Employees Archives

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.”

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 26, 2024

Meet Brian Killeen

Brian Killeen is River City Bank's Chief Financial Officer. As CFO, Brian oversees its accounting, financial reporting, and treasury functions. Since his arrival at the Bank in 2007 as the Controller, he has gradually assumed additional responsibilities within the Finance Department and spearheaded several bank-wide initiatives. Brian joined us to chat about his passion for Bay Area sports teams, his new role at River City Bank, and the importance of his faith.

Hometown: I grew up in Davis, CA and still live there to this day. It has been a great place to raise our kids.

First Job: Outside of the standard yardwork and newspaper delivery jobs, my first real jobs were working at the local library and a pizza place.

Favorite Quote(s): “Some people make things happen, some people watch things happen and some people wondered what happened.”

Favorite Movie: Chariots of Fire – Some people view it as a slow movie, but it has multiple stories going on and one of the protagonists is Eric Liddell, a Christian hero of mine and missionary.

Favorite city to visit: My family and I have visited a number of great places, but I think my favorite city to visit is London. I especially like the historical places and museums to visit, but amidst a vibrant, modern city.

Favorite place in Sacramento/Bay Area/Southern California: I like to get away to Marin and enjoy hiking on Mt. Tamalpais.

First site or app you check in the morning: Wall Street Journal website.

What are you reading right now? “Six Days of War”. It’s a book about the Six Day War in Israel in 1967. Interesting to read, given the war that is currently going on in Israel/Gaza now.

Morning ritual: After a shower to wake up, I read several chapters in the Bible, spend some time praying and drink coffee. This helps me get in the right state of mind for the day.

Radio or podcasts? Generally radio, I like listening to Armstrong and Getty for news and current events. I do listen to the “Men in Blazers” podcast to get my fix for Premier League football talk.

Who is your favorite hero/heroine of fiction? I loved the Star Wars movies growing up and Luke Skywalker was my guy.

What is something people would be surprised to know about you? I’m a life-long Raiders fan. It has generally proven to be a recipe for suffering, but I haven’t been able to quit them.

Which causes/nonprofits do you support? Sacramento Life Center, they provide an important service to our community.

What did you want to be when you were a child? I wanted to play baseball for the San Francisco Giants. Unfortunately, this dream had to change by about the age of 14 or so.

What is your greatest extravagance? Probably the last house we purchased. It has a pool, which I never thought we would have or want.

What is your current state of mind? As a new CFO, I would say “invigorated” as I navigate the challenges and opportunities each day that come with the role.

What do you like best about working at River City Bank? I enjoy working for a community bank in the area that I live in and with a number of talented and dedicated people.

January 25, 2024

River City Bank Reports 8th Consecutive Year With Record Net Income in 2023 and a Quarterly Cash Dividend

SACRAMENTO, CA - River City Bank (the Bank) reported its 8th consecutive year of record net income with $60.3 million or $40.49 per diluted share for the year ended December 31, 2023; this was $12.5 million more than the $47.8 million or $32.22 per diluted share for the year ended December 31, 2022. The Bank also reported net income of $16.8 million, or $11.28 per diluted share, for the quarter ended December 31, 2023, which compares favorably to the $11.5 million, or $7.72 per diluted share, for the same period in 2022. The Bank’s earnings for the year ended December 31, 2023 represented a healthy 15.7% return on equity capital and 1.34% return on assets. The improved net income versus the prior year was driven by the following factors:

Higher loan balances – Average loan outstandings in 2023 were $477 million higher than the prior year, thereby increasing net interest income.
Increased net interest margin (NIM) – For 2023, NIM increased to 2.74% from 2.68% in the prior year. The Bank has seen a benefit in NIM as market rates have increased over these two years. Despite experiencing significantly higher deposit costs during 2023, the Bank had $19.1 million more net interest income than in 2022.
The provision for credit losses in 2023 was $12.6 million, which was $5.8 million less than the $18.4 million in 2022. 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 2023, the Bank did not experience any actual credit losses and the Bank’s Allowance for Credit Losses for Loans was a robust 2.61% as of December 31, 2023.
The Bank recognized a $3.9 million loss in 2022 on the sale of $34 million of available for sale corporate bonds which were yielding only 0.95%. At the time of the sale, the Bank was able to re-invest in U.S. Treasuries and Agency securities at a significantly higher yield.

“With the Bank’s founding in 1973, we celebrated 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 grew significantly from $3.4 billion as of December 31, 2022 to $4.3 billion as of December 31, 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 1.15 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 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 26.6 percent efficiency ratio for the year ended December 31, 2023. Though our total non-interest expense increased in 2023 over the prior year, our focus on high productivity and managing expenses continues to be evident by our continued low efficiency ratio.”

Shareholders’ equity for River City Bank on December 31, 2023 increased $65 million to $418 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 $9.3 million improvement in the Bank’s accumulated other comprehensive income position. The Bank’s capital ratios remain well above the regulatory definition for being Well Capitalized, with a Tier 1 Leverage Ratio of 8.2% as of December 31, 2023.

