Page 3 – River City Bank

September 24, 2024

Client Profile: Murphy Austin

Celebrating 25 Years of Legal Expertise in Northern California

For Murphy Austin, it's not just business. It's also personal. The Sacramento-based law firm places the highest value on building meaningful relationships with their clients and within the community. Murphy Austin attorneys believe that deep trust between clients and attorneys is an essential part of delivering the kind of highly personalized service that helps businesses grow and prosper. By seamlessly integrating legal services from their complimentary practice areas, Murphy Austin is able to provide clients with the expertise and responsiveness typically found at larger law firms while nurturing the direct and personal relationships that often get lost in the mix.

We had the opportunity to speak with Vince Wong, a partner with the Real Estate Law Practice Team at Murphy Austin, to discuss what sets this local firm apart from others and how it distinguishes itself from larger law firms.

How long has Murphy Austin been serving the Sacramento Region?

We are happy to announce that Murphy Austin is celebrating its 25th anniversary this year. When Murphy Austin was formed in 1999, the founding partners left a large institutional Sacramento firm to carve a new path forward focused on service — service to each other, our clients, and our community.

Murphy Austin began with 20 attorneys. I joined the firm in 2017. Today, Murphy Austin has 37 attorneys with demonstrated experience across 14 practice groups, including business and commercial real estate transactions, construction and commercial litigation, healthcare, employment, nonprofit, corporate, and tax law. Our group unites an interdisciplinary team of attorneys, with each attorney bringing their unique expertise to the table to provide efficient and comprehensive service to our clients.

Vince Wong, Partner | Real Estate Practice

What makes Murphy Austin different from other law firms in the area?

Our emphasis on service and trust sets us apart. We focus on building lasting relationships with our clients that support their long-term goals. Our attorneys strive to deeply understand client goals and challenges. For us, this level of service involves much more than just making team members available to clients; we always aim to leverage our community connections to be the best possible resource to our clients. Whether it’s connecting clients to an accounting firm, an attorney who practices outside of our areas, or environmental consultants in the Sacramento region, Murphy Austin prides itself on going above and beyond for its clients.

What are the benefits of going to a smaller local law firm like Murphy Austin than to a larger, multi-location firm?

At Murphy Austin, clients always know who they will be working with, and that they’ll get the personalized attention they deserve. Assignments aren’t just pinned to a board to be picked up by whoever happens to be available, like they are in larger firms.

Along the same lines, while we serve all of California, we are firmly rooted in Sacramento. We have built and maintained relationships with community leaders, public entities, and other local decision-makers throughout the region. We are proud to be part of this community and we believe that this commitment to our region plays a big part in building trust with our clients.

What community organizations does Murphy Austin support?

Murphy Austin supports a wide range of community organizations, from longstanding relationships (like our longtime corporate partnership with the Crocker Art Museum and 100 Percent Club membership in the Sacramento County Bar Association) to many other causes that are important to those at the firm. In particular, Murphy Austin supports the growth of nonprofit organizations working to solve problems in our region and enhance our community's health, literacy, and culture. We support many nonprofits in the region, including Unity Bar, Sacramento Literacy Foundation, and PBS KVIE Public Television, to name a few. We also work with Capital Pro Bono, whose mission is to secure access to justice for low-income residents and the firm supports Legal Services of Northern California, which provides legal assistance to low-income families and individuals.

What would you consider the perfect day in Sacramento?

Monday through Friday, my perfect day is being in my office assisting clients however I can to help their businesses grow.

That said, my perfect day off starts with grabbing a coffee at Old Soul, then wandering around the Ice Blocks for a bit before grabbing lunch at Paesanos, Pazza Notte, or Drake’s, reading for a bit at Jackrabbit Brewing or Device, stopping by Incredipets to buy toys for my dog Emmy, and then rewarding myself for being so nice to Emmy with a 50/50 at Gunther’s.

Why River City Bank?

In our experience, River City Bank shares many of the same values as Murphy Austin. River City Bank has all of the resources to serve us while it still very much feels like a community bank. We never have to dial through a phone tree to get to someone who can help. In fact, I think it says a lot about River City Bank’s culture that we’ve been able to maintain such long-lasting relationships with so many of the same people. We look forward to many more years of the same!

