October 19, 2023

River City Bank Announces Promotion of New Chief Financial Officer

SACRAMENTO, CA — River City Bank (the Bank) announced that Brian Killeen has been named Chief Financial Officer effective October 18, 2023.

After serving as the Bank’s Controller since 2007, Mr. Killeen was appointed Interim Chief Financial Officer on July 3, 2023. Prior to joining the Bank, Mr. Killeen spent seven years working for KPMG LLP in Sacramento, where he focused on performing audits of financial institutions. Mr. Killeen holds a B.S. in Business Administration, with concentrations in Accounting and Finance, from California State University, Sacramento and is a Certified Public Accountant (inactive). Mr. Killeen will spearhead the search for a successor Controller/Deputy CFO to join the Bank’s finance team.

“With Brian’s excellent performance over many years as our Controller and his most recent time as our Interim CFO, he is absolutely the right individual to take on this important leadership role at the Bank.” Steve Fleming, the Bank’s President and CEO. “I am confident his knowledge of the Bank’s accounting, treasury management and financial reporting requirements combined with his commitment to the Bank’s growth and success, makes him the ideal person for the CFO position.”

October 18, 2023

River City Bank Reports Net Income of $16.3 Million for the Third Quarter of 2023, $43.6 Million Year to Date and a Quarterly Cash Dividend

SACRAMENTO, CA —River City Bank (the Bank) reported net income of $16.3 million, or $10.94 per diluted share, for the quarter ending September 30, 2023, which compares favorably to the $11 million, or $7.43 per diluted share, for the same period in 2022.  Net income was $43.6 million or $29.22 per diluted share for the nine months ending September 30, 2023, which compares favorably to the $36.3 million or $24.51 per diluted share for the nine months ending September 30, 2022.  The Bank’s earnings for the first nine months ending September 30, 2023 represented a healthy 15.4% return on equity capital and 1.34% return on assets.

Significant items impacting quarterly net income for September 30, 2023 and 2022 include the following:

  • Higher loan balances – Average loan outstandings were $513 million higher than the prior year quarter, thereby increasing net interest income.
  • Increased net interest margin (NIM) – For the current quarter, NIM has increased to 2.87% from 2.72% in the prior year quarter.  Year-to-date NIM has increased to 2.86% from 2.59% in the prior year through nine months.  The Bank has seen a benefit in NIM as market rates have increased over these timeframes.
  • The provision for credit losses for the current quarter of $4.6 million was higher than the $3.7 million for the prior year quarter.  The increase in the provision for credit losses in 2023 reflects the growth in the Bank’s loans this year and concern for continued deterioration in the office segment of the Bank’s commercial real estate portfolio.  For the nine months ending September 30, 2023, the provision for credit losses was $12.6 million – notwithstanding an absence of actual loan losses during that period.
  • The Bank recognized $2.4 million in mark-to-market gains on interest rate swaps for the current quarter compared to none in the prior year quarter.  These swaps were recently entered into for the purpose of hedging the medium term fixed rate loans in the Bank’s loan portfolio, as part of the Bank’s standard interest rate risk management program.

“With the Bank’s founding in 1973, we are celebrating 50 years of consistent and reliable service to our customers in 2023 and we are thankful for the goodwill that we have built with our loyal and expanding customer base,” said Steve Fleming, president and chief executive officer. “Notwithstanding the turmoil in the banking industry that was caused by the failure of several banks in the first half of this year, our total deposits have grown significantly from $3.4 billion as of December 31, 2022 to $4.2 billion as of September 30, 2023; as such, the Bank’s liquidity remains healthy.  At the same time, our asset quality remains strong with a very short effective duration (average of 1.1 years) bond portfolio and virtually no delinquencies or non-performing loans.  We believe we can continue to grow our commercial real estate loan portfolio as we focus on loans secured by multi-family, retail, and industrial properties, as well as expanding our geographic footprint to other western states outside of California. On the other hand, we continue to see deterioration in the office segment of our commercial real estate loan portfolio from the reduction in demand as employers continue to provide work from home opportunities for their employees.”