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 February 6, 2024, and payable on February 20, 2024.

November 7, 2023

Meet Dan Franklin

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 25, 2023

River City Bank Announces Restructure of Risk Management Department

SACRAMENTO, CA — River City Bank's President and CEO Steve Fleming recently announced the restructure of the bank's risk management department, which will be implemented Nov. 1, 2023. The reorganization will create a completely independent internal audit department, implementing best practices to ensure the highest levels of risk mitigation and compliance. River City Bank believes that a proactive approach to risk management is a priority and these initiatives reinforce the company's commitment to the financial security of its customers.

Pat McHone has been appointed to the newly created role of Chief Risk Officer (CRO). Reporting to the CRO will be the Credit, Compliance, and Information Security Departments. In addition to providing ongoing executive oversight of the three groups noted above, McHone will be responsible for Business Continuity Planning, Vendor Management, and Policy Administration.

As the Bank's Executive Vice President and Chief Credit Officer, McHone has been an integral member of River City Bank's Executive Team since 2008. With close to 40 years of experience, his banking career includes 16 years as Senior Vice President and Region Manager at Mechanics Bank and seven years at Security Pacific Bank.

Ken Imwinkelried, currently the Bank's Senior Vice President and Senior Credit Manager, will be promoted to Chief Credit Officer and will report to the Chief Risk Officer. As the new CCO, Imwinkelried is responsible for all aspects of the loan approval process, credit quality, and management of the Bank's portfolio of commercial real estate, commercial and industrial, and consumer loans. He will join the Bank's Executive Team, Asset Liability Committee, Pricing Committee, and Loan Committee.

Imwinkelried first joined River City Bank in 2010 through its Commercial Banking Associate training program. Throughout his career at the Bank, he has advanced through a broad range of credit analysis, underwriting, and management positions.

Jeremy Spencer has been named as Director of Internal Audit and Regulatory Relations (DIA). The DIA will maintain a direct reporting line to the Audit Committee with an administrative reporting to the CEO. In addition to managing all in-house and outsourced audits, Spencer is the Bank's liaison to regulatory agencies.

Spencer joined River City Bank in 2011 and is currently the Senior Vice President and Director of Risk Management. Prior to joining the Bank, he was a Senior Manager with KPMG LLP U.S., where he spent five years providing audit services, Sox404 compliance consulting, and SEC reporting services to clients in the financial services industry.

"Our primary focus has always been the safety and security of our customers' assets and information," said Steve Fleming. "By identifying, evaluating and mitigating risk, we reinforce our commitment to providing a secure and trustworthy banking environment. This Risk Management Department will provide guidance to the Bank's entire executive team and board of directors to ensure our risk management practices align with the best industry practices and regulatory guidelines."

October 19, 2023

River City Bank Announces Promotion of New Chief Financial Officer

SACRAMENTO, CA — River City Bank (the Bank) announced that Brian Killeen has been named Chief Financial Officer effective October 18, 2023.

After serving as the Bank’s Controller since 2007, Mr. Killeen was appointed Interim Chief Financial Officer on July 3, 2023. Prior to joining the Bank, Mr. Killeen spent seven years working for KPMG LLP in Sacramento, where he focused on performing audits of financial institutions. Mr. Killeen holds a B.S. in Business Administration, with concentrations in Accounting and Finance, from California State University, Sacramento and is a Certified Public Accountant (inactive). Mr. Killeen will spearhead the search for a successor Controller/Deputy CFO to join the Bank’s finance team.

“With Brian’s excellent performance over many years as our Controller and his most recent time as our Interim CFO, he is absolutely the right individual to take on this important leadership role at the Bank.” Steve Fleming, the Bank’s President and CEO. “I am confident his knowledge of the Bank’s accounting, treasury management and financial reporting requirements combined with his commitment to the Bank’s growth and success, makes him the ideal person for the CFO position.”

June 29, 2023

Meet Jeremy Spencer

Jeremy Spencer is River City Bank’s Director of Risk Management. He oversees the Bank’s Compliance, Information Security, and Internal Audit Departments. We recently sat down with Jeremy to talk about his globetrotting goals, his childhood dream of playing professional baseball, and a life filled with activities and adventures with his two sons.

Hometown: Red Bluff, CA. For those who don’t know, Red Bluff is two hours north of Sacramento. It is a small, rural town in Tehama County, about 45 minutes from Lassen National Park.

First Job: Dishwasher at Black Bear Diner

Favorite Quote(s): “Whether you think you can, or you think you can’t – you are right” — Henry Ford

Favorite Movie: Braveheart

Favorite city to visit: Chicago. What is not to love about Chicago? It is a great sports town and has world-class museums and food. Second City is amazing as well.

Favorite place in Sacramento/Bay Area/Southern California: Disneyland. Without question Star Wars is our favorite part of Disneyland. We just love the magic of the place. My favorite ride is Big Thunder Railroad.

First site or app you check in the morning: BBC News

Morning ritual: With two busy sons, every morning is like “who’s on first?”

If you have an extra hour in the day, how would you spend it? I would spend it walking.

Radio or podcasts? Radio.