To learn more about Murphy Austin and the services they provide, visit their website at www.murphyaustin.com.

September 24, 2024

L5 Investments Capital Cup: 10 Years and over $18 Million Raised

River City Bank's Steve Fleming, with daughter Angela, and Adham Sbeih of Socotra Capital Management

River City Bank’s President and CEO, Steve Fleming, played alongside the Bank’s Board Member, Eric Johnson, in the 10th year of the Capital Cup. This year’s event raised over $2.5 million for local charities, surpassing the goal of $2.0 million. Since its inception, the L5 Investments Capital Cup has been a beacon of hope for the Sacramento community, raising over $18 million for over 92 deserving charities.

The Capital Cup, with its adaptation of the historic Ryder Cup format, is not just a golf tournament. It’s a celebration of community pride, healthy competition, and philanthropy. By adopting this traditional format, the event brings together 32 business leaders from the Sacramento region in a shared mission to raise funds for the most deserving charities. Each year, the participants split into two teams for an exciting 3-day golf competition. Donors can support their favorite player (or their favorite charity), as each player is competing to benefit their favorite charitable organization.

For ten consecutive years, Steve Fleming has supported Easterseals of Superior California. Playing alongside his daughter Angela who caddied for him, Steve helped to raise $60,000 this year for Easterseals. His team, the River City Allies, also marched to victory on the golf course which resulted in even more money going to their charities of choice.

Special recognition was paid to River City Bank’s Board Member, Kerry Gordon, as he received the coveted purple jacket. There has only been one other recipient of the purple jacket: Curt Rocca, DCA Capital Managing Partner and Capital Cup Founder. The jacket reflects an extraordinary contribution to the Capital Cup since its formation a decade ago. The purple jacket is also intended to pay homage to the green jacket given to the winner of the Master’s golf tournament.

To learn more about the L5 Investments Capital Cup, visit https://capitalcup.mightycause.com/event/L5investments-2024.

RCB Board Member, Kerry Gordon, receiving the Capital Cup's purple jacket

September 24, 2024

Quishing is the New Phishing

Quick response codes - aka QR codes - have exploded in popularity because they are a convenient alternative to using a complicated web address. It is an easy way to access the information you need by opening your camera app; however, these codes must be treated with caution. Recently, the Federal Trade Commission (FTC) released a consumer alert warning people to be on the lookout for harmful links hidden in QR codes.

Quishing, or QR phishing, is a cybersecurity threat in which attackers use QR codes to direct victims to malicious websites or prompt them to download harmful content. This attack aims to steal sensitive information, such as passwords, financial data, or personally identifiable information (PII), and use that information for other purposes, such as identity theft, financial fraud, or ransomware.

This type of phishing often bypasses conventional defenses like secure email gateways. Notably, many secure email gateways perceive QR codes in emails as meaningless images, making users vulnerable to specific phishing attacks.

What are QR codes?

QR codes are two-dimensional barcodes that are easily scanned with a camera or a code reader application. The main component of a QR code is data storage. QR codes can store significant amounts of information, including URLs, product details, or contact information. Scanning technology allows smartphone cameras or code readers to easily and quickly access the website to which the URL points. QR codes are seen on flyers and advertisements to provide additional information, at restaurants and parking meters to offer a simple self-checkout process, at public places to enable access to free wi-fi.

How does quishing work?

Due to the ease and availability of QR codes, bad actors create fake QR codes which direct users to bogus websites where malware is installed on their devices, or their information can be stolen.

Typically, the attacker will embed the QR code in phishing emails, social media, printed flyers, or physical objects and use social engineering techniques to entice the victims. For example, victims might receive an email urging them to access an encrypted voice message via a QR code for a chance to win a cash prize. Once a victim is directed to a malicious site, they are prompted to enter secure information such as login credentials, financial details, or other personal information. Once this sensitive information is captured, attackers can exploit it for various malicious purposes, including identity theft, financial fraud, or ransomware.

How can you identify quishing attacks?

