Page 2 – River City Bank

October 21, 2025

Impact of Fed Rate Cuts on the CRE Landscape

By Dan Franklin, Director of Commercial Real Estate, River City Bank

Following a 0.25% reduction in September, the Federal Reserve is highly anticipated to cut its Fed Funds rate by another 0.50% before year end with additional cuts expected in 2026. While this is broadly seen as good news for commercial real estate, the implications vary widely depending on the investor profile and debt structure. Let’s explore the impact on a few primary categories of investors.

Long Term Holders of Stabilized Assets Who Use Medium Term (5 to 10 Years) Fixed Rate Financing

Benefits for this group may end up being modest and stemming primarily from (1) general improvements in broader economic conditions often correlated with low-rate environments, and (2) slight cap rate compression as investors become dissatisfied with lower yields on money market/fixed income instruments and re-allocate capital to higher yielding investments such as CRE.

But what about financing costs? While there is a connection between short-term and long-term interest rates, the correlation isn’t that strong in the short term. As such, this profile of investor can’t fully rely on these cuts lowering the interest rate on their next refinance. Looking at the past couple years, there were multiple instances when the 10-yr U.S. Treasury note yield rose while the Fed cut rates - thus resulting in a negative correlation for this period. Over longer periods, the correlation tends to be more positive, but still not super strong. This is because long-term rates are determined by broader expectations of future economic fundamentals, inflation, and risk premia. In other words, the Fed’s moves are only one piece of a much larger puzzle, so this comparison is simply apples-to-oranges.

Developers

CRE Developers and the contractors that rely upon them are poised to benefit considering most construction loans carry floating rates. New construction project economics simply have not worked for the past couple of years with ~8% debt costs, resulting in numerous projects being placed on hold. Lower short-term rates, coupled with regional banks (a primary provider of construction loans) being more active today than in the past couple years, should help spark a resurgence of construction activity, subject to stability in the broader economic environment.

Investors in Troubled or Transitional Assets Using Floating Rate Debt

Fed cuts cannot come soon enough for this category. Bridge loans typically carry floating or very short-term fixed rates and are heavily used by investors who have a value-add business plan or a troubled asset with a maturing loan that no longer underwrites for traditional term financing. Examples are an office building that fell victim to the work-from-home trend or a highly leveraged multi-family property that didn’t achieve anticipated rent increases after a renovation. Many CRE loans, particularly those from banks, carry 5-year terms and five years ago today the 5-yr U.S. Treasury yield was near zero. Therefore, the cost of debt for many of these maturing loans is skyrocketing from, let’s say, ~3.50% when it was a performing asset to ~8% or higher if it now needs a bridge loan. This increase in both the rate index and credit spread devastates cash flow. Office loans are particularly exposed to this risk as occupancy and rent levels are now lower in many cases than at origination and cap rates are higher, all of which has a compounding effect, warranting a much higher credit spread and creating serious refinance challenges. According to the Mortgage Bankers Association, an estimated 24% of all office loans will mature in 2025 (and many of these were scheduled for 2024 but were unable to be refinanced, forcing existing lenders to provide short term extensions). Thankfully, this isn’t an issue at River City Bank, considering office loans only represent 13% of our CRE loan portfolio and the delinquency rate is currently 0%, due to our conservative program that competes with aggressive pricing and exceptional service, rather than risk taking.

So, Fed rate cuts in 2025 are generally positive for the CRE industry, but in my opinion, their overall impact will likely not represent a monumental shift in the CRE landscape simply due to the moderate magnitude of the changes. However, further additional cuts in 2026 could, of course, make a more dramatic impact on the market.

September 29, 2025

Understanding SIM Swapping

SIM swap fraud is a rapidly growing scam in which criminals trick your mobile carrier into transferring your phone number to their SIM card. With just a bit of personal info, they can hijack your number, intercept texts and security codes, and break into your accounts, often locking you out while they steal money or data. According to a 2025 Thomson Reuters article, the FBI investigated over 1,000 cases in 2023, resulting in losses of nearly $50 million, and reports surged by 240% in 2024. These attacks aren’t random — they’re often the result of careful data gathering and increasingly sophisticated tactics.

