Page 3 – River City Bank

June 22, 2025

The Penny Will Stop Being Manufactured by 2026

The U.S. Treasury Department has announced that it plans to stop manufacturing the penny in 2026 after more than two centuries in circulation. The cost to produce the penny has increased, with each coin costing about 3.7 cents to mint and distribute. The US government lost over $85 million in 2024 to produce about three billion pennies. Over the years, the coin’s size and composition have changed, transitioning from pure copper to a copper-zinc blend. The price of zinc, the primary metal used to make pennies, has more than doubled since 2000. The U.S. Mint estimates that ending production of the penny will save $56 million annually.

Although pennies will soon stop being produced, they will remain legal tender for cash transactions and can still be deposited at banks. With 114 billion coins still in circulation, the US is unlikely to run out of them any time soon. They will gradually disappear from circulation, which may impact future product pricing for cash transactions, requiring prices to be rounded up or down to the nearest five cents.

The important takeaway from this initiative is to note that there are no plans to demonetize the penny so it is not necessary to take action to deposit excess pennies which may be in your homes.

April 23, 2025

River City Bank Announces Changes to the Board of Directors

Stephanie Zarate, Chief Accounting Officer and Treasurer for McClatchy Media, will be joining the Board

SACRAMENTO, Calif. - River City Bank announced changes to its Board of Directors today. Elaine Lintecum is retiring from the Board effective April 22, 2025. Ms. Lintecum, former CFO of McClatchy Media, a national newspaper and digital news publisher headquartered in Sacramento, joined the Board in 2016. "Elaine was a great asset to our board, bringing extensive experience in accounting, finance, treasury management, auditing, and M&A," said River City Bank President and CEO Steve Fleming. "Over the years we have benefited from her leadership, as well as her deep finance and accounting knowledge. Her presence will be greatly missed, and we wish her all the best in her retirement, albeit we will have the benefit of her services for the next year as she has agreed to serve as a consultant to the Board."

Stephanie Zarate, Chief Accounting Officer and Treasurer for McClatchy Media, will be joining the Board effective immediately. Ms. Zarate joined McClatchy Media in 2014 and in the subsequent 10+ years has served in various positions such as Assistant Treasurer and Investor Relations Director, and Corporate Controller and Treasurer before being named to her current role in 2021. Prior to joining McClatchy Media, Ms. Zarate was an Audit Manager at Deloitte and Touche.

"We are pleased to welcome Stephanie to the Board of Directors," said Shawn Kelly Devlin, Chairman of the Board. "With her broad financial experience working for one of the largest and most respected media companies in the United States, she will be a great asset to our board."

Ms. Zarate is a CPA who earned a Bachelor of Science in Accounting from CSU Sacramento and an MBA from the University of California at Davis - Graduate School of Management. She was recently honored with the Rising Star Award from the UC Davis Graduate School of Management Alumni Association. She is also a lifetime member of the Beta Gamma Sigma international honor society.

April 23, 2025

River City Bank Reports 2025 First Quarter Net Income of $12.3 Million and a Quarterly Cash Dividend

SACRAMENTO, Calif. - River City Bank (the Bank) reported net income of $12.3 million, or $8.39 per diluted share, for the quarter ended March 31, 2025, which compares to $18.7 million, or $12.63 per diluted share, for the same period in 2024. The Bank's earnings for the quarter ended March 31, 2025 resulted in a 10.0% return on equity capital and 0.93% return on assets. The Bank's book value per share rose to $345 as of March 31, 2025 from $299 per share as of March 31, 2024.

Significant items impacting quarterly net income for March 31, 2025 and 2024 include the following:

Higher loan balances - Average loan outstandings for the quarter ended March 31, 2025 were $580 million higher than the same period prior year, thereby increasing interest income from loans despite a 0.24% 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 grew by $221 million compared to the same period in the prior year, partially supporting the Bank's loan growth, with the remainder financed via reducing excess cash balances. Cost of funds decreased by 0.19% to 2.91% from the same period in 2024.
The Bank recognized a $5.1 million reduction to income related to free-standing interest rate swaps during the current quarter compared to $6.5 million increase to income in the prior year quarter, or a variance of $11.6 million when comparing the two periods. The current quarter impact is made up of a mark-to-market loss of $6.4 million, partially offset by $1.3 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 provision for credit losses for the current quarter was a reversal of $0.1 million compared to an addition of $4.0 million for the prior year quarter. The Bank had zero non-performing loans as of March 31, 2025, and the Bank's Allowance for Credit Losses for Loans was 2.36% of Gross Loans as of March 31, 2025.

