It’s All About Having Great Customers
In this first edition of our newsletter for 2012, I want to thank
you for your continued support and share with you our 2011
accomplishments. It’s you, our valued customers, that enabled
River City Bank to achieve our 2011 successes and create a solid
foundation for continued growth. Since keeping score is the only
way to monitor performance, below is a snapshot of River City
Bank’s achievements.
• Since 2007 we have grown our deposits by almost $260 million
or 40%. No bank, to the best of my knowledge, has ever failed
because it had too many deposits. This growth in deposits gives
us the funding necessary to grow our loan portfolio at an above
average rate.
• Another positive factor for our earnings improvement has been
our loan growth. The banking industry has struggled to find loan
growth, yet we grew our loan portfolio 9% last year.
• Lastly, our capital base is very healthy compared to the
regulatory definition of being well-capitalized and to industry
averages. We are proud that our growth was accomplished
without accepting any money via the Treasury Department’s
TARP program.
• Our net income of $10.6 million for 2011 was the 2nd highest
in the history of the Bank. As many of you will recall, we jumped
aggressively on our challenges when the economy turned sharply
south in 2008. Now we are being rewarded for having done so.
• Our return on assets last year, a common measure of a bank’s
relative profitability, was around 1.0% which puts us in the top
25% of banks in the country.
• The major driver for the improvement in the Bank’s earnings has
been the reduction in loan loss provisions. These reduced loan
loss provisions are a reflection of our improved asset quality.
Foreclosed real estate and classified loans peaked in 2009 and
have since fallen by 50%. Loan charge offs have followed a similar
pattern, dropping to $3.5MM in 2011. In a nutshell, we have tight
controls over our loan portfolio.
• We have significantly improved our operating productivity, which
is exhibited by our efficiency ratio. This ratio is simply a measure
of how many dollars of expense are needed to generate a dollar
of revenue; the lower the ratio, the better. In 2011 our efficiency
ratio actually improved notably to 56%. This efficiency allows us
to be a low cost player in our industry and very competitive with
consistently low interest rates.
All of the above has resulted in River City Bank achieving the
highest rating from the top three independent bank rating services,
BauerFinancial, Veribanc, and Institutional Risk Analytics. Additionally,
we were recently recognized by the Sacramento Business Journal for
having the top share price performance in 2011 of any publicly traded
company based in Sacramento. For those of you that deposit money
with us, this should give you confidence that we are safe.
This may seem like a bit of bragging, but you deserve to know how
your bank is performing. I think it’s important that Sacramento has
a strong community bank, and while I am a little biased, I think
that River City Bank is that bank. Thanks for all of your support and
here is to keeping score in 2012! n
River City Bank’s 2012 Regional Business Outlook
Our 2012 Regional Business Outlook, held on Wednesday, February 1st, was an enormous success. Over 300 customers and guests joined us
at the Hyatt for an enlightening and entertaining line-up of speakers including, Steve Fleming, President & CEO of River City Bank; Steven
Currall, Dean of Graduate School of Management, UCD and Eric Stille, President & CEO of Nugget Market Inc. We concluded the program
with a comedic stand-up performance by Jack Gallagher. n
Eric Stille, Dean Steven Currall,
Steve Fleming and Kelly Brothers
Carol Burger, Burger Rehabilitation
and Abe Green, RCB
Ray Tretheway, Laura Jehlik, Sacramento
Tree Foundation and Michael Benoff, Director
Dennis Coleman, Elk Grove Water
Service and Stan SooHoo, RCB
George Lenzi, RAS and
Dr. Jonathan Breslau, RAS
Todd Duke, All Weather Inc.
and Charice Huntley, RCB
Anker Christensen, RCB and
Thu Nguyen, The Lyle Company
Jason Hatanaka, T.A. Hatanaka
Farms and Patrick Imbach, RCB
Patti Fleming with Sheri Farinha, Susan Snapp and
Marlouee Wilson, Norcal Services for Deaf and
Hard of Hearing
Carrie Lane and Amy Zenti, California
Association of Highway Patrolmen
and Brian Killeen, RCB
Pat Lewis, RCB and John Webre,
Dreyfuss & Blackford Architects
Jonathon Kozycz, Jonathon K’s; Kenneth Kroeker,
Kroeker Enterprises and Yulia Yevsukova, RCB
Customers in the News
John Nunan Named President of the
Associated General Contractors of CA
John Nunan,
Unger
Construction
John Nunan, President of Unger Construction,
was recently inducted as the new leader of the
Associated General Contractors of CA (AGC
CA). AGC CA is the voice of the construction
industry. It is comprised of construction firms
and industry-related companies committed
to improving our physical environment.
As AGC CA’s President, John will lead the
charge for legislative advocacy, industrial
relations, safety/health programs, workforce
development and educational programs.
John, we know you will do a fantastic job! n
Welcome American River
Flood Control District (ARFCD)!