Think before you scan - It's best not to scan a QR code if it's from an unknown source. If you receive an unexpected email or text with a QR code, confirm the source, especially if it urges you to act immediately. Double-check physical QR codes for any signs of tampering (e.g., the QR code is a sticker, the QR code looks to be out of place, and instructions for the QR code don’t match the style and format of the larger display).
Trust, but verify - If a message seems legitimate, verify the sender's identity using a confirmed phone number or website. Be cautious with URLs and avoid sharing personal info or making payments through QR code-linked sites to reduce the risk of phishing attacks. Before accessing any website from a QR code, verify the legitimacy of the site.
Email domain does not match - If you receive an email with a QR code claiming to be from Company X, but the sender's email is from Gmail or an unfamiliar domain, it's likely a phishing attack.
Keep your OS current - The FTC recommends you protect your phone and accounts by updating them to the latest OS and placing strong passwords and multifactor authentication on them.

Legitimate companies will always send instructions for any necessary actions and will not send a QR code for account verification. Similar to SMS messages from unknown sources, these QR codes could conceal malicious intent and should be scanned with caution.

July 17, 2024

River City Bank Reports Strong Net Income of $17.2 Million for Q2 2024, Record Net Income of $35.9 Million Year to Date, Crossing the $5 Billion Asset Threshold, and Quarterly Cash Dividend

SACRAMENTO, Calif. — River City Bank (the Bank) reported net income of $17.2 million, or $11.66 per diluted share, for the quarter ended June 30, 2024, which compares favorably to the $14.4 million, or $9.65 per diluted share, for the same period in 2023. Net income was $35.9 million or $24.29 per diluted share for the six months ended June 30, 2024, which compares favorably to the $27.3 million, or $18.28 per diluted share, for the six months ended June 30, 2023. The Bank’s earnings for the first six months ended June 30, 2024 represented a healthy 16.6% return on equity capital and 1.41% return on assets. The Bank’s book value per share rose to $310 as of June 30, 2024 from $261 per share as of June 30, 2023.

Significant items impacting quarterly net income for June 30, 2024 and the same period in 2023 include the following:

Higher loan balances – Average loan outstandings in the current quarter were $520 million higher than the prior year quarter, helping to increase net interest income by $5.0 million over the same period in 2023 despite rising deposit costs.
Increased cash and investment balances – Average cash balances grew by $331 million and average investments balances grew by $118 million, when compared to the same period in 2023. The increased balances, at higher yields, provided a $9.7 million increase in income from cash and investments versus the prior year quarter.
Deposit growth – Average deposits grew by $946 million compared to the same period a year earlier, supporting the Bank’s loan growth while reducing higher cost borrowings and increasing liquid assets.
The provision for credit losses on loans for the current quarter of $3.0 million was lower than the $6.5 million that was recorded for the prior year quarter. The Bank continues to add provision for credit losses as the loan portfolio grows. During the quarter ended June 30, 2024, the Bank did not experience any actual credit losses and the Bank’s Allowance for Credit Losses for Loans was a robust 2.60% of Gross Loans as of June 30, 2024.

“The Bank crossed an important milestone in our history as we ended the quarter with over $5 billion in total assets. Our customers continue to appreciate the value the Bank provides with over 50 years of consistently exceptional service as evidenced by our significant growth in total deposits from $3.6 billion at June 30, 2023 to $4.5 billion as of June 30, 2024,” said Steve Fleming, president and chief executive officer. “The Bank’s balance sheet remains highly liquid with $377 million in cash and $726 million in high-quality short duration investments (investment portfolio effective duration of only 1 year). At the same time, our loan quality remains pristine with 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. We will remain diligent with our monitoring of potential impacts to 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 of 1.7 percent and there are no investment securities categorized as held-to-maturity,” said Brian Killeen, chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 26 percent efficiency ratio for the six months ended June 30, 2024.”

Shareholders’ equity for River City Bank on June 30, 2024, increased $29 million to $447 million, when compared to the $418 million as of Dec. 31, 2023. The increase was driven by growth of the current year’s retained earnings. The Bank’s capital ratios remain well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 8.7% as of June 30, 2024.

Additionally, Steve Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.37 per common share to shareholders of record as of July 25, 2024, and payable on Aug. 8, 2024.