One example of this growing threat was highlighted in a newly published article by WIRED’s Andy Greenberg, the keynote speaker at our Business Outlook event. He reported that the U.S. Secret Service shut down a massive SIM card network in New York near the United Nations, uncovering over 300 servers and 100,000 active SIM cards. The system could send up to 30 million texts per minute and posed serious risks to national security, including blocking emergency communications and enabling secret messaging. While this was a large-scale operation, individuals can still take control by securing their mobile accounts, using app-based authentication, and staying alert to suspicious activity.

Stay One Step Ahead

They collect your personal information — such as your name, birthday, or address — often from social media or data breaches.

They contact your phone company, pretending to be you, and say they need a new SIM card.
Your number gets moved to their SIM card.
They use it to break into your accounts, reset passwords, and steal money or data.

Warning Signs

No Signal - Your phone suddenly loses service in areas where it normally works.
Can’t Call or Text - You’re unable to send messages or make calls.
Password or Login Alerts - You get notifications about changes or logins you didn’t make.
Social Media Changes - Posts or profile updates appear that weren’t made by you.
Number on New Device - You’re told your phone number is active on another device.
Unfamiliar Transactions - You see charges, withdrawals, or account activity you don’t recognize.

Tips to Avoid SIM Hijacking

SIM swap attacks are common and often succeed because of weak security. Mobile carriers may prioritize convenience over protection, making it easier for scammers to steal your phone number. To stay safe, use strong authentication, secure your accounts, and remain vigilant for suspicious activity.

Ways to stay protected

Secure Your Mobile Account - Call your carrier to set up a PIN or passcode. Ask about a port freeze or number lock to prevent your number from being moved without your approval.
Strengthen Your Logins – Whenever possible, use app-based two-factor authentication (like Google Authenticator or Microsoft Authenticator) instead of SMS. Create strong, unique passwords and store them in a password manager.
Limit What You Share - Avoid posting personal details like your birthdate or address online. Be careful with phishing attempts by steering clear of suspicious links and not responding to unfamiliar messages.
Act Fast if Something Feels Off - Watch for signs like sudden loss of service or unexpected account alerts. If anything seems suspicious, contact your carrier and banks immediately.

Stay One Step Ahead

SIM swapping is on the rise, but individuals can take simple steps to stay safe. As demonstrated in the New York incident, even large-scale threats show how vulnerable mobile systems can be. Securing your accounts, using app-based authentication, and staying alert to suspicious activity can make a big difference.

September 29, 2025

Steve Fleming Exceeds Capital Cup Fundraising Goal

For the 11th consecutive year, River City Bank’s President and CEO, Steve Fleming, proudly participated in the L5 Investments Capital Cup, once again demonstrating his commitment to giving back to the Sacramento community. Representing Team Sactown Solons, Steve raised an impressive $76,950—far surpassing his original goal of $10,000—to benefit EasterSeals Superior California.

The Capital Cup is a fun, Ryder Cup-style golf tournament where local leaders team up to raise money for Sacramento-area charities. It’s three days of friendly competition, community pride, and serious fundraising. Each player picks a charity to support, and donors can back their favorite player or cause. The winning team’s charities split a $100,000 prize fund, which adds a little extra motivation.

Since its inception in 2015, the Capital Cup has grown exponentially. What began with a goal of raising $250,000 in its first year has evolved into a powerhouse of philanthropy, now having raised over $20 million for Sacramento-area nonprofits. This year, the tournament reached new heights, raising $2.7 million through 995 donors and 1,620 individual donations. The achievement reflects the spirit of community and generosity that defines everyone involved. While the River City Rivercats claimed the championship title, the true victory was shared by all: together, the money the golfers raised supported 28 local charities across the Sacramento region.