ARFCD has been protecting lives and property in our community
since 1927. They maintain 40 miles of levees along the American
River and portions of Steelhead, Arcade, Dry, Robla, and Magpie
creeks. Year round maintenance activities are designed to prevent
degradation of the levees’ structural stability and to keep the
surface of the levees accessible and clearly visible so problems can
be detected and flood emergency equipment can be moved in
when needed. Early detection of a problem and a quick response
are essential to saving a levee during a flood emergency. In addition to levee safety, the District considers itself a steward
of the American River Parkway and other floodways adjoining the
levees. Thank you ARFCD for all of your hard work to improve the
flood control system and make our community a safer place!
For more information about ARFCD, visit www.arfcd.org. n
ARFCD Staff: Tim Kerr, Richard Marck, Ron Sundberg, Ross
Kawamura, Sean O’Connor, Michelle Wilder, Eric Maculak and
Roger Unruh. Not pictured: David Diaz
Keep the Beat, Tanner!
One of our very own is in need
of a heart. Tanner Keller, the
twelve year old son of Nyle
Keller, Sequoia Pacific Builders,
has gone through several
heart surgeries and now is
waiting for a heart transplant.
Tanner is a vivacious young
man with so much ahead of
him. Please join River City Bank
Tanner Keller
and Sequoia Pacific Builders to
help raise money to support Tanner and his family as they cover
out-of-pocket expenses in preparation for his heart transplant at
Stanford’s Lucille Packard Children’s Hospital. If you would like to
make a donation in Tanner’s name, please make a check payable
to the Tanner Keller Heart Fund and mail to:
River City Bank
c/o Pat Lewis
2485 Natomas Park Drive, Suite 100
Sacramento, CA 95833
To learn more about Tanner and his journey, please visit
keepthebeat4tanner.wordpress.com. Keep the beat, Tanner! n
National Alliance of Mental Illness (NAMI)
NAMI California has extended
their gratitude to River City Bank
President and CEO, Steve Fleming
for running on their behalf in the
California International Marathon.
The run was 26-miles, 385-yards,
beginning at Folsom Dam and
ending at the California State
Capitol finish line. Great job Steve!
NAMI California is a grass roots
organization of families and
individuals whose lives have
been affected by serious mental
Steve Fleming, RCB
Crossing the finish line
illness. They advocate for lives
of quality and respect, without
discrimination and stigma, for all our constituents. NAMI provides
leadership in advocacy, legislation, policy development, education
and support throughout California.
Visit www.namicalifornia.org for more information. n
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Non-Profit Customer Profile:
Soil Born Farms Urban Agriculture and Education Project
Creating a Healthier Sacramento
Soil Born Farms is about: growing food, mentoring youth and future farmers, teaching
people how to cook and garden, creating urban farms and preserving wild spaces,
developing partnerships and improving access to fresh produce throughout our
community. At the core, it’s about making a difference. It means transforming a shared
vision of healthy food for all into a local reality. It all started in 2000 with Shawn Harrison and Marco Franciosa, two young and
inexperienced organic farmers who had a dream to reconnect urban dwellers with
healthy food and where it is grown. By 2002, Janet Whalen Zeller joined the team and
helped transform the farm into a non-profit 501(c)(3) organization with the help from
a small group of talented staff and apprentices, foundation grants, grassroots support,
dedicated volunteers and encouragement from community partners. Soil Born Farms
operates two urban farms on forty plus acres in Sacramento and Rancho Cordova. It
has evolved into a nationally recognized center for the promotion of urban agriculture,
sustainable food systems and healthy food education. Shawn Harrison – Founder & Co-Director
Janet Whalen Zeller – Founder & Co-Director
Marco Franciosa - Founder
& Honorary Board Member
To learn more about Soil Born Farms and its mission, please visit www.soilborn.org. n
RCB Board Member Highlight:
Steve Pleau, President Future Automotive Group
Congratulations Steve Pleau –
2011 New Car Dealer of the Year in the Sacramento Region!
The Greater Sacramento New Car Dealers Association named Steve Pleau its 2011 New Car Dealer of the Year. Steve
received the award during the association’s annual luncheon.
Steve Pleau
President, Future
Automotive Group
A River City Bank Board Member since 2001, Steve is president of Future Automotive Group and a committed
member of the Sacramento community. He is the second of three generations of Pleaus that have grown the
company from a single downtown-Sacramento Ford dealership to an award-winning ten-store chain representing
a total of 14 franchises and five manufacturers in five Northern California communities.
Steve began his career with an entry level position at his father’s dealership and worked his way up, eventually starting his
own operation in Roseville in 1981. What motivated Steve to expand the company? He credits his emphasis on learning
as a crucial component of the Future Automotive Group’s success. Over the years, they recruited, trained, and really made an investment in their
people. Steve says. “We had a good solid team, which made it easy for me to transition to be more focused on acquisitions.” n