Commercial Banking Archives

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 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.

November 20, 2023

Commercial contractors need a banking partner at their side to navigate opportunity and risk

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

Two people wearing hard hats standing in front of a crane

With a still-vibrant level of activity and reasons for optimism, Northern California’s commercial contractors remain healthy and strong. Many contractors in the region enjoy a strong backlog in the near-to-medium term.

But longer term, questions remain, as they always will in this cyclical – if not sometimes volatile – industry. Faced with fluctuating economic conditions, continued rising interest rates, inflation, a tightening labor market, and unpredictable volatility in the coming years, planning for the more-distant future remains a challenge.

The regional construction industry, estimated at $9.1 billion in 2023 and expected to increase next year, is still likely to fall short of the levels it reached in 2021, according to recent projections. That makes strategic planning difficult, especially for contractors who must weigh the capital costs and minimum level of liquidity they should maintain on their balance sheet.

As an experienced banker with a diverse portfolio of contractor clients at River City Bank, I know the industry has been here before. I’ve seen up close what works, and what doesn’t in positive but uncertain times. And with the western part of the U.S. the only area in the nation to see an increase in construction backlogs this year, I’m also optimistic in the short term.

Still, there are several areas that commercial contractors should prioritize to maximize opportunities and minimize unexpected risks in the long term.

Leveraging cash flow

For the first time in decades, deposits can generate additional revenue. If you’re a commercial contractor with funds sitting in the bank, you can finally earn a meaningful return on your deposits. In fact, River City Bank has several programs that allow its clients to maximize their deposits, while ensuring that up to $150 million has full FDIC insurance. Money market accounts and certificates of deposit can deliver especially attractive interest rates these days. Even retention accounts can generate sizeable income.

Keep in mind, though, that with interest rates rising, commercial contractors should also be careful with capital expenditures. Take care to manage excess cash carefully and avoid incurring unnecessary debt in a period of economic flux. Now is the time to consider renting and/or incurring short-term leases if new equipment is needed to work through the current level of backlog.

Develop a hiring pipeline

Today’s economic environment is unusual in that it is marked by low unemployment. This is critical in the construction industry, where the unemployment rate has fallen below 4% and hiring skilled workers is a challenge.

It’s important to develop a hiring pipeline so you don’t end up overpaying for talent as you compete for new employees. You might consider an example from another industry. At River City Bank, for instance, we recruit at university job fairs and offer a voluntary “banking academy” to teach commercial banking to college students and develop the next generation of talent. We also have a robust summer internship program that often results in a job offer.

That approach can work in any sector. The Sacramento Region Builders Exchange, for example, has similar efforts to entice new people into skilled trades. Contractors would be smart to invest in youth programs and leadership training now to build for the future. One potential source of workers is the new charter high school for the trades in Sacramento, which opened this year.

Plan for succession

Nobody wants to work forever. Contractors need to plan for succession, so when they do turn over the company to new owners, the company doesn’t miss a beat or a client. Some of the best transitions I have witnessed had a succession plan in place as early as 15 years prior to the sale to the new generation of owners.

Contractors need to identify the next generation, then coach and mentor them for their respective future leadership roles. Mentorship programs help create an environment of sharing years of knowledge from the folks about to retire with the newly-hired, younger employees.

As part of this planning, companies should work with their bank early to figure out an appropriate debt structure to facilitate a company sale. Owners don’t want to walk away from something they’ve spent years building without adequate compensation, but they also need to leave behind something of value that can survive.

Your bank is your partner

Many commercial contractors don’t think of using their banker as a true strategic partner, the same way they would with their surety, CPA, and attorney. But they should. If you’re changing your corporate structure, for example, you call your lawyer. Similarly, any operational strategy you pursue will affect your finances. When that happens, you should talk to your bank.

At River City Bank, we have the experience and a portfolio of relationships large enough that we’ve seen the pitfalls and benefits of many strategic actions. Among the many things we’ve learned is that it’s important to stick to what you know. We’ve seen companies bid on larger jobs or those outside of their normal course of work only to lose money because they lacked expertise.

