will be used to empower Sacramento Cottage Housing to become more independent and self-sustaining with regard to establishing inroads for point-of-sale fundraising opportunities.

“Sacramento Cottage Housing has a strong track record of transforming lives through its innovative practices, and we are excited to partner with the agency as it reinforces and strengthens its operational capacity for the future,” said Shawn Kelly Devlin, President of the Kelly Foundation and Chairman of the Board of River City Bank. “We are confident that this donation will position Sacramento Cottage Housing to enhance its efforts to help at-risk families and individuals in the Sacramento region get back on their feet.”

Sacramento Cottage Housing currently operates two businesses as an extension of its services. One is a brick-and-mortar and e-commerce thrift store called Abundance, Books and More; the other is a mobile car detailing service named Finishing Touch. The entities equip residents with crucial life skills and employment experience as a portion of the agency’s “resiliency method” approach to mitigating the causal factors of homelessness. This method requires participants to create and pursue their own goals as they move from a state of dysfunction to self-sustainability and healthy engagement within the community.

“The Kelly Foundation has presented us with a truly unique and remarkable opportunity that no other organization has ever provided,” said Kristen Martin, Executive Director of Sacramento Cottage Housing. “This grant gives us the means to evolve our business practices through deep research and the implementation of new programs that will ensure our agency’s self-sustainability for years to come. It’s an absolutely forward-thinking gift that we intend to leverage to the furthest possible extent.”

Sacramento Cottage Housing manages two communities for those who are working to overcome the effects of homelessness, substance abuse, incarceration and other challenges. The agency’s family-focused community, Serna Village, has achieved a great deal of success in its 15-year existence, with 75 percent of its residents (6,600 individuals) having completed its program and secured permanent housing with finances, families and sobriety intact. In the same period, more than 40 participants have purchased their own homes.

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.

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 Sacramento Cottage Housing, Inc.

Sacramento Cottage Housing, Inc. (CHI) is an innovative not-for-profit agency providing long-term housing and a supportive living environment for formerly homeless individuals and families struggling to overcome the effects of substance abuse, incarceration and other disabilities. CHI manages two communities: Quinn Cottages, primarily for single adults, and Serna Village which houses families. The program is solution-focused, participant driven and strength-based, enabling residents to create their own goals and successfully fulfill them as they travel the road from dysfunction to healthy self-sustainability while providing for their families and becoming individuals who are fully and healthily engaged in their communities. For more information on Sacramento Cottage Housing and its innovative programs, please visit CottageHousing.org or call (916) 648-8005.

February 20, 2018

Wires: Tips to Protect Your Money

Graphic of a Dollar Sign in front of a blue background

Wires are inherently risky. Once a wire is sent, including a fraudulent wire, the transfer CANNOT be reversed. When sending a wire, it is extremely important that you personally know who you are sending the funds to. If you do not know the person or company, the request may be fraudulent. Allow us to point out some of the usual fraud schemes and scams we have witnessed involving wires. While this is not an all-inclusive list, it will help you decide if the wire transfer YOU request is legitimate.

Things you should ask yourself before you make a wire transfer request:

1. What is the source of this wire transfer request?

For example, was this request received via e-mail from another account owner, someone you know, or your boss (e.g. CEO or CFO)? If so, you should confirm this request in person or over the phone, using a number you have on file, with that individual to ensure they actually e-mailed the request.

2. Have you been told not to disclose the reason you are wiring funds?

What is the reason for the secrecy? Is it valid?

3. Do you personally know the individual or business you are sending money to?

If not, are you certain the requestor is who they say they are?

Situation #1: You have been instructed to send a wire to someone you do not know. Here are some scenarios that should raise flags:

Wiring funds to an investment firm located outside the United States that contacted you via e-mail, mail, or telephone
Keep in mind that fraudulent requests for wires occur every day. Ensure you are comfortable with who you are sending money to.

Wiring funds to pay for fees or taxes in order to release lottery winnings or an inheritance
The lotteries we are aware of do not require taxes or fees to be paid in advance as a requirement of collecting the winnings.

Wiring funds to cover a loved one’s expenses or bail
If you were you notified by someone you do not personally know, or even by your loved one via email, confirm this request in person or over the phone with your loved one directly.

Unexpectedly contacted by a business or vendor stating their payment information has changed
Contact the business or vendor directly, using a phone number you have on file, to validate the changes are legitimate.

Situation #2: You deposited a check or received an electronic deposit to your account and the sender is requesting you to wire them the full or partial amount of the deposit back. Here are some common deceptions designed to steal YOUR money:

Wiring money to someone due to a canceled purchase for items sold on the internet
You are requested to deposit a check and send a portion back under the pretense that the extra money is commission or overpayment
Wiring funds to someone who hired you to process checks for them or their company
Wiring funds to someone you met on the internet that sent you money

In these situations, if the deposit into your account is fraudulent and you wire out or withdraw the funds, you will be held RESPONSIBLE for the entire amount of the returned deposit. Should any these situations arise, STOP and contact River City Bank at (916) 567-2899 or (800) 564-7144, prior to sending the wire.

February 1, 2018

Record-setting 2017 prompts $1,000 employee bonuses from River City Bank

SACRAMENTO, CA — January 30, 2018 — River City Bank, Sacramento’s premier business bank, is awarding each employee at the Vice President level and below a $1,000 bonus following a successful 2017 fiscal year. The bank recently reported a record-setting $2 billion in total assets and a net income of $16.7 million for 2017. In recognition of their employees’ hard work in contributing to a lucrative 2017 year, the bonuses will be distributed in mid- February.

“We want to acknowledge the accomplishments of our incredible employees because we know that a prosperous year stems directly from their exceptional customer service, dedication, intelligence, and integrity,” said Steve Fleming, President and CEO of River City Bank. “Reaching the $2 billion mark in total assets is a significant accomplishment, and we look forward to even more success in the future”