June 19, 2024

River City Bank’s 2024 Executive Forum Series

Picture 1: Photo of three women at a table. Picture 2: Photo for two men and two women with microphones

River City Bank's Executive Forum Series is an exclusive program tailored for senior executives. The Forum is designed to provide valuable knowledge and insights from business leaders and executives across different businesses and industries. Handpicked for their expertise on relevant topics for today’s businesses, panelists offer guidance and recommendations based on their professional experiences. The presentations are followed up with roundtable discussions with attendees to discuss key takeaways from their experiences.

With two successful programs already under its belt, River City Bank's 2024 series is off to a solid start.

March 27, 2024 – “The Growth Engine: Driving an Employee Development Culture"

Organizations that offer quality professional development and training opportunities can reap additional rewards when those programs result in significant performance improvement. When employees feel valued by their employer, the result is often improved loyalty, productivity, and engagement with their organization.

The March Executive Forum, "The Growth Engine - Driving an Employee Development Culture," offered a compelling overview of the importance of professional development and training in an organization. Moderated by Eric Anderton, CEO of Construction Genius, the all-star panel was comprised of Mary Teichert, President of Teichert Construction, Sue Weiler-Doke, Senior Consultant of D. Brown Management, and Pat Lewis, Chief Operating Officer of River City Bank. These experts discussed how creating open conversations with employees and balancing a supportive work culture with continuous learning can benefit employers and employees alike.

May 30, 2024 – “How to Effectively Structure a Finance Department”

The Executive Forum in May focused on structuring finance department roles and responsibilities for growth and success. The conversation centered around how companies develop, nurture, and maintain an airtight finance team to improve the bottom line.

The discussion, led by Moderator Rod Barbour from Lawson Mechanical Contractors, underscored the Finance Department's strategic role as a unifying factor across different parts of an organization. Panelists Rebecca Freeman of Chordline Health, Lorie Symon of Aerometals, Inc., and Brian Killeen from River City Bank shared their insights on how these essential roles within Finance can be harnessed for organizational success.

With the ongoing support of our sponsors, Bender Insurance Solutions, BFBA, LLP, and Murphy Austin Adams Schoenfeld LLP, we are excited to present more insightful programs for the business community.

June 19, 2024

Meet Olivia Gray

Woman with curly red hair wearing a white colored shirt in front of a window

Olivia Gray serves as an AVP/Portfolio Manager for the Bank's Clean Energy Division. In this role, she underwrites and manages a loan portfolio of clients involved in the clean energy industry, such as Community Choice Aggregators, renewable project operators, and companies engaged in clean tech solutions. She also oversees one of the Bank’s largest deposit portfolios, assists clients with day-to-day deposit needs, and ensures clients are benefiting from River City Bank’s competitive deposit account products. Liv joined the Bank in 2019 after graduating summa cum laude from UC Davis with a Bachelor of Arts Degree in Economics and minors in Environmental Horticulture and European History. Liv, a passionate cinephile, shared her favorite spots in her hometown of San Francisco, her love for reptiles, and why she believes that slow and steady progress will always win the race.

Hometown: I was born in San Francisco, CA, but frequently moved between Northern and Southern California while growing up.

First Job: After working various odd-and-ends jobs in high school (e.g., tutoring, babysitting), my first job was at the UC Davis Campus Plant Nursery while in college.

Favorite Quote(s): I often find myself saying, “Drop by drop is the water pot filled,” which is a partial quote I read a while back. That saying is very encouraging to me, particularly in situations that seem frustrating or daunting. Knowing that with slow and steady progress, anything can be completed.

Favorite Movie(s): Watching movies is one of my favorite pastimes, so it’s a pretty even tie between Metropolis (Fritz Lang, 1927), Nosferatu (Werner Herzog, 1979); Blade Runner (Ridley Scott, 1982), and Arrival (Dennis Villeneuve, 2016).

Favorite song: “Passenger” by Iggy Pop, will always be special to me.

First concert: The Black Keys with my dad and brother. My dad and I used to play covers of songs from The Black Keys' El Camino album (me on piano and him on guitar), so that was a meaningful outing.

Favorite city to visit: I’m biased, but San Francisco! There are so many unique, diverse parts of the city to explore, and the food is beyond compare.

