Community Banks With Branches, Part 1
Golden Valley Bank, Cornerstone Community Bank, and Redwood Capital Bank are three community banks in Northern California — within Butte, Glenn, Shasta, Tehama, Colusa counties. Their advertising & marketing spend are $224,314, $142,098 (estimated), and $494,606, respectively. Below, is an overview of our findings.
#1: Golden Valley Bank
- Golden Valley Bank is a community bank with two locations in Chico (Butte County) and Redding (branch in Shasta County), Northern California.
- It spent $224,314 and $274,707 on advertising and marketing in 2018 and 2017, respectively. However, there is no further segmentation of these costs.
- According to the Federal Deposit Insurance Corporation (FDIC), Golden Valley Bank has total assets worth $346,776,000.
#2: Cornerstone Community Bank
- Cornerstone Community Bank has three branches in Red Bluff, Redding, and Downtown Redding, all within Tehama County, Northern California.
- In 2018, apart from its operating expenses on salaries & benefits and premises & fixed assets, other expenses, which may likely include advertising and marketing costs, amounted to $2,390,000.
- However, calculations show that it spent about $142,098 on its marketing and advertising efforts — 2.2% of its total expenses, according to analysts. There is no further segmentation of these costs.
- Cornerstone Community Bank has total assets worth $289,343,000, according to the Federal Deposit Insurance Corporation (FDIC).
#3: Redwood Capital Bank
- Redwood Capital Bank has four branches within Humboldt County, Northern California.
- In 2018, it spent $494,606 on marketing and promotions, while it spent $475,562 for the same in 2017. There is no further segmentation of these costs.
- According to the Federal Deposit Insurance Corporation (FDIC), Redwood Capital Bank has total assets worth $361,032,000.
To address this request, we found and used a community bank directory and locator curated by the Independent Community Bankers of America (ICBA) to identify all the community banks in each of the provided counties in Northern California — Butte, Glenn, Shasta, Tehama, Colusa. We reviewed each community bank to find out if they have 1-5 branches. However, this approach became challenging because we could not find many community banks with 1-5 branches within the target region. We could only identify Redwood Capital Bank, Golden Valley Bank, Premierwest Bank, and Cornerstone Community Bank. A host of other community banks, such as Tri Counties Bank, Banner Bank, Poppy Bank, and Plumas bank, had over seven branches that span across counties beyond Northern California, and/or even across states in some occasion.
We proceeded to determine the total assets and advertising & marketing costs for PremierWest Bank, Cornerstone Community Bank, Golden Valley Bank, and Redwood Capital Bank. We could determine most of these data, however, we found that Premierwest Bank doesn't exist anymore, as it was acquired by AmericanWest Bank in 2013. Also, we could not find the advertising and marketing spend of Cornerstone Community Bank, as its annual reports do not provide any breakdown of its operating expenses from other operations, which is where advertising and marketing usually fall under, as seen for Redwood Capital Bank. We also searched through its press releases and blogs for this data but we could not find the advertising and marketing cost.
To further address this, we delved into third-party media sources, industry articles, news aggregators such as Ad Week, PR Newswire and Business Wire, to find this data. While we could find reports that that highlights its financial information and annual report, none shed any insight on the advertising & marketing spend of Cornerstone Community Bank.
We also searched through company databases that provide the annual advertising and marketing spend of companies such as Winmo and Adspend Database. However, the bank is not listed in any of these databases. Hence, we triangulated a rough estimate. We found that community banks with an average return on equity (ROE) — not up to 15% — (13.51% for Cornerstone Community Bank) spend 2.2% of their total expenses on marketing. Therefore, since Cornerstone Community Bank's total expenses in 2018 was $6,459,000; it all means that it spent about $142,098 (i.e., 2.2% * $6,459,000 = $142,098) on its marketing and advertising efforts.