“The Bank’s high quality investment securities portfolio continues to perform well with relatively small unrealized losses included in accumulated other comprehensive loss within shareholders’ equity (3%) and there are no investment securities categorized as held-to maturity,” said Brian Killeen, interim chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 29 percent efficiency ratio, after excluding the interest rate swap mark-to-market gain of $7.7 million, for the nine month period ending September 30, 2023.”

Shareholders’ equity for River City Bank on September 30, 2023 increased $52 million to $405 million, when compared to the $353 million as of December 31, 2022. The increase was primarily driven by current year retained earnings, as well as a $10.2 million improvement in the Bank’s accumulated other comprehensive income position. River City Bank is one of a small percentage of banks in the United States which can claim a positive accumulated other comprehensive income. The Bank’s capital ratios remain well above the regulatory definition for being Well Capitalized, with a Tier 1 Leverage Ratio of 8.6% as of September 30, 2023.

Additionally, Mr. Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.35 per common share to shareholders of record as of October 31, 2023, and payable on November 14, 2023.

October 5, 2023

3 Prudent Practices for Nonprofits in Today’s Uncertain World

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By Rebecca Fabisch Miller, Executive Vice President and Commercial Banking Director, River City Bank

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Anyone who has worked with a nonprofit knows they can be particularly vulnerable to economic conditions and unforeseeable events. Today’s environment presents both of these challenges.

 

California nonprofit boards and their teams are facing not only an increased demand for services in the face of stubborn inflation, but they must also carefully manage their cash like never before.

 

 

This is precisely where your banker can be a vital and trusted adviser. Indeed, many organizations are flush with cash these days, and with increasingly attractive interest rates, that money must be put to work by their boards. But not all nonprofit boards and their executive teams have the time and expertise to research the most lucrative cash strategies, best practices in fraud protection, or ways to maximize their banking relationships.

As a banker and a nonprofit board member, I find these issues hit close to home. In addition to providing vital resources to our community, the nonprofit sector is the fourth-largest employer in California, paying $74 billion in annual wages, according to the Impact Foundry. Such prudent financial management is also important to our local economy.

Here are three areas that demand attention from nonprofit boards and executive teams.

1. Cash and investment strategy

It’s always surprising to me just how few nonprofit organizations have written financial management policies. This is troubling because board members have a fiduciary responsibility to ensure that the organization’s funds are both maximized and handled in a safe and secure manner. That’s why it’s so important to get an investment policy in place if you don’t have one, or if it is not included in your bylaws.

These days and in this inflationary cycle, cash is king. Designing an investment plan for your money is vital to developing a strategy for putting your funds to the best use. But safety must come first. We all know that individual deposit accounts are insured up to $250,000 in banks that are members of the Federal Deposit Insurance Corp. But by talking with the right banking partner, nonprofits can safeguard considerably more than that. For example, at River City Bank, one of our special programs allows you to safely invest as much as $150 million in our bank with full FDIC insurance.

Money market accounts and certificates of deposit are now delivering interest rates that can generate sizeable interest income for an organization. Nonprofits should take the time to forecast how much of their reserves can be invested, for how long, and in what products to maximize returns.

To assist with this, we’re proud to provide the products and services that these clients need and want. As Kenn Altine, CEO of the Sacramento SPCA, told me: “River City Bank found a way to help us earn more money on the money we have, which our former, national bank never offered. Now, even money in our checking account is earning a rate that helps us maximize our dollars. We don't want to take risks with that money, but we also want to maximize our ability to increase that money.”

2. Fraud Protection

Every organization, whether it’s a foundation or a for-profit organization, is at risk of fraud. In fact, the median loss due to fraud at a charitable group in 2022 was $78,000, according to Occupational Fraud 2022: A Report to the Nations. No one wants that on their watch. Make sure your organization takes advantage of fraud protection tools such as check and ACH positive pay, uses dual control when initiating payments, and has strong audit standards, including a bifurcated review of statements.