Who is your favorite hero/heroine of fiction? Paul “Muad’Dib” Atreides (from Dune)

A vacation photo of Jeremy Spencer with his wife and two sons

The Spencer Family

Jeremy Spencer and his two sons on a camping trip

Jeremy Spencer and his sons

Which talent would you most like to have? The ability to sing well.

Which causes/nonprofits do you support? Boy Scouts of America, Food for Families (Raleys), Harris Center (Folsom).

What is your idea of perfect happiness? Traveling to new places, new experiences.

What did you want to be when you were a child? A baseball player. I was born and will die a San Francisco Giants fan. Will Clark was my favorite Giant. He shares the same birthday as me!

Which living person do you most admire? Rick Steves. He gets to travel for a living!

What place have you always wanted to visit but have yet to have the opportunity? I would say the UK. Luckily, we are planning a big trip to the UK in the summer of 2024.

What is your current state of mind? Busy!

What was the best piece of business advice you were given when you were starting out? Plan for the long term, live within your means, and save as much money as possible.

What do you like best about working at River City Bank? I get to work alongside so many dedicated people; people you can count on when things get difficult.

June 2, 2023

River City Bank Announces New Interim Chief Financial Officer

SACRAMENTO, CA — River City Bank (the Bank) announced today that Anker Christensen, Executive Vice President and Chief Financial Officer of the Bank, will step down effective July 3, 2023.

Brian Killeen, currently the Bank’s Senior Vice President and Controller, has been appointed Interim Chief Financial Officer, effective July 3, 2023. Mr. Killeen has been the Bank’s Controller for the past 16 years. Prior to joining the Bank, Mr. Killeen spent the first seven years of his career working for KPMG LLP. Mr. Killeen holds a B.S. in Business Administration, with concentrations in Accounting and Finance, from California State University, Sacramento and is a Certified Public Accountant (inactive). The Bank will engage a search firm as part of the process for selecting the Bank’s permanent Chief Financial Officer, and Mr. Killeen will be a candidate for the position.

Mr. Christensen stated, “It has been a tremendous privilege to work with my exceptional colleagues at River City Bank over the past 19 years. The work has been highly rewarding and I am personally very gratified to have played a key role in transforming the Bank to such a large extent. While I will miss my colleagues at the Bank, I am also looking forward to starting a new chapter in my career.”

“Anker has been an instrumental part of our transformation at River City Bank from a small retail-oriented bank to a high-performing boutique commercial bank,” said Steve Fleming, the Bank’s President and CEO. “On behalf of the entire River City Bank team, I would like to express my deep gratitude to Anker for all his valuable and significant contributions to the Bank and wish him all the best in his future endeavors. He will be missed.”

“We are fortunate to have an executive with Brian’s experience to serve as Interim CFO,” added Mr. Fleming. “He is intimately familiar with the Bank’s culture, along with all of the Bank’s accounting, treasury management, and financial reporting requirements. We will be conducting a search to fill the CFO position on a permanent basis and Brian will be a candidate for the role.”

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

October 4, 2022

River City Bank donates $10,000 to Sacramento Steps Forward

Donation supports regional systems to prevent homelessness

River City Bank presenting a donation check to Sacramento Steps Forward

SACRAMENTO, CA — River City Bank, Sacramento’s premier business bank, showed its support for ending homelessness and strengthening communities by presenting a $10,000 donation check to Sacramento Steps Forward. The donation supports implementing a new regional coordinated access system to ensure that homelessness is either preventable, brief, or one-time.

“As one of Sacramento’s longstanding community-based businesses, River City Bank is dedicated to seeing our region grow and prosper, and that includes supporting organizations that provide solutions for ending homelessness,” said Steve Fleming, President and CEO of River City Bank. “As the lead agency for Sacramento Continuum of Care, Sacramento Steps Forward is responsible for providing homeless families and individuals with needed housing and support services.”

“Thank you to River City Bank for this generous contribution and for recognizing Sacramento Steps Forward’s work on a comprehensive approach to end homelessness. Homelessness is truly a humanitarian crisis. It touches all of us – from the unimaginable hardships for our unhoused community to the impacts suffered by nearby neighborhoods, businesses, and the community,” said Lisa Bates, CEO of Sacramento Steps Forward. “We are grateful for this investment and the direct impact it will have on systemic solutions in Sacramento.”

River City Bank presented the donation check to Lisa and the SSF executive team members during its client appreciation reception, which was held on September 21, 2022.

As part of the event tradition, River City Bank recognizes and makes a charitable contribution to one of our non-profit clients. River City Bank employees had the challenging, yet rewarding, job of choosing the donation recipient from many charitable organizations with compelling missions.

About Sacramento Steps Forward

Sacramento Steps Forward is a private, non-profit 501(c)(3) organization serving the Sacramento region leading multi-sector, system-level change to compassionately end homelessness where our vision is an equitable community where everyone has a safe place to call home. Sacramento Steps Forward is also the lead agency for the Sacramento City and County Continuum of Care. For more information about Sacramento Steps Forward, visit SacramentoStepsForward.com.