President's Message, December 16, 2020
To our shareholders, customers, and friends,
As we entered this year, none of us imagined we would be confronted with the COVID-19 pandemic and its associated effects on all aspects of our lives this year. Since the pandemic has prevented us from interacting as we might normally, we wanted to provide an update on your Bank.
In late March, the passage of the CAREs Act included the roll-out the Paycheck Protection Program (PPP) to assist businesses with payroll continuity given pandemic uncertainty. RVCB quickly adopted the program and implemented internal processes and policies to support it. Our team worked very hard in processing the high volume of PPP loan applications submitted by our customers and non-customers in our communities. In the end, every PPP loan submitted to the Bank was approved by the U.S. Small Business Administration. Perhaps the most significant and unanticipated benefit of the PPP is the platform it provided for us to demonstrate how quickly we can adapt and support our communities in times like this. As a result of the tireless effort of our team members and success we experienced with the PPP, we won over many new customers. We are very excited to introduce the merits of community banking to new customers!
Despite the pandemic, we opened our Marysville branch in August! This branch is located at 9th and B streets on Ellis Lake, and our location there gives us great visibility. While we have long served Marysville, our new branch better positions us to provide a local banking option there and compliments our Yuba City branch in providing coverage for the broader Yuba/Sutter community. Our Marysville team is off to a strong start, and I remain very encouraged about our long term prospects in Marysville.
Updates on our other branches are as follows:
- Auburn: Our Auburn branch, which opened in late 2018, has steadily grown its deposits and loans since opening. Notably, Auburn achieved stand-alone profitability this year, and we have established solid momentum in that market!
- Grass Valley: Our Grass Valley branch was opened in 2013 and was relocated into our own newly constructed building in late 2018. We continue to experience growth in our Grass Valley branch as well as its increasing profitable contribution to the Bank’s overall results!
- Yuba City: Our Yuba City branch continues to grow and attract new customers. As measured by the FDIC’s Summary of Deposits report, our branch’s deposits of $294 million as of June 30, 2020 increased 34% from the previous year and are now second only to Wells Fargo in Yuba City.
We have grown our deposit market share over the past year and maintain strong momentum in each location.
Behind the scenes this year, we have conducted considerable due diligence in evaluating new banking systems that will help us better serve our customers and improve our internal risk management and workflow for the longer-term. The enhancements include a digital banking upgrade which will enhance the online and mobile banking experience for our customers! We have begun the conversion process and anticipate it will be completed late in the first quarter of 2021.
I am very proud of our entire team – no matter the branch or functional role. The professionalism of our team members and their commitment to our customers is the reason we continue to attract new customers and can take actions that better position the Bank for the future.
We have established an amazing franchise with RVCB, and I believe we are still in the very early innings! I hope you share the pride in in the Bank we have built and join me in celebrating some of the staff accomplishments and milestones noted in the following pages of this newsletter.
Happy holidays and we wish you a healthy and satisfying 2021!
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.