Congratulations to Steve and all the Capital Cup participants for making a lasting difference! To learn more about the Capital Cup, visit https://l5investmentscapitalcup.com/.

September 29, 2025

Meet Margaret Topielski

Margaret Topielski is the person you hope to sit next to at a dinner party—warm, stylish, and full of stories that make you lean in. When we sat down to chat with the River City Bank VP and Premier Relationship Manager, it didn’t take long to see why her clients trust her with more than just their finances. Raised in the postcard-perfect town of Solvang, Margaret once swore she’d never become a banker. But as she tells it, banking isn’t really about money, it’s about people. A former ballerina with a soft spot for Paris, spa days, and iced tea, she brings grace and intention to everything she does. Margaret doesn’t just manage relationships, she makes them feel personal, lasting, and beautifully effortless.

Hometown: Solvang, CA. As a child growing up, I never appreciated the quaint, small-town feel of Solvang. But now, as an adult, I love going back to visit and playing tourist in my own hometown! It feels like a little Copenhagen on the central coast of California.

First Job: Call Center Representative at First Republic Bank in San Francisco.

First Car: Black 2009 BMW 3 Series Sedan. His name was Burt the BMW!

Favorite Quote(s): "Remember that not getting what you want is sometimes a wonderful stroke of luck.” - Dalai Lama; "A woman should be two things: who and what she wants.” - Coco Chanel.

Favorite Movie: The Devil Wears Prada. There are just too many good one-liners!

Favorite song: “Heal the World” by Michael Jackson. I was a dancer as a child and still remember the choreography to that song and I always feel connected to his powerful message, even twenty years later.

First concert: Taylor Swift. To provide some context, I was in grade school when I saw her. She had just released her very first album and had not yet become the phenomenon she is today. My father found out Taylor Swift was going to play at the local bar, The Maverick Saloon, and suggested we go. Since I was much too young to step foot into the bar, we sat in the trunk of the car and watched and listened from the parking lot!

Favorite city to visit: Paris. I think there’s absolutely something for everyone in Paris: history, fashion, architecture, food, wine, love, and art.

Favorite place in the Bay Area: Cline Family Cellars. This winery in Sonoma holds a special place in my heart because I had my first date with my husband here, followed three years later by our wedding, creating a full-circle moment. We still visit the winery at least every couple of months to pick up our wine shipment and enjoy a picnic.

First site or app you check in the morning: Email, then the weather app. Depending on where my meetings take me in the Bay Area, it could be 55 and cloudy, or 85 and sunny!

What are you reading right now? I’m currently reading three books. I like to keep a self-help book, a biography/memoir, and a fictional novel in rotation, depending on my mood. I’m currently reading Stop Letting Everything Affect You by Daniel Chidiac, Finding Me by Viola Davis, and The Wedding People by Alison Espach.

Morning ritual: My morning starts with walking my 6-pound Shih Tzu, Dolce (as in Dolce & Gabbana). If I have time, I’ll hop on my Peloton bike for a ride, and then I’ll worry about getting ready and caffeinating.

If you have an extra hour in the day, how would you spend it? I would spend it with my husband and dog, enjoying the simple things we love: going for a walk, cooking a nice dinner, and chatting about our days.

Radio or podcasts? I love The Mel Robbins Podcast. Her episodes are a masterclass in self-improvement, with inspiring guests and practical advice on motivation, mindset, and personal growth. She always reminds me to let the small things go.

Who is your favorite hero/heroine of fiction? Lucy from The Chronicles of Narnia. She doesn’t let age or size dictate her incredible impact in all the books of the series.

What is something people would be surprised to know about you? I used to practice traditional French ballet! I was a ballerina from the ages of three to twenty-three, studying under a former instructor from the Paris Opera Ballet.

What did you want to be when you were a child? Funny enough, I never gave a definitive answer to this question as a child, but what I did say was, “I know I don’t want to be a banker!” And look where we are now. I come from a family of bankers, and the business never appealed to me until I understood that banking isn’t all about the numbers; it’s really a people and relationship business.