"The Bank continues to perform at a high level. 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. "Our loan quality remains pristine with virtually no delinquencies or non-performing loans. We will remain diligent with our credit monitoring related to potential impacts in the office segment of our commercial real estate loan portfolio and continue to help our commercial customers manage their businesses in the face of economic uncertainty."

"The Bank's high quality investment securities portfolio continues to perform well with relatively small unrealized losses of less than 1.0% 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 39% efficiency ratio for the quarter ended March 31, 2025."

Shareholders' equity for River City Bank on March 31, 2025 increased $13 million to $498 million when compared to the $485 million as of December 31, 2024. The increase was driven by 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 9.3% as of March 31, 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 May 6, 2025, and payable on May 20, 2025.

View the earnings data here.

April 10, 2025

Low Price Lender in CRE Lending

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

I’m often asked: how does River City Bank still make a buck with such low CRE mortgage rates? It’s true that we compete heavily on pricing for both loans and deposit accounts, which results in a lower net interest margin than our industry peers. However, the bank has consistently generated a healthy – well above industry average - return on equity, averaging 15% in the past five years, so our model is working. How? By being a very efficient, low-cost producer. But we didn’t invent this strategy – we simply copied the playbook from some of the most successful businesses; think Costco, Amazon, IKEA, or any company Elon Musk has run, for example. These businesses were all obsessed with cost management and productivity.

While there are, of course, other successful approaches to running a business, producing a good or service at the lowest cost provides substantial competitive advantages and staying power, particularly in times of recession. To achieve this goal, River City Bank’s culture is ruthless with cutting unnecessary expenses – even small ones that ostensibly don’t move the needle – since doing so sends a cultural message that prevents expense bloating. However, there are a couple of big exceptions where we don’t skimp: customer service and compensation for our high-performing employees. Steve Jobs once said: “A small group of A-players will run circles around a large group of B and C-players.” We agree, Steve! And that’s why we invest heavily in recruiting and compensating the most talented bankers. Ironically, this approach still arguably reduces overall expenditures because it produces more high-quality work with fewer people. Also, our clients and mortgage banking partners demand the competency and responsiveness that only A-players can provide, so we don’t consider this strategy to be optional.

River City Bank continues to grow and is always on the lookout for talented bankers – reach out if you know one! In the meantime, thank you for your business!

Dan Franklin manages all of River City Bank’s commercial real estate origination activity throughout California and the western United States. Since joining the bank in 2008, Dan has served in various commercial banking roles, including years as Commercial Banking Director, Business Development Officer, and Relationship Manager. A recipient of the Chartered Financial Analyst designation, Dan received his undergraduate and MBA degrees from the University of California at Davis.

April 10, 2025

Meet Matt Cheeseman

Matt Cheeseman is a Senior Vice President and Business Development Officer at River City Bank. In this role, he focuses on generating new business opportunities for the Bank. He plays a significant part in the bank's commercial real estate lending activities and is a member of a team dedicated to fostering long-term relationships with commercial real estate investors throughout the region. We sat down with Matt to discuss his love for podcasts, his admiration for his parents, and the importance of spending time with family.

Hometown: Rancho Palos Verdes, CA

First job: Busboy/Food Service

First car: Nissan pickup truck.

Favorite movie: Cool Hand Luke. It’s before my time, but there’s something about it.

First concert: Ratt / Poison. I’m not proud. I was very young. My tastes have changed but I still appreciate the movement.

Favorite city to visit: I recently visited San Antonio with my teenage son. I was surprised how much I enjoyed it and would love to visit again. I have been trying to sell it to others.

Favorite place in California: Lake Tahoe. It never ceases to amaze.

First site or app you check in the morning: Probably Outlook, sadly. Then, I’ll check X for news.

What are you reading right now? I’m reading a couple books. Ever Wonder Why? by Thomas Sowell would be my noble answer. However, I’m usually reading a thriller written by a Navy Seal.

Morning ritual: I have a sweet old labrador retriever named Buddy, and I really enjoy our morning walks.

