President’s Message, Dec. 2016
Seasons Greetings! I hope this edition of our newsletter finds you well.
It’s amazing how the world has changed in the last 45 days or so since the election. In this period, expectations on the future have quickly been recalibrated with new optimism. We have seen interest rates begin to climb out of historically low ranges and the stock market jump as participants digest the implications of the incoming administration. With the GOP now in the White House and in control of Congress, it now appears likely we will see some form of tax cuts, the roll back of regulation and new fiscal stimulus – all of which are generally business friendly and should be “bank” friendly as well.
Higher interest rates are a reflection of increased confidence on behalf of consumers and businesses, and as long as rates don’t move too high too fast, there should be more comfort in making deferred investment in housing and businesses. This could be a particularly good environment for banks as new loan demand materializes. In addition, gradually increasing rates can begin to reverse the margin compression the banking industry has experienced and drive increased bank earnings.
Bringing things back home, your Bank has had another strong year in 2016. While the dust has not yet settled, we are on track for another record year in terms of our profitability and growth in total assets, loans and deposits.
We continue to make strides in demonstrating our passion for providing what we believe to be a superior local banking alternative to our communities – and “local” really matters to our customers. Our customers have access to decision makers and appreciate that our team members can provide prompt and personalized solutions to their unique banking needs. I frequently get compliments on the quality of our staff - and it doesn’t get any better than that! Like most other businesses, having good people makes a huge difference. Our team members care and create a great atmosphere for our customers. I think it’s a combination of all these things that sets us apart and has driven our growth.
While we now look into 2017 with reason for optimism, we also reflect on our good fortune in having the team members, customers, shareholders and our Board of Directors that have all played a key role in our success over the last 10 ½ years. As always, thank you for your continued support of River Valley Community Bank!
Happy Holidays and here’s to continued success in 2017!
John M. Jelavich, President & Chief Executive Officer
Forward Looking Statements: This document may contain comments and information that constitute forward‐looking statements. Forward‐looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Forward‐looking statements speak only as to the date they are made. The Bank does not undertake to update forward‐looking statements to reflect circumstances or events that occur after the date the forward‐looking statements are made.