Cybersecurity training is also essential. It’s important that all your employees and board members are kept up to date with knowledge about how to spot common cyber scams. Nonprofits are often targeted by cybercriminals who want your data, or money, or both. Hackers are now looking, not just for personal or financial data, but to lock down your entire computer system and hold it for ransom. And these criminals are clever. In fact, as a nonprofit treasurer, I received a phishing email earlier this year that appeared to come from the group’s chairman. I didn’t click on any links and phoned the so-called sender to verify my hunch. It was, indeed, fraud. Your board and staff need a similar sensitivity.

3. Your banking relationship

As a 30-year banker, I can tell you that we are often an underused asset at nonprofits. Not all bankers are community-focused, but many are – or certainly should be. By bringing their experience and expertise, bankers can be valuable members of committees and boards, while encouraging their colleagues to volunteer.

At River City Bank, we strive hard to make this a reality throughout our communities. It is why we are so proud to have donated almost $10 million in local grants in association with the Kelly Foundation, created by the family of the bank’s founder. And through these efforts, we believe we are succeeding in helping improve the lives of our neighbors and our employees.

“From a relationship management perspective, River City Bank truly cares about their clients and the people that they work with,” said Leah Miller, president and CEO, Habitat for Humanity of Greater Sacramento. “I see that from not just a client perspective, but also in the ways that they invest their time and their energy as volunteers and supporting our various efforts.”

To learn more about our commitment to nonprofit organizations in our communities, or to inquire how we might provide services that support your mission, please visit us here or contact one of our relationship managers at (916) 567-2899.

With assets of over $4.3 billion, River City Bank is the largest independent and locally owned and managed bank in the Sacramento region. With a 50-year track record of success, eight branches, an office in San Francisco, and a presence in Southern California, the bank is rated as one of the strongest in the country.

 

MEMBER FDIC

Rebecca Fabisch Miller has spent her 30-year commercial banking career in Sacramento, working as a relationship manager and regional director at several major banks. She earned her MBA from the University of California, Davis and has an undergraduate degree in international business and marketing from California State University, Sacramento. She is the treasurer for the California Forest Foundation and has been involved with many local charities.

 

 

September 14, 2023

Bank CEO: Why Cyberattacks Keep Me Awake at Night

Conceptual photo collage of cyber security

By Steve Fleming, President and CEO, River City Bank

Conceptual photo collage of cyber security

Cybersecurity keeps me awake at night, and it should worry you as well. As the CEO of River City Bank, I know it’s not a question of whether we will be targeted by hackers. Cybercriminals are attacking all our businesses daily—at an increasing rate. As the bad guys get more sophisticated, businesses—both large and small—are vulnerable. Cybercriminals view large business as a big pot of gold for them to steal, and small or medium-size business as an easy target. McKinsey & Co. estimates that cyberattacks will cause $10.5 trillion a year in damages by 2025, a whopping 300% increase from 2015.

No one is immune to the risk. The news earlier this year that San Bernardino County paid a $1.1 million ransom to hackers who installed malware on the sheriff’s office computer systems is a wake-up call to everyone. The county had cyber insurance, which covered half the bill. It’s likely that many local businesses haven’t purchased such insurance, even though experts say it’s a best practice to guard against losses.

Closer to home, the news of the Oakland ransomware attack keeps getting worse, with non-public personal  information from current and former employees now surfacing on the dark web. Ransomware, a major threat for businesses of all sizes, now accounts for 24% of data breaches, according to the Verizon 2023 Data Breach Investigations Report. In a ransomware attack, the criminals pierce security systems and install code or software that can shut down your business or hold it hostage until you pay up. To make matters worse, stolen information can be sold on the dark web—even after ransom is paid.

All it takes to find yourself in a big mess is someone at your company clicking on the wrong link or attachment in an email. Last year, sophisticated scammers lured five Sacramento County employees into handing over their official log-in information, a breach that exposed more than 2,000 sensitive health records. This was just one incident of phishing attacks last year as the tactic reached record levels, with more than 4.7 million attacks being recorded.

The Responsibility Is in Our Hands

At the end of the day, the buck starts and stops with the CEO. We’re the final risk manager, and regardless of whether we run a bank, construction company, law firm, farm, nonprofit charitable organization, or public agency, this is one of the biggest risks we face. Ignoring cyber risk is a critical error that will likely result in a painful and expensive outcome.