If you have an extra hour in the day, how would you spend it? With family. They’re everything.

Radio or podcasts? Podcasts. I love long-form interviews.

Which talent would you most like to have? I wish I could play the guitar. I’ve tried and it’s not happening.

What is your greatest fear? Easy, getting stuck in a cave or tunnel without being able to turn around.

Which person do you most admire? It’s a tie between my parents. Both are exceptional role models for different reasons.

What do you consider your greatest achievement? I can’t take credit, but I have two amazing sons.

What do you like best about working at River City Bank? The quality of our products. It’s easy to sell true value.

February 25, 2025

The Evolving Needs of Agribusiness Customers

Patrick Imbach manages River City Bank's Agribusiness Division. He knows firsthand how seasonality and unpredictable business cycles impact the financial outcomes for producers, processors, and distributors. Their expertise includes understanding streamlined operations, ensuring ready access to capital, and optimizing cash flow. These are just a few of the advantages of partnering with a bank familiar with agribusiness's intricacies. We spoke with him to gain his insight into the agribusiness landscape in the region.

What are the specific needs of our agribusiness customers, and how have they evolved over the years?

Essential funding for land, equipment, and operational expenses will always be necessary. Still, over the years, agribusinesses have evolved and become more intricate, requiring more sophisticated banking needs. The complexities and increased costs of agribusiness have forced customers to search for more advanced technologies to enhance productivity, complete sustainable practices to meet market demand and increase the longevity of their operations. There is a greater emphasis on risk management as market volatility, supply chain disruptions, and weather events may have a significant impact on specific operations.

The Bank recognizes the ever-changing agricultural environment and has adapted to meet customer needs. Our goal is to have agribusinesses look to us as a business partner and someone who has extensive knowledge of various agricultural operations and markets to help them make educated decisions related to their agribusiness.

How does unpredictability in the weather impact the needs of our agribusiness customers?

Agribusinesses need support to adapt to unpredictable weather patterns. At River City Bank, we understand that drought is often seen in California, as well as untimely rains and other uncontrollable weather factors that might hurt your crops and bottom line. Understanding the seasonal nature of agribusinesses gives River City Bank a competitive advantage that allows us to provide support to your agribusiness. Flexible financing and terms in times of distress can help farmers and ranchers “weather the storm.” Being by your side through these difficult situations helps strengthen our relationship and understand your agribusiness better.

What financial products or services do you think would best support the growth and sustainability of agribusinesses in our current economic climate?

River City Bank can offer financial products and services that are tailored to your agribusiness needs. We offer competitive lines of credit, real estate loans, and affordable cash management services. Along with our financing and cash management services, we provide robust fraud protection, which is essential in every business.

What strategies has River City Bank implemented to support its agribusiness clients?

In response to the growing needs of our agribusiness clients, we have taken significant steps to enhance our support services. Recognizing the unique challenges and opportunities within the agribusiness sector, we have increased our staff by bringing additional relationship managers and analysts on board.

What role does technology play in modernizing agribusiness operations, and how can banks support clients in adopting these technological advancements?

Technology is crucial in modernizing agribusiness by enhancing productivity, improving sustainability, and facilitating market access. River City Bank can support clients in adopting these technologies by providing financing, training, and partnering with tech providers. We work with agribusinesses with varying degrees of complexity and can help identify areas where your agribusiness might benefit from investing in new technologies and connecting you with the right resources.

February 25, 2025

How to Protect Yourself from Scammers Exploiting the California Wildfires

Devastating wildfires have destroyed neighborhoods in Southern California, leading to the loss of homes and the evacuation of thousands. While the damage appears overwhelming, disaster relief is accessible through nonprofit organizations and state and federal agencies. Sadly, criminals often take advantage of tragedies to defraud those who are most vulnerable. Individuals who want to help those affected or those in need of aid and resources may also become targets for cybercriminals looking to exploit the crisis.

Here are some key things to watch for in the aftermath of a natural disaster.

Stay Wary of Impostors

There are those who will impersonate representatives from FEMA, the American Red Cross, or other disaster relief organizations, offering financial aid in exchange for sensitive details like Social Security numbers or bank account information. Here are some key points about FEMA inspectors to remember:

FEMA inspectors always carry official government identification, which they must show you if you ask to see it.
FEMA never charges inspection fees
Housing inspectors will never ask for a 9-digit registration number

Others will claim to be utility workers or insurance representatives who can help you or need information from you. Often, these individuals will claim immediate payment to keep your coverage or service active. Take the time to independently verify any claims by contacting the company directly using a phone number from their official website or your account documents.