Favorite place in Sacramento/Bay Area/Southern California: I really love the coastal drive from San Francisco to Pacifica, especially on a foggy day.

First site or app you check in the morning: Either my e-mails, Instagram, or The New York Times (Connections, anyone?).

Woman in a jacket standing in front of a blue sky and a field of purple flowers

What are you reading right now? I’m about to start a short story that was highly recommended online: “The Invention of Morel” by Adolfo Bioy Casares. Short stories make prioritizing reading a bit more manageable, especially with a busy schedule!

Morning ritual: A few sun salutations, stretching, and coffee!

If you have an extra hour in the day, how would you spend it? Practicing my instruments, swimming, playing tennis, or learning a new art craft.

Favorite podcast(s)? My favorite podcasts are currently Ologies with Alie Ward and The Partially Examined Life. With Ologies, I love the deep dive into very niche scientific and biological studies, especially since those aren’t fields I am exposed to on a daily basis. For the latter, I really enjoy the discussions that merge traditional philosophical concepts with modern-day, pop culture examples.

Who is your favorite hero/heroine of fiction? Tank Girl, a 1980s cartoon character. She rebels against the greedy corporations that prevent equitable, public access to water and electricity, which leaves many to fend for themselves in a post-apocalyptic setting. This is quite fitting for being part of RCB’s Clean Energy Division; the division supports the expansion of renewable energy projects, green tech, energy equity and resiliency, and community-led energy programs nationwide – all of which hopefully will help keep that dystopian scenario fiction!

Which talent would you most like to have? It would be incredible to either pick up new languages naturally or have a knack for playing instruments by ear.

What is something people would be surprised to know about you? I really love reptiles! I had a lovely 5-foot ball python for a while, and hope to one day have a pet chameleon.

What is your greatest extravagance? It isn’t truly extravagant, but binge-watching any Gordon Ramsay or Food Network series on the weekend is a guilty pleasure of mine.

What is your current state of mind? Gratitude! I’m very appreciative of my current work and personal life and thankful for the family and people who supported me along the way.

What do you consider the most overrated virtue (or underrated detriment)? I think there’s a certain level of conformity that can unintentionally occur in large group settings, whether at work or socially. Provided it’s the time, place, and appropriate, it’s important for people to respectfully voice their opinion, even if it differs from the status quo. Sharing different perspectives can encourage beneficial growth and change rather than falling into stagnancy.

What was the best piece of business advice you were given when you were starting out? Like the rules of improv, “Just say yes!” Take the meeting, respond to the prospect, and volunteer to help internally when feasible. You never know where an opportunity will lead.

What do you consider your greatest achievement? Most recently, I’m honored and proud to be the newest inductee into River City Bank’s esteemed President’s Club!

What do you like best about working at River City Bank? Although this is my first professional job, I can’t imagine any other company does “it” like River City Bank! I appreciate management’s attention to employee valuation, and offering of flexible remote working options. The benefits and healthy work culture may partly be due to the high caliber of employees – everybody I’ve worked with is so hardworking, motivated, dedicated, and kind. Lastly, the day-to-day work with the Clean Energy Division is engaging and mentally stimulating; there’s never a dull moment when you combine banking with the energy industry!

June 19, 2024

Pig Butchering: What It Is and How to Protect Yourself

Image of a pig standing near a cell phone

In 2023, the Financial Crimes Enforcement Network (FinCEN)^[1]." issued a critical alert about a virtual currency investment scam known as "Pig Butchering." According to most recent estimates, pig butchering schemes cost victims $3.3 billion in 2022, the most recent year that data was available.

What is "Pig Butchering"?

Pig butchering is a type of online investment fraud where scammers create fake personas to trick victims into fraudulent investment schemes by building trust over time. Scammers use various tactics to deceive victims into parting with their money. They establish an emotional connection and gain the trust of their victim over the long term. Unlike other scams that involve smaller, frequent transactions, pig butchering typically aims for a large, single payday that can drain victims' life savings.