Let’s face it: We do our best to manage and control our businesses, but cybercriminals know they can penetrate our information security defenses through our vendors (particularly those in the software supply chain), our customers, and our employees when they let down their guard.

We need to think about what’s at stake. A cyberattack can cost us time, focus, and money, but it also can lead to lost customers, a damaged reputation, and even regulatory scrutiny. In its 2023 report, IBM estimated the average cost of a data breach at $4.45 million. In the U.S., it’s twice that. And the average time to identify and contain the breach was 277 days. Who has that time to spare?

No wonder this issue keeps me up at night—it represents a risk for the business that I run, but also a risk for all our clients.

At River City Bank we instill a business culture that teaches our staff to be hypervigilant about cybersecurity, while recognizing that mistakes can, and will, happen. In fact, the Verizon report found that 19% of data breaches were due to “internal actors,” meaning our own people or contractors, either intentionally or through error.

If your business does not conduct regular cyber training for your staff, you’re putting your company in danger. Educated workers are less likely to click on a suspicious link or use a password that is easy to hack, and, thus, mistakenly put your life’s work in someone else’s hands.

Every business, no matter the size, needs to understand cybersecurity best practices and use them to minimize losses if an attack happens. Have a business continuity plan in place, and make sure your critical data is backed up and encrypted. Build defensible space throughout your IT network to limit the damage from malware that has taken advantage of a vulnerability in your network. These suggestions, as well as other ways to safeguard your company, are why we developed this cybersecurity overview for our customers.

Last, when all else fails, don’t forget about the benefits of cyber-risk insurance coverage. The cost of this insurance is rising due to the success of the cybercriminals. But ask yourself if you can afford a massive loss from a cyberattack.

Since September ’08, Steve Fleming has been President & Chief Executive Officer of River City Bank, the largest and most profitable bank based in Sacramento. With over 40 years of banking experience, immediately before joining River City Bank, he was the Founder and CEO of Presidio Bank in San Francisco. Steve also worked for over 20 years at Bank of America in a variety of progressively more senior roles, including as Head of Credit Administration for its Europe, Middle East, and Africa division.

September 6, 2023

Avoiding a Cyber-Attack

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Cyber-attacks are a growing and significant concern for small and medium-sized businesses (SMBs). Despite the common misconception that hackers only target behemoths, SMBs make increasingly attractive prey. In fact, certain types of attacks, like phishing, are much more commonly aimed at SMBs. It is critical to both (1) institute best practices to minimize the chance of experiencing a cyber-incident, and (2) take measures now to minimize the potential damage in the event a cyber-incident does occur.

“Fifty percent of SMBs have been the victims of a cyber-attack and over 60% of those attacked go out of business.”

Dr. Jane LeClair
Chief Operating OfficerNational Cybersecuity Institute

Avoiding a Cyber-Attack

Cyber-attacks are a permanent and persistent threat to your organization, and there is no way to entirely remove that risk. However, by implementing cybersecurity controls, you can minimize the probability of a successful cyber-attack.

  • Keep your software, applications, web browsers, and operating systems up-to-date. Set updates to occur automatically. Do not use software that is no longer supported by the vendor.
  • Know where your important data is located. Secure your physical and electronic files. Ensure important files and systems are encrypted and regularly backed up. Perform periodic back up data recovery tests.
  • Require strong passwords, or passphrases which are longer and more complex than passwords, on all your applications and devices. Use a password manager to securely store all passwords.
  • Have formal policies and procedures for safeguarding data and systems.
  • Use Multi-Factor Authentication (MFA) wherever possible. MFA reduces risks associated with compromised passwords.
  • Enforce strong security standards before employees or vendors connect to your network.
  • Create a culture of security. Conduct employee information security awareness training consistently. Training should include common attacks and tactics used by cyber-criminals (such as social engineering, phishing, etc.). Refer to the FTC factsheets on Phishing, Ransomware, Business Email Imposters, and Tech Support Scams for additional information on training topics.
  • Know your vendors. Your vendors are ultimately your responsibility, and software supply chain risk is often an overlooked area of cyber risk. Review your software vendor contracts to understand what the vendor will be responsible for in the event that your business is affected by a cyber- incident, such as a supply chain attack. This also includes confirming your vendor’s own processes for overseeing subcontractors and managing risks. In addition, periodically conduct risk assessments for third-party relationships.

