Nevada County’s River Valley Community Bank, headquartered in Yuba City, reported earnings of more than $222,000, or $.13 basic earnings per share, for this year’s fiscal first quarter. The bank, which opened in June 2006, has posted 27 consecutive profitable quarters and announced last week that its board of directors has approved a special cash dividend of .35 cents per common share to shareholders of record as of April 30.
“It’s a one-time return of cash to the owners of our bank, the shareholders,” RVC Bank President and CEO John Jelavich told The Union. “Some banks may just have regular dividends and they may be every three months they pay a certain amount per dividend. That would be a recurring dividend. Ours is just a one-time special cash dividend, and this is the second one that we’ve done, and generally a special cash dividend is larger.”
Jelavich added, “We believe we’ve got a very well-run organization, we’ve generated a lot of capital in our almost eight years of existence and we believe that capital has accumulated such that we are in a position to give some of it back to our shareholders. That speaks to our strength.”
Jelavich told The Union that after this recent cash dividend is distributed, the bank will have returned more than $1 million to their shareholders as the bank continues to grow its profits.
From this time last year, the bank’s total assets are up 10 percent and close to $175 million, and deposits are up 12 percent at around $154.5 million. Noninterest bearing deposits are up by 48 percent, and gross loans for the bank had a 15 percent growth to $61.8 million.
RVC Bank’s equity has also increased 3 percent from the prior year to around $20 million and was partially offset by a decrease in the unrealized gains on investment securities.
The bank’s book value per share increased from last year’s $11.43 a share to $11.60 per share.
“We’re good at what we do, and we cultivate loyalty with our customers by developing relationships that are strong, where we can add a lot of value and custom solutions to meet the needs of our customers,” Jelavich said. “I think that’s just the essence of community banking.”
Jelavich added, “We’re in a position where our decision makers are local, and to the degree that we know our customers, we can cater solutions for them, more than some of the larger banks who follow more cookie cutter-type formulas.”
The bank opened a Grass Valley branch last summer in an attempt to gain customers in the area, separate from their Yuba City base. Jelavich said the investment will pan out in the long run.
“We are pleased with the progress our bank is making on many fronts,” Jelavich said. “We continue to execute our expansion plan into the Grass Valley market and while our investment in this new market has and will continue to result in reduced earnings in the near term, we believe this operation will be accretive over the longer term as we build our business there.”
As far as the bank’s competition, Jelavich said RVC Bank can offer the local community more services than a larger corporate bank can.
“We’re able to differentiate ourselves from other banks because it’s just a really good place for community banks, and some of the big banks are not able to offer the same level of service a well-run community bank can offer.”
For more information on RVC Bank, go to www.rivervalleycommunitybank.com
To contact Staff Writer Ivan Natividad, email firstname.lastname@example.org or call 530-477-4236.