Charcteristics of Pig Butchering

Gaining trust: Scams often begin with casual conversations initiated by the scammer, who may pretend to have received the victim's contact details accidentally or through a mutual acquaintance. These initial interactions are designed to build trust and may involve the use of attractive profile images to lure victims.
Introducing the investment: As trust is established, the scammer introduces the victim to a fraudulent investment scheme, promising significant returns in a short period. The scammers use persuasive tactics and counterfeit investment portfolios to convince victims of the scheme's legitimacy.
Collecting money: After convincing the victim to invest, scammers collect funds, often through digital payment platforms or cryptocurrencies, to complicate tracking and tracing of the transactions.
Disappearance of the scammer: Once a substantial amount has been collected, or when victims attempt to withdraw funds, scammers become unreachable, delete their online presence, or create new identities, leaving the victims with no way to recover their funds.

Investors need to be vigilant and conduct thorough due diligence before investing in cryptocurrency or any other investment scheme. Be wary of unsolicited investment offers and approach overly promising investment proposals skeptically. Review these actions to protect yourself:

Be careful who you trust: Fraudsters do their best to create emotional connections with their victims. Think critically before letting your guard down with someone you just met. They use your social media information and anything they can get you to share to manipulate and take advantage of you.
Beware of red flags: Never rush into any investment. Only use well-known and reliable trading platforms, including Cryptocurrency exchanges.
Don’t fall for FOMO: Fraudsters try to get victims to feel the Fear Of Missing Out (FOMO). Be very skeptical if a new acquaintance tries to get you to invest fast so you don’t miss an opportunity. That is often a trick to get you to give them money before your judgment kicks in.
Trust your instincts: Think twice before investing - if it seems too good to be true, it probably is.
Keep your information to yourself: Do not provide details about your financial positions or share sensitive information online or on unverified sites.
Verify Information: Validate individuals you meet online are trustworthy through mutual friends or acquaintances. Verify investment opportunities by conducting independent research and seeking advice from trusted financial professionals to ensure legitimacy.

Be Cautious and Conduct Your Due Diligence

"Pig butchering" continues to pose a significant threat to investors. Don’t make rash financial decisions with too-good-to-be-true promised results with people you meet online. If you suspect you are involved in a cryptocurrency scam or fraudulent activity, immediately report it to authorities and your financial institution. Always be cautious and conduct due diligence when considering investment opportunities.

Learn More. Read ‘Pig Butchering' Scams: What They Are and How to Avoid Them | FINRA.org.

[1] FinCEN is a bureau of the U.S. Department of the Treasury. FinCEN’s mission is to safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.

April 29, 2024

River City Bank Announces Changes to the Board of Directors (Johnson)

SACRAMENTO, CA -River City Bank announces changes to the Board of Directors that were effective April 24, 2024. Paul Duncan, a board member since 2021, retired from the Board as he is relocating out of California. Duncan, a retired bank executive, joined the Board in 2021 and brought extensive government, commercial, and investment banking strategy and experience to the River City Bank Board.

“As someone who has worked extensively in the field of commercial banking, Paul brought a wealth of relevant knowledge to the Board. We will miss Paul and wish him all the best with his move,” said Steve Fleming, President and CEO of River City Bank.

Eric Johnson, a technology strategist and adjunct lecturer for UC Davis, is joining the Board. Johnson was previously a partner at multiple managed IT service providers including GNT Solutions, Inc., which was acquired in 2021 by Meriplex, an IT consulting firm specializing in security, compliance, IT management, helpdesk, and disaster recovery/avoidance. At Meriplex, he was the Director of Corporate Development from 2021 to 2023. He managed national mergers and acquisitions in that role, serving as an escalation point for complex technical issues and strategic corporate discussions.

Johnson held the position of SVP - Chief Information Officer for River City Bank from 2013 to 2017. “As the former CIO of River City Bank, Eric understands our organization’s culture and business model. Cybersecurity is a critical part of a board’s overall responsibility for risk management and Eric will provide guidance on our security strategies and oversight of our execution to maintain the safety and security of our customers’ assets and data,” commented Steve Fleming.

“We are pleased to welcome Eric to the Board of Directors,” said Shawn Kelly Devlin, Chairman of the Board, River City Bank. “Eric is an information security expert, and he will further enhance the diversity and expertise of our Board.”