Verify the Legitimacy of Charities

Be cautious if you receive requests for wildfire support via social media, text, or email. It can be hard to tell which charities are legitimate, as scammers may use tactics like manipulating Caller ID and artificial intelligence to appear credible. They often pressure you to donate immediately using untraceable methods like gift cards or wire transfers. Remember, a legitimate charity will never use pressure tactics to solicit donations.

If you're uncertain about the legitimacy of a charity, the Federal Trade Commission provides a list of free tools that can help you decide if one is real. Legitimate crowdfunding platforms like GoFundMe have compiled a list of verified fundraisers, and the company states it has a team to monitor and update the page with legitimate fundraisers.

Contractor & Inspection Scams

For those who have suffered damages from a disaster, rebuilding as soon as possible becomes a top priority. Slow down and take a beat. Be cautious of contractors who may promise immediate repairs in exchange for an upfront payment, only to take your money and run. It's also a red flag if they won't provide you with a written contract, references, or a copy of their license. Be skeptical if a contractor tells you they "know the system" or will do immediate work.

Stay Vigilant and Informed

It's important to independently verify the identity of anyone claiming to offer assistance. Here are other tips to stay vigilant:

Do not trust caller ID—it can be spoofed to appear legitimate. Scammers often use "masking" technology to disguise their contact information, making calls or texts that seem to come from a legitimate organization.
Never share sensitive information such as usernames or passwords over the telephone, email, or text. For example, River City Bank will never contact you unsolicited and request this information.
Be wary of vague programs that don't clearly explain their mission. Research your charity on give.org or charitywatch.org to make sure it's trustworthy.

Together, we can navigate these challenging times while ensuring the safety of our communities and protecting against fraud. To learn more about the latest scam, visit River City Bank's Safety and Security page.

February 25, 2025

Navigating the Digital Frontier: Cybersecurity in a Connected World

Real-world narratives of cybersecurity, international hacking, and surveillance kept over 300 guests riveted at the 2025 Business Outlook at the Sacramento Convention Center early this February.

At this year's Business Outlook, noted journalist and senior writer at WIRED, Andy Greenberg, sat down with River City Bank's COO, Pat Lewis, and CEO of Foresight IT, Eric Johnson, to discuss the dangers of hacker attacks, the dark web, and the importance of being vigilant when it comes to cybersecurity.

After Ms. Lewis presented a review of River City Bank’s record-setting year, the discussion began with a focus on Greenberg's book, Tracers in the Dark, which details the pursuit of cryptocurrency criminals. Mr. Greenberg described how law enforcement uses crypto transactions to trace and identify individuals, often uncovering the criminals behind these transactions. In reference to his book, Sandworm, Mr. Greenberg also detailed how a cyberattack can transcend national borders, crippling the fleets of the world's largest shipping companies, paralyzing global shipping, and resulting in billions of dollars in damages worldwide.

The event highlighted how cyberattacks can disrupt operations, harm reputations, and lead to financial losses. Eric Johnson wrapped up the discussion by describing how businesses can establish a layered defense to protect their data and be prepared with adequate prevention and security measures.

All guests were treated to copies of Mr. Greenberg’s books, which he graciously signed in the lobby. It was a memorable event for all!

View scenes from this year’s Business Outlook event.

January 30, 2025

River City Bank Reports 9th Consecutive Year with Record Net Income in 2024 and an Increase in the Quarterly Cash Dividend

SACRAMENTO, Calif. - River City Bank (the Bank) reported its 9th consecutive year of record net income with $73.4 million or $49.90 per diluted share for the year ended December 31, 2024; this was $13.1 million more than the $60.3 million or $40.49 per diluted share for the year ended December 31, 2023. The Bank also reported net income of $21.3 million, or $14.52 per diluted share, for the quarter ended December 31, 2024, which compares favorably to the $16.8 million, or $11.28 per diluted share, for the same period in 2023. The Bank’s earnings for the year ended December 31, 2024 represented a healthy 16.3% return on equity capital and 1.42% return on assets. The Bank’s book value per share rose to $336 as of December 31, 2024 from $287 per share as of December 31, 2023.

