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.

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.

July 11, 2022

Meet Barry Keane

Barry Keane
Barry Keane

Barry Keane is a recent addition to River City Bank’s Clean Energy Division.  As a Business Development Officer, Barry is tasked with sourcing project finance opportunities for the bank’s expanding clean energy portfolio. Barry, an Oakland native, talks to us about family traditions, the Raiders, and all things Harry Potter.

Barry with his father, Bill, and sister, Cat.
Barry with his father, Bill, and sister, Cat.
Barry with his wife, Natalie.
Barry with his wife, Natalie.
September 22, 2020

River City Bank adds former Heritage Bank of Commerce SVP Michael McComish to its expanding San Francisco-based team

Bay Area banker to focus on commercial real estate, professional service firms and non-profit organizations as SVP, Relationship Manager

SACRAMENTO, CA – River City Bank continues to add new talent to its San Francisco-based team and announces the addition of Michael McComish as Senior Vice President, Relationship Manager. McComish will be responsible for developing new business within the San Francisco Bay Area, with a focus on commercial real estate, professional service firms, non-profit organizations and private banking. He brings more than 27 years of experience in private and commercial banking, having most recently managed accounts as Senior Vice President, Relationship Manager at Heritage Bank of Commerce.

“The San Francisco business community is dynamic, robust and constantly evolving,” said Steve Fleming, President and CEO of River City Bank. “To aid in our continued expansion throughout the Bay Area, we are pleased to welcome Michael to our team, where he will play a crucial role in solidifying new relationships with businesses and leaders in a variety of industries.”

“Bay Area business leaders are eager to find a banking partner that brings a healthy combination of ambition, agility and sheer capacity to the table,” said Michael McComish, Senior Vice President and Relationship Manager at River City Bank. “I’m excited to introduce them to River City Bank, which brings all of that and more to each relationship and opportunity.”

As SVP, Relationship Manager with Heritage Bank of Commerce, McComish managed a loan portfolio of more than $120 million and a deposit portfolio of more than $100 million. He came into his role at Heritage Bank of Commerce while aiding its acquisition of Presidio Bank, where he had spent more than a decade working with executives and all departments within the bank to develop its deposit and loan portfolios. Since joining Heritage Bank in October 2019, McComish has overseen the growth of its loan portfolio by more than $18 million. Heritage Bank’s acquisition of Presidio Bank was finalized in 2019.

McComish graduated with a Bachelor of Science degree in Social Science from California Polytechnic State University. He currently serves as President of the Society of California Pioneers, where he has also served as a board member since early 2005.

January 8, 2020

River City Bank Showcases San Francisco Office

People mingling at the River City Bank San Francisco office showcase
People mingling at the River City Bank San Francisco office showcase

River City Bank shared its new San Francisco office with business colleagues as they hosted an open house event. Catered by our friends at Graze + Gather Co., guests enjoyed a grazing table filled with local artisanal fare and took in beautiful views of the city and the Transbay Terminal. RCB’s second office in the Bay Area, the San Francisco office, provides commercial banking services and houses the Bank’s growing Clean Energy Division. The Clean Energy Division focuses on servicing Community Choice Aggregation (CCA) clients, project finance, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals.

River City Bank’s Stephen Fleming talking with Maira Strauss of Marin Clean Energy
River City Bank’s Stephen Fleming with Maira Strauss of Marin Clean Energy
View looking over the Transbay Terminal park
Views of the Transbay Terminal
Dominick Carlson, Dan Franklin, and Xu Chen of River City Bank at the San Francisco office showcase
Dominick Carlson, Dan Franklin, and Xu Chen of River City Bank
Rosa Cucicea, River City Bank’s Clean Energy Division Manager, talking with a fellow attendee of the SF office showcase
Rosa Cucicea, River City Bank’s Clean Energy Division Manager
March 26, 2019

RCB Opens Second Bay Area Office

San-Francisco-Golden-Gate-Bridge-e1556819258332

River City Bank has expanded its presence in the Bay Area with the establishment of a new office in the Financial District of San Francisco. This new location provides commercial banking and project finance services and houses the Bank’s Clean Energy Division. The group, headed by Rosa Hilmarsdotter Cucicea, Vice President & Clean Energy Division Manager, is focused on servicing Community Choice Aggregation (CCA) clients, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals. This addition marks the second Bay Area location for River City Bank, which opened a commercial banking office in Walnut Creek in 2015.

“After hitting a record number in assets and creating our new Clean Energy Division, we’re excited to open a second commercial banking office in the Bay Area,” said Steve Fleming, President and CEO of River City Bank. “The new office is a key component of our strategy to expand our focus and presence throughout California.”

The expansion is a natural progression of the bank’s shift from being primarily a Sacramento-centric consumer-oriented bank to focusing on commercial banking throughout California, and it comes after a series of significant milestones.

The Bank has taken a bold lead in the clean energy space, supporting CCA clients throughout California with their depository, cash management, and lending needs. Notable clients include Valley Clean Energy in Yolo County, Clean Power Alliance of Southern California, Marin Clean Energy, Silicon Valley Clean Energy, Monterey Bay Community Power and East Bay Community Energy. River City Bank provides CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

February 19, 2019

River City Bank opens second office in San Francisco Bay Area

Premier California business bank expands footprint, deepens ties in Bay Area

SACRAMENTO, CA — River City Bank is expanding its presence in the Bay Area with the establishment of a new office in the Financial District of San Francisco. This new location provides commercial banking and project finance services, and houses the Bank’s Clean Energy Division focused on servicing Community Choice Aggregation (CCA) clients, expanding relationships with other players in the clean energy space, and supporting California’s climate action goals. This addition marks the second Bay Area location for River City Bank, which opened a commercial banking office in Walnut Creek in 2015.

