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Riverbank council approves five‑year banking contract with JPMorgan Chase after community bank objections
Summary
After a public pitch from Farmers & Merchants and questions about local presence and scoring, the Riverbank City Council voted 5–0 to authorize a five‑year banking and merchant‑services contract with JPMorgan Chase, citing projected earnings from automated sweeps and lower net fees.
Riverbank — The City Council voted unanimously to authorize a five‑year contract, with two‑year extension options, for banking and merchant services with JPMorgan Chase, approving staff’s recommendation that the global bank provide a unified account structure and automated nightly sweep into money‑market instruments to increase earning potential.
Assistant City Manager Tammy Alcantor told the council the city issued a request for proposals in August 2024 and received four bids: JPMorgan Chase, Westamerica Bank, Oak Valley Community Bank and Farmers & Merchants Bank. Staff and an outside consultant evaluated technology, fees and earning potential and ranked Chase highest on combined service and earnings criteria. Alcantor said Chase’s sweep offering currently projects an overnight yield in the low‑to‑mid 4 percent range but cautioned the yield is market‑based and not guaranteed.
During discussion, council members pressed staff on whether rates and earnings were locked in and on scoring details. Alcantor and the consultant said the market rates are variable and that clarifications provided by vendors did not change the final ranking. A council member noted that the automated nightly sweep is expected to increase earnings and offset transaction fees, which factored into the recommendation.
Farmers & Merchants Bank executive Jared Steinberg urged the council to delay approval and reevaluate the proposals, saying a local community bank could be financially competitive and better serve Riverbank. Steinberg said municipal accounts placed in Farmers & Merchants’ proposals would net the city an estimated $7,000 more annually under his calculations and criticized awarding the contract to an institution without existing local decision‑making staff. He also questioned the RFP’s seven‑mile radius requirement and asked the council to consider community reinvestment activity in scoring.
JPMorgan representatives, including government banker Eric Moradian and branch manager Nikki Arno, said Chase plans to open a Riverbank branch and commit local staff and community programs. Moradian said the bank will provide a dedicated relationship manager to the city and community engagement resources countywide. Arno said the branch opening is scheduled for February 25 and described planned outreach such as school financial literacy programs.
Councilor discussion cited the consultant’s analysis and the potential operational efficiencies of a single vendor, including integrated merchant processing. Councilor motioned and seconded the award; a roll‑call vote recorded five ayes and the motion passed.
The council directed staff to finalize contract terms and authorized the city manager to execute the agreement. No further public hearings on the item were scheduled at the meeting.
