April 21, 2021

River City Bank Reports 2021 First Quarter Net Income of $15.6 Million

SACRAMENTO, CA — River City Bank (the Bank) reported net income of $15.6 million, or $10.62 per diluted share, for the quarter ending March 31, 2021, which compares favorably to the $7.3 million, or $4.96 per diluted share, for the same period in 2020.  The improved net income versus the prior year quarter was driven by:

  • $6.8 million in mark-to-market gains on interest rate swaps for the quarter ending March 31, 2021 compared to a loss of $164,000 for the prior year quarter. The Bank entered into these swap agreements to hedge the interest rate risk associated with its ongoing origination of medium-term fixed rate commercial real estate loans.
  • $3.4 million gain on sale of an investment.
  • $2.0 million deferred loan fees earned on Paycheck Protection Program (PPP) loans for which the outstanding loan balances were forgiven by the Small Business Administration.
  • Higher loan balances – Average loans outstandings were $533 million higher than the prior year, thereby increasing net interest income; $246 million of the increase was attributable to PPP loans.
  • $3.0 million provision for loan losses during the current quarter compared to the $1.0 million provision for loan losses recorded in the prior year quarter which partially offsets the benefits noted above.

“With many businesses in California continuing to struggle from the ongoing effects of the pandemic shutting down many segments of our economy, we are pleased to report that we were able to assist 292 customers obtain PPP round two loans totaling $79 million in outstandings as of March 31, 2021,” said Steve Fleming, president and chief executive officer of River City Bank.  “With vaccine distribution ramping up and California stating that it will allow indoor concerts, theater performances and other private gatherings starting on June 15th, we are expecting to see continued improvement in our local economy. Nevertheless, we continue to be concerned about the long-term impacts to the retail and office segments of commercial real estate due to rising levels of online shopping and work-from-home opportunities.”

“Operational efficiency remains a core competency for the Bank, as evidenced by our 34 percent efficiency ratio after excluding the swap MTM and investment gains noted above for the quarter ending March 31, 2021,” said Anker Christensen, chief financial officer of River City Bank. “Though our total non-interest expense increased over the prior year period, our focus on managing expenses continues to be evident by our continued low efficiency ratio.”

Shareholders’ equity for River City Bank on March 31, 2021, increased $12 million to $282 million, when compared to the $270 million as of December 31, 2020. The increase was driven by current year retained earnings, slightly offset by a $2.9 million decrease in accumulated other comprehensive income as the increase in short and medium-term interest rates resulted in unrealized losses in our investment securities portfolio. The Bank’s capital ratio remains well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 8.3% as of March 31, 2021.

March 29, 2021

Durst Organic Growers: Cultivating Trust by Putting Ag Workers First

Durst Vaccine Clinic

Right in the heart of Farm-to-Fork country, vaccination drives are taking place to take care of its essential workers. Every year, agriculture workers plant and harvest Yolo County’s prized bounties – vegetable, fruit, and nut crops – and are an integral part of what allows agriculture businesses to thrive.

Do you think more businesses, specifically within the ag community, will be inspired to open their own clinics as more vaccines become available?

How many people were vaccinated during the event?

Durst Vaccine Clinic

Are there plans for Durst Organic Growers to host more clinics at a later time?

How important was it for you to ensure that farmworkers got access to the vaccine at their workplace?

March 29, 2021

Meet Michael McComish

Head shot of Michael McComish
Head shot of Michael McComish

Michael McComish is the Senior Vice President, Relationship Manager for River City Bank’s San Francisco office.  With over 27 years of experience in private and commercial banking, he is responsible for developing new business within the San Francisco Bay Area, focusing on commercial real estate, professional service firms, nonprofit organizations, and private banking. We recently caught up with this busy father of four as he shared with us his love of road trips, his thoughts on public speaking, and how sheltering in place has been a blessing in disguise.

Michael with his four daughters.
Michael with his four daughters.
March 29, 2021

Beware of COVID-19 Vaccine Scams

" "

With the COVID vaccine rollout, scammers have found new ways to take advantage of the pandemic and the confusion around when, how, and where people can sign for and receive the vaccine. Below are common scams and tips you can use to avoid falling for a COVID vaccine scam.

March 21, 2021

Meet Riley Gardner

Head shot of Riley Gardner
Head shot of Riley Gardner

As River City Bank’s newest Commercial Banking Business Development Officer, Riley Gardner is tasked with developing new business within the greater Sacramento region and expanding the Bank’s presence into the Reno market. His focus is on providing commercial banking services to companies in all sectors, including commercial real estate, healthcare, food and agriculture, clean energy, construction, professional services firms, and nonprofit organizations.

Riley Gardner with his fiancée Morgan and their dog Quinn.
Riley with his fiancée Morgan and their dog Quinn.
Riley Gardner with his grandfather, Jon.
Riley with his grandfather, Jon.
February 2, 2021

River City Bank promotes Riley Gardner to Business Development Officer

Sacramento and Reno to serve as focus for relationship building and expansion efforts

SACRAMENTO, CA – Following a challenging yet successful year that saw record net income in 2020, River City Bank announces the promotion of Riley Gardner to the role of Commercial Banking Business Development Officer. Gardner will be responsible for developing new business within the greater Sacramento region and expanding the Bank’s presence into the Reno market. He will focus on providing commercial banking services to businesses in all sectors, including commercial real estate, healthcare, food and agriculture, clean energy, construction, professional services firms, and non-profit organizations.