“After hitting a record number in assets and creating our new Clean Energy Division, we’re excited to open a second commercial banking office in the Bay Area,” said Steve Fleming, President and CEO of River City Bank. “The new office is a key component of our strategy to expand our focus and presence throughout California.”

The expansion is a natural progression of the bank’s shift from being primarily a Sacramento-centric consumer-oriented bank to focusing on commercial banking throughout California, and it comes after a series of significant milestones. In 2018, River City Bank grew to more than $2.2 billion in assets and launched the new Clean Energy Division under the leadership of Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager.

The Bank has taken a bold lead in the clean energy space, supporting CCA clients throughout California with their depository, cash management, and lending needs. Notable clients include Valley Clean Energy in Yolo County, Clean Power Alliance of Southern California, Marin Clean Energy, Silicon Valley Clean Energy, Monterey Bay Community Power and East Bay Community Energy. River City Bank provides CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

The new office is located at 201 Mission Street, Suite 1300, in San Francisco, and can be reached at (415) 293-4200. For more information on River City Bank, visit www.rivercitybank.com.

July 1, 2018

River City Bank Launches New Clean Energy Division

Photo-of-Solar-Panels

Taking the lead in providing banking services for clean energy companies throughout California, River City Bank (RCB) recently launched its new Clean Energy Division. RCB has taken a bold step into this fast-growing space, earning an award from the City of Davis for its beneficial environmental quality contributions and dedication to helping Community Choice Aggregation (CCA) businesses provide locally-supported clean energy. With the launch of its new Clean Energy Division, RCB will continue to service its existing CCA clients and focus on expanding relationships with other players within the clean energy sector, all the while supporting California’s climate action goals.

“Seeing the positive impact of CCAs in California since the launch of Marin Clean Energy in 2010, we were able to gain first-mover advantage in this space,” said Steve Fleming, President and CEO of River City Bank. “Part of the reason for the launch of our new Clean Energy Division is the cultural fit between River City Bank and the CCAs. Specifically, CCA entities prefer to work with community banks which are committed to supporting renewable energy, consumer choice, and local decision making.”

Based in the Bay Area, Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager, is tasked to lead the charge.  Over the past few years, Rosa has managed and grown the Bank’s clean energy portfolio.

Given its experience in the complexities and nuances of this specialized field, RCB is able to provide over a dozen CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

Click here to learn more about River City Bank’s Clean Energy services.

May 22, 2018

River City Bank announces new Clean Energy Division

Support of Clean Energy clients rooted in community-first values

SACRAMENTO, CA — May 22, 2018 — Taking the lead in providing banking services for clean energy companies throughout California, River City Bank has officially launched its new Clean Energy Division. The prominent business bank has taken a bold lead in this fast-growing space, and it has already earned an award from the City of Davis for its beneficial environmental quality contributions and dedication to helping Community Choice Aggregation (CCA) businesses provide locally-supported clean energy. With the launch of its new Clean Energy Division, River City Bank will continue to service its existing CCA clients and focus on expanding relationships with other players within the clean energy sector while supporting California’s climate action goals.

“Seeing the positive impact of CCAs in California since the launch of Marin Clean Energy in 2010, we were able to gain first-mover advantage in this space,” said Steve Fleming, President and CEO of River City Bank. “Part of the reason for the launch of our new Clean Energy Division is the cultural fit between River City Bank and the CCAs. Specifically, CCA entities prefer to work with community banks which are committed to supporting renewable energy, consumer choice and local decision making.”

The Clean Energy Division will be based in the Bay Area under the leadership of Rosa Hilmarsdottir Cucicea, Vice President & Clean Energy Division Manager, who has managed and grown the Bank’s clean energy portfolio over the past few years. “I’m honored to play a role in making California a cleaner and greener place through the services we provide to CCAs and clean energy related companies,” said Cucicea.

River City Bank currently supports a number of clean energy clients, including depository, cash management and lending needs for 12 different CCAs. Notable clients include Valley Clean Energy in Yolo County, Clean Power Alliance in Los Angeles County, Marin Clean Energy and Monterey Bay Community Power. Given its experience in the complexities and nuances of this specialized field, River City Bank is able to provide CCA clients with custom-tailored solutions spanning start-up capital, lines of credit, renewable energy project financing and custodian “lockbox” accounts.

“When we looked for someone to help our business mature rapidly, River City Bank stood out for its track record for helping companies like ours navigate the nuances of the industry,” said Ted Bardacke, Executive Director of Clean Power Alliance. “Having direct access to CEO Steve Fleming and relying on Rosa’s team’s expertise is exactly what we need to become California’s largest CCA, with approximately one million eligible accounts.”

For its beneficial environmental quality contributions in the state related to Community Choice Aggregates, and specifically with Valley Clean Energy and the City of Davis, River City Bank was recently honored with a City of Davis 2018 Environmental Recognition Award by the Natural Resources Commission in the Business category.