37% of companies hit by ransomware had fewer than 100 employees.

Employees of small businesses experience 350% more social engineering attacks than those at larger enterprises.

In 2020 alone, there were over 700,000 attacks against small businesses, totaling $2.8 billion in damages.

80% of all hacking incidents involve compromised credentials or passwords.

95% of cybersecurity incidents at SMBs cost between $826 and $653,587.

Limit the Damage of a Cyber-Attack

It is not a matter of if you will experience a cyber-incident, but when. Even with best practices to minimize the probability of a cyber-incident occurring, the risks are increasing and are difficult to avoid. It is important to take steps now to prepare and minimize the potential impact of a cyber-incident.

  • Defensible Space. Implement layered defenses to increase prevention, detection, and response capabilities. Consider building a “Zero Trust” security framework that requires all users to be authenticated and authorized before access to any applications/data is granted.
  • Cyber Insurance. Cyber insurance is one option that can minimize incurred costs in the event of a cyber incident. Review your cyber insurance to understand the policy coverage. Refer to the FTC Cyber Insurance factsheet for additional information cyber insurance.
  • Business Continuity Plan/Disaster Recovery (BCP/DR). Have a plan, and test it. Having a BCP/DR process in place prior to a cyber incident is crucial for a successful and expeditious recovery. Consider having incident response services (e.g. law firm, forensic specialist, ransomware negotiator, etc.) on retainer in the event of a cyber incident. Refer to the FCC Cybersecurity Planner and FTC Data breach Response Documents for additional information on BCP/DR preparation.

The FTC offers factsheets which provide additional information on the topics reviewed.

  • FTC Vendor Security factsheet has additional information on vendor security.
  • FTC Cybersecurity Basics factsheet and the FCC Cybersecurity Planner offers additional information on cybersecurity controls.
  • FCC Cybersecurity Planner and FTC Data Breach Response documents provide information for Business Continuity and Disaster Recovery preparation.
  • FTC Cyber Insurance factsheet has more details on cyber insurance.

Links to these factsheets can be found below:

August 3, 2023

Boutique Commercial Bank Resilience Tied to Customer Health and Responsible Management

River City Bank's Steve Fleming chatting with a businessman

By Steve Fleming, President and CEO of River City Bank

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When four banks failed earlier this year, including three based in California, Sacramento business owners understandably had concerns about the viability of their banks. They needn’t have worried.

The banking industry is essentially a reflection of the community it serves, and the financial condition of any one bank is the product of its local economy as well as its chosen customer base. Fundamentally, the health of this relationship depends on how well bank management understands its community, knows its clients, and maintains a clear-eyed view into the risks of the future.

After more than 40 years in banking, it’s clear to me that the foundation of good banking is solid in this community. What we witnessed earlier this year was idiosyncratic events, including excessive customer concentrations in the venture capital, cryptocurrency, and technology sectors, which led to the four bank failures. Frankly, the other major contributing factor to the demise of the four banks was poor interest rate risk management.

But these are not systemic challenges. Most of the 4,500 U.S. banks, including my own, River City Bank, were respectful of the Federal Reserve’s clear guidance that it intended to raise interest rates sharply in 2022 and 2023. We understood that interest rates were going to rise, and we took prudent steps to manage what was coming. As a result, River City Bank and the majority of America’s insured commercial banks have proven to be resilient.

Still, we recognize there is uncertainty in the economy, as we heard at River City Bank’s 2023 Business Outlook event earlier this year. Thankfully, though, “we are not seeing the forces that would create a recession,” explained Jerry Nickelsburg, Adjunct Full Professor of Economics at UCLA Anderson School of Management. He said the underlying economy is strong, with a strong job market, low unemployment, and high capital investments. Of course, there is always uncertainty with the future – no one has a crystal ball that allows for consistently accurate predictions. Who knew there would be a global pandemic in 2020?