What is your greatest extravagance? I’m a big fan of a luxurious spa day. So much so that my husband and I decided it’d be best to invest in a jacuzzi, sauna, and cold plunge of our own. So, instead of going to pricey spas, we have it at home!

What do you consider the most overrated virtue? Patience. I think there is a time and place for it, but I have to thank my impatience for where I am today.

What was the best piece of business advice you were given when you were starting out? This is the best piece of business advice a mentor gave me, someone I’m still connected with today: “Whatever room you walk into, you deserve to be there. So, treat it as such!”

What do you consider your greatest achievement? Professionally, I would say my greatest accomplishment is completing my master’s degree in organizational leadership from Saint Mary’s College of CA. I was in a fast-track two-year program while working full-time, and my father suddenly passed away during my last semester. I considered leaving, but I’m so proud to have stuck with it and learned skills I utilize every day. The most important thing I learned is that no matter what life throws at you, you can persevere and look back with gratitude. Personally, my greatest achievement is marrying my husband. He has changed my life for the better in countless ways, and I’m grateful for him every day.

What do you like best about working at River City Bank? The people. For the most part, a bank is a bank is a bank. But what sets River City Bank apart is the people – both colleagues and clients. RCB stays true to its value of employing the best, and it shows. When a client says, “You really enjoy your job, don’t you?” I feel it is the most fulfilling compliment. I know my client has confidence in me and can see the joy I bring to my work.

July 18, 2025

The Interest Rate Quandary – When to Lock In

By Dan Franklin, Director of Commercial Real Estate, River City Bank

What’s going to happen with interest rates? Should I lock in now? These are common questions posed to bankers, who are ostensibly experts on the topic. While we can share some key considerations to help optimize the outcome of your decision, such as those presented below, the truth is that we just can’t predict what will happen with long term rates. While the direction of short-term interest rates is often quasi-predictable by using the guidance from the Federal Reserve Board, for example, this is much less the case with long-term rates (e.g. the 10-year treasury note yield) which are driven by market forces.

The challenge is that the U.S. Treasury market is one of the most efficient markets in the world as it’s heavily traded and the market participants are highly informed, sophisticated investors such as banks, corporations, large investment firms and foreign governments. A highly efficient market, in theory, should have prices that reflect all available information and are therefore already priced appropriately. So how does a real estate investor or banker have an edge in predicting this market when effectively competing against this large group of sophisticated investors? Unfortunately, we don’t. Sometimes we bet on interest rates and get it right, but sometimes in Vegas, I win at craps…that doesn’t mean I had an advantage in the game though; I was just gambling and got lucky.

This, of course, is very different than the CRE markets, which are much less efficient due to: (a) the heterogenous nature as every CRE asset is unique, (b) the much smaller number of participants willing to transact on a given asset, and (c) not all information about a piece of CRE is widely known or disclosed. As such, our clients can, and often do, have a clear advantage in the CRE markets.

So, how should one approach interest rate lock decisions? Although difficult to predict the future direction of rates, several key factors should still be considered in arriving at a decision:

1. Is there a prepayment premium on your existing loan?

If so, and it exceeds the net interest savings from a refinance, consider holding off on the refinance. The expected value of betting on rates is essentially $0 (if you subscribe to the above efficient market argument). However, a prepayment premium is a guaranteed expense, so the net “expected value” of the decision would be negative. On the other hand, if the net interest savings generated by refinancing exceed the prepayment premium, refinancing could be a good option.

2. Shape of the yield curve

If the yield curve is downward sloping, the market is anticipating that rates will fall in the future. Of course, that’s not guaranteed to happen, but in this circumstance, delaying a refinance may have a higher probability of being in a borrower’s favor. If it’s upward sloping (the more common and current shape), then, all else the same, there probably isn’t a good reason to delay a refinance.