Johnson earned a Bachelor of Science in Computer Science and a Master’s Degree in Managerial Economics from the University of California at Davis. He serves on the board of the Kelly Foundation and is also on the Investment Committee for the Sacramento Region Community Foundation. He has previously served on the boards of Easter Seals of Superior California and The First Tee of Greater Sacramento. When he isn’t lecturing at his alma mater, he can frequently be found on the golf course or the softball diamond or spending quality time with his wife and two daughters.

April 25, 2024

River City Bank Reports 2024 First Quarter Net Income of $18.7 Million and a Quarterly Cash Dividend

SACRAMENTO, CA - River City Bank (the Bank) reported net income of $18.7 million, or $12.63 per diluted share, for the quarter ended March 31, 2024, which compares to $12.9 million, or $8.64 per diluted share, for the same period in 2023. The Bank’s earnings for the quarter ended March 31, 2024 represented a healthy 17.5% return on equity capital and 1.47% return on assets.

Significant items impacting quarterly net income for March 31, 2024 and 2023 include the following:

Higher loan balances – Average loan outstandings for the quarter ended March 31, 2024 were $494 million higher than the same period prior year, thereby increasing net interest income despite higher cost of funds.
Increased cash and investment balances – Average cash balances grew by $533 million and average investments balances grew by $61 million, when compared to the same period in 2023. The increased balances, at higher yields, provided an $11.9 million increase in income from cash and investments versus the prior year quarter.
Deposit growth – Average deposits grew by $1.05 billion compared to the same period a year earlier, supporting the Bank’s loan growth while reducing higher cost borrowings and increasing liquid assets.
The Bank recognized $4.3 million in mark-to-market gains on undesignated interest rate swaps for the quarter ended March 31, 2024 that benefitted from rising interest rates during the quarter. 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 provision for credit losses for loans in for the quarter ended March 31, 2024 was $4.0 million, which was $2.5 million greater than the $1.5 million in the same period in 2023. The increased provision for credit losses for loans reflects the growth in the Bank’s loans as well as concern for continued deterioration in the office segment of the Bank’s commercial real estate portfolio. During the quarter ended March 31, 2024, the Bank did not experience any actual credit losses and the Bank’s Allowance for Credit Losses for Loans was a robust 2.67% as of March 31, 2024.

“Our customers continue to appreciate the value the Bank provides with over 50 years of consistently exceptional service as evidenced by our significant growth in total deposits from $3.4 billion at March 31, 2023 to over $4.3 billion as of March 31, 2024,” said Steve Fleming, president and chief executive officer. “The Bank’s balance sheet remains highly liquid with $503 million in cash and $699 million in high quality short duration investments (investment portfolio effective duration of only 1.1 years). At the same time, our loan quality remains pristine with 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. We will remain diligent with our monitoring of potential impacts to 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 of 1.7 percent and there are no investment securities categorized as held-to-maturity,” said Brian Killeen, chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 24.4 percent efficiency ratio for the quarter ended March 31, 2024.”

Shareholders’ equity for River City Bank on March 31, 2024 increased $17.3 million to $435 million when compared to the $418 million as of December 31, 2023. The increase was driven by current year retained earnings. The Bank’s capital ratios remain healthy and well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 8.5% as of March 31, 2024.

Additionally, Mr. Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.37 per common share to shareholders of record as of May 7, 2024, and payable on May 21, 2024.

February 29, 2024

Celebrating California Hall of Fame Honorees

River City Bank was honored to participate in this year's California Hall of Fame event at the California Museum in Downtown Sacramento. Governor Gavin Newsom and First Partner Jennifer Siebel Newsom inducted the 17th class of honorees, highlighting trailblazers who have embodied the California Spirit. Team RCB was in attendance to celebrate the newest class of inductees, including The Go-Go's, federal judge and civil rights leader Thelton E. Henderson, and basketball star Cheryl Miller, to name a few.

Five women standing in front of a sign that says California

Needless to say, we are "Head Over Heels" with this year's Hall of Fame inductees and congratulate them all on this well-deserved honor.

To learn more about the California Museum and the California Hall of Fame, visit their website at www.californiamuseum.org.