River City Bank’s Approach and the Safety of Deposits

With any regional bank, there is a symbiotic relationship between its strength and profitability and the health of local businesses. If a bank’s customers are doing well, a bank will typically do well – and vice versa.

One important way River City Bank ensures it can perform well in an uncertain environment is by choosing well-capitalized, well-run companies as clients. For 50 years, we’ve been dedicated to our local communities and have gotten to know our clients both professionally and personally. We know that good customers can withstand downturns, and thanks to our conservative loan underwriting, our customer base is strong and doing well. Ultimately, this allows River City Bank to seize opportunities when they arise, no matter the economic climate.

We also know that the more deposits a bank has, the more loans it can make to benefit the local economy. With a keen focus on exceptional customer service, along with paying very attractive yields, we’ve seen our deposit base increase more than $3.4 billion since 2007. Over the past three years alone, deposits grew at a compounded rate of 17 percent, while our total loan portfolio rose more than 19 percent to reach $3.2 billion.

River City Bank's Steve Fleming chatting with a businessman

We also offer CDARS®, which provides access to millions in FDIC insurance on funds placed in CDs. Depositors receive one monthly statement from River City Bank simplifying paperwork, with a single rate for each maturity.

What Comes Next

As we now look ahead through the rest of this year and into the next, we see the economy isn’t behaving in the typical ways we’ve experienced. Several external factors, such as the influx of COVID fiscal stimulus, the Fed’s tightening monetary policies, the labor shortage, and the Russian invasion of Ukraine, have made it hard to predict what will happen next.

What we do know, however, is that River City Bank is well positioned to meet today’s challenges, whether they arise from local trends or global events. And we are committed to ensuring that this remains true both now and in the future. Thanks to our flexible, innovative, and responsive approach, we are confident that on behalf of our customers, we are fully prepared for tomorrow’s banking environment and the needs of the communities in which we’re proud to do business.

At River City Bank, we provide products and services that are custom-tailored to your business needs. To learn more about our flexible deposit products, or to discuss other services from River City Bank, please visit us here or contact one of our relationship managers at (916) 567-2899.

Company Information

With assets of over $4.3 billion, River City Bank is the largest, independent, and locally owned and managed bank in the Sacramento region. With a 50-year track record of success, 8 branches, an office in San Francisco, and a presence in Southern California, the bank is rated as one of the strongest in the country.

Since September ’08, Steve Fleming has been President & Chief Executive Officer of River City Bank, the largest and most profitable bank based in Sacramento. With over 40 years of banking experience, immediately before joining River City Bank, he was the Founder and CEO of Presidio Bank in San Francisco. Steve also worked for over 20 years at Bank of America in a variety of progressively more senior roles, including as Head of Credit Administration for its Europe, Middle East, and Africa division.

July 21, 2023

River City Bank Reports a Quarterly Cash Dividend on Common Shares

SACRAMENTO, CA — Steve Fleming, president and chief executive officer 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 $14.4 million or $9.65 diluted earnings per share for the quarter ending June 30, 2023, a cash dividend of $0.35 per common share to shareholders of record as of August 1, 2023, and payable on August 15, 2023.

July 19, 2023

River City Bank Reports Net Income of $14.4 Million for the Second Quarter of 2023 and $27.3 Million Year to Date

SACRAMENTO, CA —River City Bank (the Bank) reported net income of $14.4 million, or $9.65 per diluted share, for the quarter ending June 30, 2023, which compares favorably to the $8.9 million, or $5.98 per diluted share, for the same period in 2022. Net income was $27.3 million or $18.28 per diluted share for the six months ending June 30, 2023, which compares favorably to the $25.3 million or $17.08 per diluted share for the six months ending June 30, 2022. The Bank’s earnings for the first six months ending June 30, 2023 represented a
healthy 14.8% return on equity capital and 1.35% return on assets.