3. Stagger your loan maturities

For borrowers with multiple properties and multiple loans, consider staggering the maturities of your fixed interest rates to mitigate the risk of being in the market for a massive amount of debt during an inopportune time (e.g. a recession when credit spreads have spiked and/or credit availability is scarce). This is similar to laddering CD investments, only applied to the liability side of your balance sheet.

4. Super low rates / government intervention

There are times when the efficient market hypothesis may fall off the rails, such as the government’s massive intervention in the Treasury markets in response to the COVID-19 pandemic, which helped drive Treasury yields below 1% for most of 2020. When rates get that low, CRE borrowers don’t tend to get the full benefit of further Treasury yield declines as lenders tend to raise spreads and/or set interest rate floors as Treasury yields fall further, which is exactly what we saw in 2020. Therefore, once rates get that low, it’s usually a good idea to seize the day and lock in.

5. Credit spread levels

CRE fixed interest rates tend to be the sum of (a) Treasury yields and (b) credit spreads. In practice, the credit spread for a given loan is set by each lender in a somewhat non-formulaic way. However, because CRE loans are often a substitute investment for publicly traded bonds for the largest institutional lenders, CRE loan credit spreads are correlated with corporate bond spreads. As shown below, there is a resistance level just above a 1.00% credit spread for BBB corporate bonds. In other words, once credit spreads approach that level, it’s unlikely they’ll go any lower, and it may be a good time to lock in a CRE interest rate. They happen to be at that low level now.

With all these considerations in mind, does it still make sense for you to refinance? If so, reach out to your River City Bank contact. With credit spreads down and River City Bank’s commitment to being a low-price leader, we look forward to helping you minimize your interest expense.

July 16, 2025

River City Bank Reports 2025 Second Quarter Net Income of $15.4 Million and a Quarterly Cash Dividend

The Bank Crossed the $500 Million Milestone in Shareholders' Equity for the First Time in its History

SACRAMENTO, Calif. — River City Bank (the Bank) reported net income of $15.4 million, or $10.52 per diluted share, for the quarter ended June 30, 2025, which compares to $17.2 million, or $11.66 per diluted share, for the same period in 2024. Net income was $27.7 million or $18.91 per diluted share for the six months ended June 30, 2025, which compares to $35.9 million, or $24.29 per diluted share, for the six months ended June 30, 2024. The Bank’s earnings for the six months ended June 30, 2025 resulted in an 11.1% return on equity capital and 1.04% return on assets. The Bank’s book value per share rose to $356 as of June 30, 2025 from $310 per share as of June 30, 2024.

Significant items impacting quarterly net income for June 30, 2025 and 2024 include the following:

Higher loan balances – Average loans outstanding for the quarter ended June 30, 2025 were $478 million higher than the same period in the prior year, thereby increasing interest income from loans despite a 0.21% decrease in loan yields to 5.38% (including the impact of fair value hedges) compared to the same period in 2024.
Deposit growth – Average deposits for the quarter ended June 30, 2025 grew by $259 million compared to the same period in the prior year, partially supporting the Bank’s loan growth, with the remainder financed by a reduction in excess cash balances. Cost of funds decreased for the quarter ended June 30, 2025 by 0.20% to 2.91% from the same period in 2024.
The Bank recognized a $2.6 million reduction to income related to free-standing interest rate swaps during the current quarter compared to $2.1 million increase to income in the prior year quarter, or a variance of $4.7 million when comparing the two periods. The current quarter impact is made up of a mark-to-market loss of $4.0 million, partially offset by $1.4 million in net payments received from swap counterparties. These swaps were 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. Until these interest rate swaps are designated as a hedge to specific assets or liabilities, the mark-to-market fluctuations (positive and negative) will flow through the income statement.
The Bank recognized zero provision for credit losses for the current quarter compared to a provision of $3.0 million for the prior year quarter. The Bank had nearly zero non-performing loans as of June 30, 2025, and the Bank’s Allowance for Credit Losses for Loans was 2.33% of Gross Loans as of June 30, 2025.