At our bank, we also focus on what we do best – and that is work with you to find solutions for your business. The construction industry is challenging enough. It’s important to find a partner that can help bring stability and success for years to come.

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

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

MEMBER FDIC

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

November 7, 2023

Meet Dan Franklin

Man in a dark gray jacket and white collared shirt standing in front of a building

Dan Franklin is EVP, Director of Commercial Real Estate at River City Bank. He manages the commercial real estate lending activity for the Bank and leads a team that focuses on establishing long-term relationships with commercial real estate investors across the Western U.S. Dan took time to chat with us about ‘80s rock and country music, and his one-time dream of becoming a veterinarian.

Hometown: Los Altos, CA

First Job: Cleaning fish tanks at an aquarium store.

Favorite song: Whitesnake’s “Here I Go Again." It always pumps me up for whatever I’m doing.

Favorite place to visit: Costa Rica. I’m a huge animal and nature lover and being in the natural environment of so many amazing creatures fills my soul.

Favorite place in Sacramento/Bay Area/Southern California: Avila Beach.

First site or app you check in the morning: Yahoo Finance, primarily to check interest rates. If rates are down, it’s a good day for business development!

Morning ritual: I blast music to wake up my kids, make coffee and breakfast, remind them 20 times to get dressed and brush their teeth, and then ride my bike with them in tow to their elementary school.

If you have an extra hour in the day, how would you spend it? Playing with my kids.

Radio or podcasts? Podcasts. My favorite is “The All In Podcast” which is a mashup of politics, business, and technology and full of unique insights from brilliant minds that aren’t afraid to think independently and deviate from mainstream, herd-mentality fueled narratives.

Which talent would you most like to have? Singer in an 80’s rock cover band. I can play guitar and piano, but am not naturally musically gifted, so I am only mediocre and can’t really sing.

What is something people would be surprised to know about you? I can do a backflip on a wakeboard.

Which causes/nonprofits do you support? Mostly the Rainforest Foundation and other nature-oriented causes. The natural world is being decimated in our modern world and is in desperate need of help as we’re in the midst of a mass extinction event.

What is your idea of perfect happiness? Sitting on a waterski boat at sunset during the summer, country music on the radio, a beer in my hand, and my kids on my lap, wrapped up in a towel after skiing.

What did you want to be when you were a child? A financial planner or a veterinarian. I always liked math and animals. I originally went to school at UC Davis to be a vet, but eventually switched to business.

What is your greatest fear? Death. It’s the ultimate problem in life that can’t be solved, only delayed.

What is your greatest extravagance? I’m pretty frugal and tend to prefer buying another share of River City Bank stock to indulging in a life of luxury. That said, I don’t hold back on fun vacations with the kids.

What is your current state of mind? Excited. There seem to be some looming issues within the commercial real estate and banking sectors caused by the high interest rate environment and the shock to the office sector of the work-from-home trend. River City Bank, with its extremely conservative loan portfolio and healthy financial position, is in an excellent position to really capitalize on any dislocations in the markets.

What was the best piece of business advice you were given when you were starting out? My father would always tell me, “Just do what’s right,” when I had a dilemma. We used to laugh about how ostensibly useless this generic advice was, but what he was really telling me was to take ownership of my own decisions, always behave ethically, and think independently rather than giving in to the pressure of often less-informed outside influences.

What do you consider your greatest achievement? What I’m going to do over the next 10 years.

October 18, 2023

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

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

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

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

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

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

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

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

July 19, 2023

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

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

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

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

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

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

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

June 29, 2023

Q+A with Adham Sbeih, CEO of Socotra Capital

Since 2007, Socotra Capital has funded over 2,000 loans, totaling $1 billion in private money loans across 22 states. Based in Sacramento, they are a premier private hard money lender and have built their reputation through consistent performance, reliable service, and fast delivery.

We caught up with Socotra Capital’s CEO, Adham Sbeih, to talk about how the company’s history and constant drive to improve have shaped what the company represents today.

According to the website, Socotra Capital is a private money lender specializing in hard money. Can you explain what “hard money” is?