Significant items impacting quarterly net income for June 30, 2023 and 2022 include the following:

  • Higher loan balances – Average loan outstandings were $470 million higher than the prior year quarter, thereby increasing net interest income.
  • The provision for credit losses on loans for the current quarter of $6.5 million was significantly higher than the $1.3 million for the prior year quarter. The increase in the provision for credit losses in 2023 reflects the growth in the Bank’s loans this year and concern for continued deterioration in the office segment of the Bank’s commercial real estate portfolio.
  • During the prior year quarter, the Bank had recognized a $3.9 million loss on the sale of $34 million of available for sale corporate bonds. The Bank had no investment sales during the current quarter.
  • The Bank recognized $5.3 million in mark-to-market gains on interest rate swaps for the current quarter compared to none in the prior year quarter. These swaps were recently entered into for the purpose of hedging the medium term fixed rate loans in the Bank’s loan portfolio, as part of the Bank’s standard interest rate risk management program.

“With the Bank’s founding in 1973, we are celebrating 50 years of consistent and reliable service to our customers in 2023 and we are thankful for the goodwill that we have built with our loyal customer base,” said Steve Fleming, president and chief executive officer. “Notwithstanding the turmoil in the banking industry that was caused by the failure of several banks in the first half of this year, our total deposits have grown from $3.4 billion as of December 31, 2022 to $3.6 billion as of June 30, 2023; as such, the Bank’s liquidity remains healthy. At the same time, our asset quality remains strong with a very short duration (average of 1.7 years) bond portfolio and virtually no
delinquencies or non-performing loans. We believe we can continue to grow our commercial real estate loan portfolio as we focus on loans secured by multi-family, retail, and industrial properties, as well as expanding our geographic footprint to other western states outside of California. On the other hand, we continue to see deterioration in the office segment of our commercial real estate loan portfolio from the reduction in demand as employers continue to provide work from home opportunities for their employees.”

“The Bank’s high quality investment securities portfolio continues to perform well with relatively small unrealized losses included in accumulated other comprehensive loss within shareholders’ equity and there are no investment securities categorized as held-to maturity,” said Brian Killeen, interim chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 30 percent efficiency ratio,after excluding the interest rate swap mark-to-market gain of $5.3 million, for the six month period ending June 30, 2023.”

Shareholders’ equity for River City Bank on June 30, 2023 increased $31 million to $384 million, when compared to the $353 million as of December 31, 2022. The increase was driven by current year retained earnings, as well as a $4.7 million reduction in the Bank’s accumulated other comprehensive loss. The Bank’s equity continues to be minimally impacted by a slight $477 thousand accumulated other comprehensive loss position as of June 30, 2023. The Bank’s capital ratios remain well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.3% as of June 30, 2023.

June 29, 2023

Meet Jeremy Spencer

Head shot of Jeremy Spencer
Head shot of Jeremy Spencer

Jeremy Spencer is River City Bank’s Director of Risk Management. He oversees the Bank’s Compliance, Information Security, and Internal Audit Departments. We recently sat down with Jeremy to talk about his globetrotting goals, his childhood dream of playing professional baseball, and a life filled with activities and adventures with his two sons.

A vacation photo of Jeremy Spencer with his wife and two sons
The Spencer Family
Jeremy Spencer and his two sons on a camping trip
Jeremy Spencer and his sons

What is your current state of mind? Busy!

What was the best piece of business advice you were given when you were starting out? Plan for the long term, live within your means, and save as much money as possible.

What do you like best about working at River City Bank? I get to work alongside so many dedicated people; people you can count on when things get difficult.

June 29, 2023

Kelly Foundation Presents the American Red Cross with $100,000 Donation

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Kelly Foundation Board Member Riley Gardner of River City Bank recently visited the offices of the American Red Cross California Gold Country Region. There he presented Chief Development Officer Kimberly Coley and Senior Regional Philanthropy Officer Kimberly Diaz with a check for $100,000.

The much-needed funds will help The American Red Cross with its ongoing work assisting families during challenging times, including providing disaster relief to Californians impacted by the State’s recent severe weather.

Headquartered in Sacramento, the Gold Country Region covers territory consisting of urban to rural, mountains to valley flatlands, and everything in between.

To learn more, visit their website at www.redcross.org and find out how you can make a difference.