President's Message, March 2018
Loans and deposits are where the rubber meets the road for most community banks. Unlike the large national banks that tend to generate more fee income and other non-interest income, community banks typically derive more revenues and profitability when deposits are redeployed into loans.
Our Bank ended 2017 with record loans and deposits, and it should not be a surprise that we experienced record earnings as a result. For more detail on the Bank’s fourth quarter and final 2017 results, see the press release on our Investor Relations page on our website.
As we have reported over the past several years, our loan growth has been strong, and those results have driven higher levels of interest income. Loan growth is not only important for our Bank, but it’s a win for our customers and community too, as those funds are used for new projects and create local employment opportunities. We have also done a great job in attracting solid core deposits, which positions us with capacity to make new loans. Our success in driving this growth comes down to having a great team who takes pride in serving our customers and offering competitive products and banking technologies. As community bankers, we have an advantage in knowing our local markets and business, which makes it easier to craft local solutions that work for our customers.
Yuba City facility update
One good “problem” that has come along with our growth is that we have fully utilized all work space in our Yuba City branch office. To solve this, we have recently secured some additional office space nearby and have relocated some of our non-customer facing administration and back office support team members to that new space. This move will allow us to expand our lending/credit and other customer service functions in our Yuba City branch office.
Grass Valley facility update
As you may have seen on our Bank’s Facebook page or even driving by our new office site at 580 Brunswick Road, the buildout of our new Grass Valley office continues to make great progress. You will see photos and the rendering of our building on page two of this newsletter. Our project, led by the Grass Valley firm, Sierra Foothills Construction Co., has benefitted from the unseasonably dry weather we have experienced until recently, and the construction team has taken advantage of that window. The Bank will occupy approximately 3,500 square feet, and there will be an adjoining 1,450 of lease space available. Our new facility has been designed to be a comfortable place for our customers to conduct their banking activities, and we are very proud to be anchoring our presence and serving our Grass Valley area customers there! Assuming all goes as planned, we should be relocating our Grass Valley banking team into our new office in the third quarter of this year.
In addition to our facilities, we are proud to have added a number of new team members who share our passion for community banking. We also put considerable emphasis on training, so existing staff can continue to grow their careers with the Bank. To that end, we are very excited about some recent staff promotions, which you can learn about on our Facebook page, future newsletters, and certainly visiting our offices.
We believe the investments we have made in our facilities and banking team position us well for new opportunities to provide community banking services. It is very satisfying to be part of an organization that does well by our customers and employees, while also delivering solid returns for our local shareholders whose investment in our Bank reflects their belief in our mission! Thanks for your continued support for River Valley Community Bank!
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.