Socotra Capital is a private money lender specializing in financing real estate investors on projects that may not be possible through traditional methods. As a premier lender, we are filling the space that many banks aren’t filling, whether it be a bridge loan, fix and flip loan, commercial refinance, construction projects, or other real estate projects.

The term “hard money loan” refers to a loan backed by a “hard” asset, such as real estate. If you’re a real estate investor or house flipper and need financing for a deal, a hard money loan might be a solid option to explore.

These types of loans aim to secure a property to renovate or develop and ultimately sell it for a profit. An investor might choose a hard money loan over a conventional loan because of the ease of access to the funds. Lending options from financial institutions often have complicated approval processes and weigh heavily on the borrower for approval. Hard money loans are asset-based and typically secured by a mortgage, so their approval process is much faster.

The company has been in business for 15 years and has become a successful regional loan provider. As a start-up, were there things you learned through the process?

I started Socotra in 2007, and John Ingoglia (my partner who passed away in July 2020) joined me in 2008 right before the Lehman Brothers collapse. Back then, I did everything:

Sourced the loans.
Found the lenders.
Drafted up the loan documents.
Collected the payments from the borrower.

In the 15 years since our inception, we’ve learned that there is always room for improvement. Problems happen when things get sloppy, so sticking with and trusting our processes is essential. We always ask ourselves: What can we be doing better? Where can we find additional opportunities? How can we improve?

What makes Socotra different than other lenders?

We have a relentless pursuit of improving the process and system. We work hard to give people opportunities to grow. We also take the time to celebrate the victories.

When it comes to real estate investment strategy, we don’t take a cookie-cutter approach. There are many opportunities to receive funding for a project. As a private lender, we can offer greater flexibility than most traditional banks. Socotra can also turn a loan quickly once all the paperwork is complete, often in a week. We can do this because our underwriting is primarily based on the current market value of the property as it sits.

Our team takes pride in providing value to our investors, good loans to our borrowers, and solid careers for our team.

What was the first deal you ever funded as a company?

The first deal was secured by an industrial building for $580,000. It took us four and a half months to raise the funds. It was a family affair, receiving investments from those closest to us. I still have the first check we ever received for $10k, a result of five months of work.

We operate four private placements and 3 REITS. Today, we have over $450 million in assets under management.

Adham Sbeih of Socotra

Last year Socotra Capital was voted one of the Best Places to Work by the Sacramento Business Journal. What are the key ingredients in hiring and retaining your team?

Socotra hired its first employee in 2008. We are now 31 people strong.

We know that for the team to win, we must also help the individual team members succeed. As a company, we work hard to ensure everyone on the team is respected. There is a relentless pursuit of improving the process and systems to give people opportunities.

We embrace the theory of aggregation of marginal gains, where everyone looks for 1% improvements. Everything we do is driven by and measured against our values. And now that things are starting to open up, we are excited about the opportunities that bring us back to the office. We enjoy the camaraderie and the engagement.

What is your favorite part of the job?

My favorite part is watching people grow and develop. I enjoy challenging our team and seeing them grow and respond. Along the way, we have hired college students as interns. Some have stayed with us after college and have become superstars. I am excited to continue to grow Socotra and provide value to our investors, good loans to our borrowers, and solid careers for our team.

Volunteerism is part of your company’s culture. What community organizations does Socotra support and why?

Since 2009, we have sponsored and organized a summer softball league for commercial realty brokers in Sacramento. The money raised during the season comes from the players who ask sponsors to pledge $20 for each strikeout, hit, or homerun. The league now has several sponsors, raising thousands of dollars each year. Socotra Capital matches the money raised by sponsors and players, and the funds are donated to Los Amigos/Sacramento Children’s Home.

Why the name Socotra? Is there a special meaning behind the name?

Socotra is named after an island off the coast of Yemen in the Arabian Sea. Many residents of mainland Yemen have sought safety from the war on Socotra Island. Socotra’s name stems from the firm’s ability to be an island of refuge for borrowers. The late John Ingoglia, the company’s founding partner, named it as such because he always said the best loans are those made in the ‘depths of uncertainty.’

Socotra’s logo is of a dragon tree, an endangered species that can only be found on the island.