“Like we’ve seen in Sacramento over the past several years, the Reno market is experiencing significant growth and is shaping up to be the next expansion market on our radar,” said Steve Fleming, President and CEO of River City Bank. “Along with his work here in Sacramento, we’re excited to make Reno a core focus of Riley’s business development efforts as he works to nurture relationships with leaders in a variety of sectors.”

“River City Bank has achieved exceptional growth over the past decade due to a focus on high quality customer service, quick and efficient decision making, and providing banking products and capabilities that meet client needs and save them money,” said Riley Gardner, Business Development Officer at River City Bank. “Working with Steve and the rest of our phenomenal team at River City Bank, I am excited to build more new relationships in the Sacramento and Reno markets, and share the River City Bank experience with more high quality local businesses.”

Gardner brings more than 12 years of experience in business development and commercial portfolio management, having most recently overseen credit analysis for commercial accounts as Senior Credit Analyst at River City Bank. He is also an active member of the Capitol Region Family Business Center where he leads the NextGen group. He has hosted numerous webinars for River City Bank and the Family Business Center focused on the Paycheck Protection Program (PPP) and its loan forgiveness process.

After growing up in Sacramento, Gardner graduated from the University of California, Los Angeles (UCLA) with a Bachelor of Arts in Global Studies with a focus on Economics, and also spent several years working in Asia and the Bay Area in business development roles prior to joining River City Bank.

January 29, 2021

River City Bank reports a 5 percent increase to the quarterly cash dividend on common shares

SACRAMENTO, CASteve Fleming, president and chief executive officer of River City Bank (the Bank), announced that the Bank’s board of directors has approved a 5 percent increase to the quarterly cash dividend from $0.30 per common share to $0.315 per common share. The increase was made in connection with the Bank’s recently reported net income of $9.9 million and $31.6 million, or $6.71 and $21.58 diluted earnings per share, for the quarter and year ending December 31, 2020, respectively. These dividends will be made to shareholders of record as of February 9, 2021, and payable on February 23, 2021.

January 28, 2021

River City Bank reports record net income and deposit growth for 2020

SACRAMENTO, CA — River City Bank (the Bank) reported record net income of $31.6 million, or $21.58 per diluted share, for the year ending December 31, 2020; this was $6.3 million more than the $25.3 million, or $17.33 per diluted share, for the year ending December 31, 2019. The improved net income versus the prior year was driven by:

  • Higher loan balances – Average loans outstandings were $554 million higher than the prior year, thereby increasing net interest income.
  • Paycheck Protection Program (PPP) loans – As of December 31, 2020 the Bank had $236 million PPP loans outstanding and recorded $2.0 million of interest income and $3.8 million of loan fee income in 2020 related to PPP loans.
  • Prepayment penalty income of $3.9 million and $2.2 million for the years ending December 31, 2020 and 2019, respectively. In both years, the Bank recorded an elevated level of prepayment penalty fee income on commercial real estate loans that paid off prior to their maturity dates.
  • Mark-to-market adjustments on interest rate swaps resulting in a gain of $659,000 for the year ending December 31, 2020 compared to zero for the prior year period. The Bank entered into these swap agreements to hedge the interest rate risk associated with its ongoing origination of medium-term fixed rate commercial real estate loans.
  • Partially offsetting the benefits noted above to net income was a $6.4 million increase in the provision for loan losses versus the prior year. The increased level of provisions for loan losses was attributed to the Bank’s loan growth and some deterioration in loan quality caused by COVID-19. Nonetheless, management is very pleased with the Bank’s asset quality as evidenced by the following as of December 31, 2020:
    • No remaining loan modifications related to COVID-19
    • 0.02% Total delinquent loans
    • A total of one non-performing loan in the amount of $25,000
    • No charge-offs for the year ending December 31, 2020

“At the risk of stating the obvious, 2020 was an unprecedented year due to the COVID-19 pandemic,” said Steve Fleming, president and chief executive officer of River City Bank. “We experienced a shutting down of many segments of the economy in the first half of the year, with many businesses suffering massive interruptions in their operations. Though the economy improved during the second half of the year, until the vaccine is widely distributed amongst the population and determined to be effective, we believe that the California economy will remain weak.”

“I am very proud of the performance of the Bank in 2020, particularly given the very challenging circumstances,” said Fleming. “In early March our office staff had to adjust to working from home on a full-time basis. Within a month, many of them were also working long hours to process a large volume of Paycheck Protection Program loans for our existing customers and even some new customers. At the same time, our branch staff were on the front line, as they provided an essential service to our customers.  Though almost all of our branches remain open to provide services to our customers, given the health risks associated with COVID-19, we are continuing to protect our staff through minimizing the number of customers that can enter a branch at one time and are following California’s guidelines for wearing masks and social distancing.”