“The decrease in earnings vs. the prior year period is primarily a function of the accounting for a small portion of our interest rate swap portfolio. All our swaps have been executed to hedge our interest rate risk – none are for speculative purposes. As such, short-term mark-to-market gains and losses in the portfolio are not reflective of the long-term benefit to our balance sheet position,” said Steve Fleming, president and chief executive officer. “The Bank continues to perform at a high level, as reflected in the metrics of return on equity, return on assets, and operating efficiency. Credit quality remains pristine as we have not suffered any material losses on loans originated since the current management team took over in 2008. On the other hand, loan growth has been slower in the first six months of 2025 than in recent years due to reduced borrower demand which is driven by a perception by borrowers that (a) interest rates are high (and will decline) and (b) the outlook for the economy is more uncertain than normal. Rest assured that we will be well positioned to return to our more normal loan growth once borrower demand picks up.”

“The Bank’s high quality investment securities portfolio continues to perform well with small unrealized losses of 0.8% and the Bank continues to maintain high levels of liquidity with $964 million of on balance sheet cash and investments combined with nearly $1.7 billion in available borrowing capacity,” said Brian Killeen, chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 36% efficiency ratio for the six months ended June 30, 2025.”

Shareholders’ equity for River City Bank on June 30, 2025 increased $25 million to $510 million when compared to $485 million as of December 31, 2024. The increase was driven primarily by the current year retained earnings and an increase in the value of the investment portfolio. The Bank’s capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.4% as of June 30, 2025.

Additionally, Mr. Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.40 per common share to shareholders of record as of July 29, 2025, and payable on August 12, 2025.

View the 2025 Second Quarter earnings data.

July 7, 2025

River City Bank Expands the Board of Directors with Addition of David Lichtman

Former First Republic Bank executive David Lichtman has been appointed to the Board of Directors for River City Bank

SACRAMENTO, Calif. - River City Bank announced today that David Lichtman, former First Republic Bank executive, will be immediately joining the Board of Directors.

Mr. Lichtman held various positions during his 37-year tenure at First Republic Bank. As a longtime leader in his role as Senior Executive Vice President and Chief Credit Officer, his responsibilities included credit administration and overseeing a loan portfolio exceeding $170 billion.

"First Republic Bank had exceptional credit quality over a long period under David's leadership. With his extensive experience in banking and specific expertise in commercial lending in the San Francisco Bay Area, Mr. Lichtman will be an excellent addition to the RCB board," said Steve Fleming, President and CEO of River City Bank. "I am confident that he will be a valuable contributor in helping the Bank achieve its growth goals."

"We are excited to welcome David to the board," said Shawn Kelly Devlin, chairman of the board at River City Bank. "The Bank will benefit from his expertise in the Northern California commercial lending market."

Mr. Lichtman holds a bachelor's degree from Vassar College and an MBA from the UC Berkeley Haas School of Business. He is also a lecturer in real estate finance and development at the University of California, Berkeley. With a deep commitment to education and the youth in our community, he has served on the Board of Directors at Leadership High School, as a mentor with the Big Brothers Big Sisters of the Bay Area, and as a life-skills mentor to at-risk students at Megan Furth Academy. David currently serves on the Board of Directors at the Fort Mason Center for Arts & Culture.

July 2, 2025

Meet Riley Gardner

As one of River City Bank’s Commercial Banking Business Development Officers, Riley Gardner is tasked with developing new business within the greater Sacramento region and expanding the Bank’s presence into the Reno market. We spoke with the Sacramento native and outdoor enthusiast about the importance of keeping one’s word, perseverance, and the valuable life lessons passed on from his grandfather.

Hometown: Sacramento. Believe it or not, I am a 7th generation Sacramentan. My wife and I both went to the same elementary school and now live within a mile of where we both grew up.

First Job: Various food service businesses for close to minimum wage. The experience gave me respect and empathy for people in those types of jobs.

First Car: I drove an old Acura Legend with a broken air conditioner. Sacramento summers were rough!

Favorite Quote(s): “Run when you can, walk if you have to, crawl if you must; just never give up.” – Dean Karnazes

Favorite Movie: The Revenant.