River City Bank is not making a recommendation or endorsement, nor assumes any responsibility or liability for any content or services referenced in this interview.

May 25, 2023

River City Bank adds former Umpqua Regional Director Rebecca Fabisch Miller as EVP, Commercial Banking Director

SACRAMENTO, CA – River City Bank has announced Rebecca Fabisch Miller as Executive Vice President, Commercial Banking Director. In this role, Fabisch Miller will focus on providing services to the Bank’s middle-market commercial clients. She will lead the Bank’s commercial banking team in expanding and enhancing RCB’s commercial deposit and lending presence throughout California. Before joining RCB, Fabisch Miller held a senior commercial banking position with Umpqua Bank, managing a diverse portfolio of clients in the Sacramento region across multiple industries.

“With Rebecca’s proven leadership and tremendous depth of commercial banking experience, we will build on the strengths of our commercial banking team while meeting the unique needs of our clients,” said Steve Fleming, President and CEO of River City Bank. “Rebecca has the client focus, track record, industry experience, and extraordinary talent to lead RCB forward in this segment of the market.”

Fabisch Miller’s expertise includes orchestrating credit arrangements of varying sizes and complexity as direct lender or as the lead bank in syndicated deals. She has managed a diverse portfolio of clients across multiple industries, including not-for-profit organizations and agriculture. A solutions-oriented banker, Fabisch Miller has extensive knowledge of treasury management, real estate and equipment finance, global and investment banking, derivatives, debt capital markets, and insurance.

“I am excited to join the River City Bank Team,” said Fabisch Miller, Executive Vice President and Commercial Banking Director. “With its headquarters in Sacramento, River City Bank is uniquely positioned to offer customized credit facilities, access to decision-makers, and competitive pricing to middle-market businesses.”

Fabisch Miller earned her MBA from the University of California, Davis, and has an undergraduate degree in International Business and Marketing from California State University, Sacramento. She is the Treasurer for the California Forest Foundation and has also been involved with many other local charities. Fabisch Miller is a mother of two and enjoys exercising with friends; she has run sixteen marathons and even more half-marathons.

For more information about River City Bank, visit RiverCityBank.com

April 19, 2023

River City Bank Reports 2023 First Quarter Net Income of $12.9 Million

SACRAMENTO, CA —River City Bank (the Bank) reported net income of $12.9 million, or $8.64 per diluted share, for the quarter ending March 31, 2023, which compares to the $16.5 million, or $11.10 per diluted share, for the same period in 2022. The prior year quarter net income benefitted by several non-recurring revenue sources, as follows:

$7.0 million in mark-to-market gains on interest rate swaps for the quarter ending March 31, 2022 compared to none in the current As of March 31, 2023, all of the Bank’s interest rate swap contracts are being accounted for as hedges.
$6.9 million gain on sale derived from a true-up related to earn-out provisions from the sale of an investment in the prior year quarter.
$443,000 deferred loan fees earned on Paycheck Protection Program (PPP) loans for which the outstanding loan balances were forgiven by the Small Business Administration in the prior year quarter compared to virtually none in the current quarter.

Partially mitigating the above was the reduced provision for loan losses of $1.5 million for the current year quarter compared to $6.4 million in the prior year quarter.

The Bank’s earnings for the quarter ending March 31, 2023 represented a healthy 14% return on equity capital and 1.29% return on assets.

“With the Bank’s founding in 1973, we are celebrating 50 years of consistent and reliable service to our customers in 2023 and we are thankful for the goodwill that we have built with our loyal customer base,” said Steve Fleming, president and chief executive officer. “Notwithstanding the anxiety that was caused by the failure of several banks in the first quarter, our total deposits of over $3.4 billion are essentially unchanged from December 31, 2022; as such, the Bank’s liquidity remains healthy. At the same time, our asset quality remains strong with a short duration (average of 1.7 years) bond portfolio and virtually no delinquencies or non-performing loans. We believe we can continue to grow our commercial real estate loan portfolio as we focus on loans secured by multi-family 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 minimal unrealized losses included in accumulated other comprehensive loss within shareholders’ equity and there are no investment securities categorized as held-to maturity,” said Anker Christensen, chief financial officer of River City Bank. “Operational efficiency remains a core competency for the Bank, as evidenced by our 32 percent efficiency ratio for the quarter ending March 31, 2023.”