The improved net income versus the prior year was driven by the following factors:

Higher loan balances – Average loan outstandings in 2024 were $515 million higher than the prior year and yields on loans increased by 0.39% (including the impact of the fair value hedges), driving the increase in loan interest income.
Deposit growth – Average deposits grew by $734 million compared to the prior year, supporting growth in the Bank’s loans and liquid assets.
Increased investment securities balances and yields – Average investment securities and cash balances grew by $210 million while yields increased from 3.45% in 2023 to 4.76% in 2024.
Stable net interest margin (NIM) – Despite higher deposits costs in 2024, NIM decreased by only 0.08% to 2.66% in 2024 from 2.74% in the prior year. The stable NIM, supported by the Bank’s hedging program, combined with the significant loan growth, allowed the Bank to grow net interest income by $15.8 million in 2024.
The provision for credit losses was $7.5 million in 2024, which was $5.1 million less than the $12.6 million provision expense in 2023. The Bank did not experience any credit losses during the year and the Bank’s Allowance for Credit Losses for Loans was 2.39% of Gross Loans as of December 31, 2024.

The 2024 results and continued growth of the Bank to over $5.1 billion in total assets as of December 31, 2024, demonstrates the appreciation our customers have for the over 50 years of consistently exceptional service the Bank continues to deliver,” said Steve Fleming, president and chief executive officer. "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 focusing on loans secured by multi-family, retail, and industrial properties in the western United States, as well as growing loans and deposits with our commercial and agribusiness clients. 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 balance sheet remains liquid with $149 million in cash and $701 million in high-quality short duration investments (investment portfolio effective duration of only one year)."

“Operational efficiency remains a core competency for the Bank, as evidenced by our 27 percent efficiency ratio for the year ended December 31, 2024.” said Brian Killeen, chief financial officer of River City Bank. “The Bank’s high-quality investment securities portfolio continues to perform well with relatively small unrealized losses of less than 1.5% and there are no investment securities categorized as held-to-maturity.”

Shareholders’ equity for River City Bank for the year ended December 31, 2024, increased $67 million to $485 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 well above the regulatory definition for being Well Capitalized, with a Tier 1 Leverage Ratio of 9.1% as of December 31, 2024.

Additionally, Mr. Fleming announced that the Bank’s board of directors has approved a cash dividend of $0.40 per common share (increased from $0.37) to shareholders of record as of February 12, 2025, and payable on February 26, 2025.

January 13, 2025

River City Bank Announces the Formation of Public Sector Banking Division

The new division will be under the leadership of Rosa Hilmarsdottir Cucicea

SACRAMENTO, Calif. — River City Bank (the Bank) today announced the formation of the Public Sector Banking Division. The new division is under the leadership of Rosa Hilmarsdottir Cucicea, who since 2018 has been instrumental in establishing and growing the Bank’s Clean Energy Division. In the expanded role as Director of the Clean Energy and Public Sector Banking Division, Ms. Cucicea will spearhead the continued growth of the Clean Energy Division while leading a dedicated team focused on Public Sector Banking.

Clean energy and public sector banking share a common foundation in public finance. River City Bank’s Clean Energy Division was formed due to the successful partnership with Community Choice Aggregation (CCA) clients, paving the way for expanded clean energy opportunities. As CCAs serve as both government agencies and clean energy providers, Ms. Cucicea has gained extensive expertise in both sectors. As such, her dual expertise will be pivotal to the success of the new Public Sector Banking Division as the Bank continues to innovate and expand its services to a broader client base.

“Rosa’s decade-long tenure with the bank, proven track record, and deep understanding of public financing make her the ideal leader for this new division,” said Steve Fleming, CEO of River City Bank. “Creating the Public Sector Banking Division reflects our commitment to providing tailored financial solutions to address the unique needs of municipalities and government agencies.”

“I am honored to take on this new challenge and excited to build a team that will further enhance the Bank’s ability to support public sector initiatives. I believe that by combining our strengths in clean energy and public sector banking, we can drive meaningful impact for the communities we serve,” stated Rosa Hilmarsdottir Cucicea. “The establishment of the Public Sector Banking Division is a testament to River City Bank’s dedication to fostering sustainable growth and community development.”