Favorite Music: Classic rock. There’s nothing like a little Lynyrd Skynyrd to get fired up.

Favorite city to visit: This is a tough one, but let’s say Beijing. After college, I worked in China for five years and led a business development team for a Chinese tech company. My bank co-workers would be rolling their eyes at this response because I talk about China a lot. It was a great life experience and period of learning for me. I am still nostalgic about it.

Favorite place in Sacramento: I love the Sierras and the American River. Whether it is trail running, hunting, fly fishing, skiing, backpacking, or something else, I have a constant smile on my face when I am outdoors. I think my family has finally learned not to worry about me out there (I hope?).

First site or app you check in the morning: Bloomberg. I am somewhat addicted to market and financial news.

What are you reading right now? The Economist is a staple for me. Lately, I have also been reading books about mountain men of the Old West.

Morning ritual: Ideally, I take our dog for a run by the river, then go get a coffee. On special days, I add cinnamon rolls from Ettore’s.

If you have an extra hour in the day, how would you spend it? Cooking something on the barbecue or smoker. A beer after work with friends would be great too.

Radio or podcasts? Podcasts and audiobooks. For podcasts, I like Odd Lots (Finance and Economics), Planet Money (Economics), and MeatEater (Hunting).

Riley Gardner with his grandfather, Jon.

Riley with his grandfather, Jon.

What is something people would be surprised to know about you? Maybe that I run ultramarathons and actually enjoy it? 100 kilometers is the furthest race I have finished. I know… most people don’t like driving that far. I think doing hard things helps you become better at doing other hard things.

Which causes/nonprofits do you support? I am proud of the Kelly Foundation’s support of various nonprofits in the local community. I am involved in the Capital Region Family Business Center, and support the American River Parkway Foundation, California Waterfowl, and Ducks Unlimited.

What is your idea of perfect happiness? Watching the sunrise from the top of a mountain or a duck blind, or a date night with my fiancée (that last one will keep me out of trouble).

What is your greatest fear? Quitting or not giving my best effort in something.

Which person do you most admire? My grandfather. He was a relentlessly driven, positive, and generous person who became very successful and had fun through every step of the journey. I am extremely grateful for the time and experiences he shared with me, and the qualities of character he reinforced in me. I tried to absorb as much of his wisdom and attitude as I could.

What is your greatest extravagance? Cinnamon rolls, fancy whisky or tequila, and time in the wilderness.

What is your current state of mind? Grateful. Positive. Hungry.

What was the best piece of business advice you were given when you were starting out? (Or a piece of advice you’re glad you ignored?) My grandfather used to say: “There is one thing you have that no one can ever take from you – your word. Always keep your word, and don’t give it away too easily.” He was also a strong advocate of having a ten-year plan and updating it every year. I still do this.

What do you consider the most overrated virtue? It is not really a virtue, but I think fear is overrated. I think we grow the most by setting big goals, taking calculated risks, and fighting through the challenges as they come.

What is your biggest takeaway from Covid-19? It has been a challenging experience, but people are more resilient than we give ourselves credit for.

What do you like best about working at River City Bank? We have a very smart and hardworking team of people that really care about our customers and improving the Bank. The combination of great people, outstanding customer service, and very competitive interest rates have enabled the Bank to thrive and achieve exceptional growth over the past decade. Steve Fleming has really done a great job developing such a successful and scalable business model.

June 23, 2025

Cash Scams on the Rise

Across the country, individuals are being deceived into withdrawing large sums of cash from their banks or credit unions and handing it over to complete strangers, resulting in devastating, irreversible financial losses.

Scammers manipulate their targets into secrecy, instructing them not to tell anyone, not even their spouses, and warning them not to trust law enforcement. Victims are led to believe their phones are tapped, their homes are under surveillance, and their cooperation is critical to protecting themselves, their families, or even national security.