Shareholders’ equity for River City Bank on March 31, 2023 increased $13.5 million to $366.5 million, when compared to the $353 million as of December 31, 2022. The increase was driven by current year retained earnings as the Bank distributes only a small portion of its net income. The Bank’s equity continues to be minimally impacted by the $4.4 million accumulated other comprehensive loss as of March 31, 2023. The Bank’s capital ratio remains well above the regulatory definition for being Well Capitalized with a Tier 1 Leverage Ratio of 9.3% as of March 31, 2023.

December 20, 2021

Meet Nina Anderson

Nina Anderson is River City Bank’s Vice President, Credit Manager and oversees a team of commercial credit analysts. Her team is charged with analyzing an individual or a businesses’ financial information, along with other factors like the industry outlook and current economic environment, to determine the risk involved in lending money or extending credit.

Here, the UC Davis alumnae talks with us about giving it your all, finding a creative outlet, and how running keeps her centered while holding distractions at bay.

Hometown: Salinas, CA

First Job: A produce market off the side of the highway. If that doesn’t tell you I grew up in Salinas, I don’t know what does!

Favorite Quote: “To give anything less than your best is to sacrifice the gift.” – Steve Prefontaine. Steve Prefontaine was an American long-distance runner, so this is a quote that initially spoke to me while I was running competitively in high school/college, but that I still try to live my life by to this day.

Favorite Movie: A Star is Born (the new version). I love the mix of romance and tragedy, and the energy between Lady Gaga and Bradley Cooper is amazing to watch. Oh, and the soundtrack is 10/10.

Favorite city to visit: San Jose del Cabo – the beaches, food/drinks, weather, and proximity to California make it my favorite place to vacation. I’ve been going there almost every year since I was 11 years old, so I have a lot of fond memories there with family and friends.

First sites or apps you check in the morning: Email, Instagram, and the Skimm.

What are you reading right now? How Not to Die by Michael Greger, M.D. with Gene Stone. The book examines the top 15 causes of death in America and discusses the scientific studies that have shown how diet – specifically a plant-based diet – can help prevent or fight these diseases and allow you to live longer. This topic is truly fascinating to me, and I have to say, I’ve become a little health-obsessed during the pandemic.

Morning ritual: I typically try to squeeze in my run or a Pilates class. Then, coffee!

If you have an extra hour in the day, how would you spend it? Probably reading. Admittedly, I don’t make enough time for it as I’d like.

What is something people would be surprised to know about you? I love to run! I ran competitively in high school and for a short stint at UC Davis, and it has become a hobby ever since. I ran my first full marathon in 2019 (shout out to Ken and Riley at RCB for encouraging me to sign up!), and I’m currently training for my second one. People may be even more surprised to know that I don’t listen to music while I run. Without that distraction, running gives me a much-needed opportunity to think and reflect.

Nina and her Mom, Maria

What did you want to be when you were a child? An interior designer. When I was about ten years old, I put together a vision board with magazine cutouts and paint swatches in an effort to convince my mom to let me redecorate my room. Lucky for me, my mom loves interior design just as much as I do, so it didn’t take much convincing. I still enjoy the creative outlet, and I was thrilled when I had the opportunity to help select the finishes and furniture for RCB’s San Francisco office we opened in 2018.

Which living person do you most admire? My mother. She is the epitome of strength, selflessness, and love. She raised my brothers and me as a single parent most of our childhood and was always incredibly supportive of us and those around her. I hope to be the kind of mother she is one day.

What is your current state of mind? Heading into the holiday season, I am feeling extra thankful.

What do you consider the most overrated virtue? Patience. While I do think it’s necessary in some cases, I also think it leads to a lot of wasted time and opportunities.

What do you like best about working at River City Bank? I love working for a company that holds true to its values. We employ the very best, which allows us to deliver exceptional customer service and work toward ambitious goals. I can’t wait to see where we are in the next five years.