“Notwithstanding the challenges noted above, we experienced outstanding deposit growth of $866 million or 40% for the year ending December 31, 2020,” said Steve Fleming. “We are very pleased with the trust placed in us by our deposit customers, which has provided us with the liquidity necessary to continue our robust lending (25% growth in 2020) into the communities we serve. That said, we noticed a significant slowdown in loan demand since the onset of the pandemic and, thus, expect slow loan growth for most of 2021.”

“Operational efficiency remains a core competency for the Bank, as evidenced by our 33 percent efficiency ratio for the year ending December 31, 2020” said Anker Christensen, chief financial officer of River City Bank. “Though our total non-interest expense increased over the prior year period, our focus on managing expenses continues to be evident by our continued low efficiency ratio.”

Shareholders’ equity for River City Bank on December 31, 2020 increased $33 million to $269 million, when compared to the $237 million as of December 31, 2019. The increase was driven by current year retained earnings and a $1.6 million increase in accumulated other comprehensive income as the decline in short and medium-term interest rates resulted in increased unrealized gains in our Investment securities portfolio. The Bank’s capital ratio remains well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 8.1% as of December 31, 2020.

December 23, 2020

Yolo Crisis Nursery Receives Funding from 2020 AHEAD Program Grant

Toddler playing with LEGO blocks

The Yolo Crisis Nursery has received a 2020 AHEAD Program grant. The generous $37,500 award is part of the Federal Home Loan Bank of San Francisco’s (FHLBank San Francisco) $1.9 million Covid-19 relief initiative. This year, the FHLBank reviewed 362 applications before selecting 97 AHEAD grant winners. The grants were delivered through participating Bank members, including 20 that submitted winning applications for the first time. River City Bank was proud to sponsor the Yolo Crisis Nursery for this award.

As part of its AHEAD Program, FHLBank San Francisco awarded grants to 52 pandemic relief projects providing food, clothing, rental assistance, homeless services, and other support to the communities they serve. FHLBank awarded an additional $1.6 million in grants to 45 projects to boost economic development activity and promote financial stability in communities throughout Arizona, California, and Nevada.

Since 2001, the Yolo Crisis Nursery has continuously provided early intervention services in a safe environment to nurture healthy and resilient children, strengthen parents, and preserve families. It offers voluntary and free childcare for ages birth through five years old. The Crisis Nursery will use the AHEAD grant to hire additional staff to support the Safe Stays Program and provide supportive services to families in need. The program provides a variety of services, including referrals to community resources that can assist with mental health counseling, domestic violence intervention, medical care, parenting classes, and job training and placement.

As an essential service, the Yolo Crisis Nursery has remained open during California’s stay-at-home orders, and its team has seen more families than ever. The group continues to work tirelessly to help lessen the burdens created by the pandemic by providing safe and temporary care for children and their families.

To learn more about the Yolo Crisis Nursery and its services, visit www.yolocrisisnursery.org.

December 23, 2020

Freezing Your Credit

Close up of credit cards frozen in a block of ice

What is a credit freeze?

Also known as a security freeze, a credit freeze is a tool that lets you restrict access to your credit report, making it more difficult for identity thieves to open new accounts in your name. Most creditors need to see your credit report before they approve a new account, if they can’t review your report, they may not extend the credit. A credit freeze gives you more control over the release of your financial information.

Does a credit freeze affect my credit score?

No. A credit freeze does not affect your credit score. A credit freeze also does not prevent the following:

  • Prevent you from getting a free annual credit report
  • Keep you from opening a new account. To open a new account, you’ll need to lift the freeze temporarily. You can lift the freeze or thaw credit anytime you need to access your credit.
  • Prevent a criminal from making charges to your existing accounts. You still need to monitor all bank, credit card, and insurance statements for fraudulent transactions. We recommend that you monitor your accounts daily.

Is there a cost to freeze/unfreeze my credit?

No.

How do I place a freeze on my credit reports?

You need to contact each of the nationwide credit bureaus. You will need to supply your name, address, date of birth, Social Security number, and other personal information. After receiving the freeze request, each credit bureau will provide you with a unique PIN (personal identification number) or password. Keep the PIN or password in a safe place. You will need it if you choose to lift the freeze.

How do I lift a freeze?

A freeze remains in place until you ask the credit bureau to temporarily lift it or remove it altogether. Contact the credit bureau to temporarily lift or remove the freeze.

If you opt for a temporary lift because you are applying for credit or a job, and you can find out which credit bureau the business will contact for your file, you can save some time by lifting the freeze only at that particular credit bureau. Otherwise, you need to make the request with all three credit bureaus.

Should you have questions about freezing credit, visit a credit bureau website or the Federal Trade Commission – www.consumer.ftc.gov/topics/identity-theft. The Federal Trade Commission is a valuable resource to learn more about protecting your personal and financial information from identity thieves and cyber criminals.

For additional information, contact one of our Customer Service Representative at (916) 567-2899 or (800) 564-7144 or via email at [email protected].