What Banks are Seeing

Bank employees across the country are witnessing scams in real time. Victims, coached by scammers, often lie—claiming they’re renovating a home or traveling abroad—to justify large cash withdrawals. When bank staff intervene, they’re often met with anger, even though they’re trying to prevent a financial disaster.

Banks are always vigilant, but they can’t stop every scam. If a bank employee questions your withdrawal, thank them. They might be saving you from a devastating loss.

Don’t Be a Victim – Recognize the Scam

Scammers often spoof legitimate phone numbers and use fake credentials from trusted institutions like Amazon, the FTC, or law enforcement. They speak with urgency and aggression, refusing to talk to anyone but the intended victim. They demand secrecy and isolate their targets from support systems.

While tactics evolve, many scams share common patterns:

Criminal Allegations: Victims are told their identity was used in crimes like drug trafficking or money laundering. They’re asked to “verify” their identity using personal information and threatened with arrest if they don’t comply.
Fake Legal Penalties: Claims of missed jury duty or court dates are used to demand immediate payment to avoid arrest.
Spoofed Texts: Messages appear to come from government agencies, requesting information for passport or driver’s license renewals.
Security Alerts: Victims are told their personal data has been compromised and must call a number immediately, leading them deeper into the scam.
Lottery & Grant Scams: Victims are told they’ve won money or qualified for a grant but must pay taxes or fees to claim it.
Terrorism Claims: Victims are told their bank or retirement accounts are at risk of being used by terrorists. A fake “FBI agent” offers to transfer the money to a “safe” account.
Romance Scam Follow-Ups: After cutting off a romance scammer, victims may be contacted by someone posing as law enforcement, claiming they’re now implicated in a crime and must pay to clear their name.

Prevention Tips

Education is the strongest defense. Remember:

No government agency or law enforcement officer will ever ask you to hand over cash in person or by mail.
No legitimate organization will ask you to stay on the phone during a bank visit.
Never give out personal information unless you’ve independently verified the caller’s identity.
Prepaid cards, cryptocurrency ATMs, and wire transfers are red flags.
Amazon does not transfer customers to the FTC or CIA. If in doubt, hang up and contact the company directly.
The CIA is not going to call you. And if someone says they’re from the FTC and transfers you to the CIA, it’s a scam.

Final Advice

Research any phone number before calling it back. A quick online search can help identify spoofed numbers.
Talk to someone you trust. Scammers rely on isolation and secrecy.
Share this information. You could save someone from losing their life savings.

These scams have been around for years, but they are growing more sophisticated—and more profitable. Stay informed and don’t become the next victim.

June 23, 2025

Executive Forum: Navigating the Shifting Landscape of the California Commercial Insurance Marketplace

River City Bank kicked off the 2025 Executive Forum series with the timely topic of the commercial insurance market in California. Held in the elegant Magnolia Ballroom at the Kimpton Sawyer Hotel in downtown Sacramento, the event brought together a packed house of industry professionals, business leaders, and community stakeholders.

The highlight of the forum was a standout panel of experts featuring Richard Carillo of Travelers Insurance, Edward Johnson of Bender Insurance Solutions, Mark Sektnan of the American Property Casualty Insurance Association, and Stephen L. Young of the Independent Insurance Agents and Brokers of California. The conversation was moderated by River City Bank President and CEO Steve Fleming, who guided the panel through a wide-ranging dialogue on the state of commercial insurance in California.

Topics included the implications of recent legislative changes, the growing complexity of claims trends, and the impact of plaintiff attorneys on the marketplace. Panelists also weighed in on the unique regulatory strategies unfolding at the state level and shared perspectives on the shifting risk environment facing California businesses today.

The event wouldn’t have been possible without support from our sponsors: Bender Insurance Solutions, BFBA, Murphy Austin Adams Schoenfeld LLP, and Foresight IT. Your continued partnership is instrumental to the success of the Executive Forum series, and we are grateful for your contributions.

We are excited to keep the momentum with the rest of the 2025 series and continue the conversations, especially those that inspire ideas and support our business community.