Community Banks With Branches, Part 1

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Community Banks With Branches, Part 1

The additional community bank with 1-5 branches in Northern California is Five Star Bank. The estimated advertising and marketing spending of Five Star Bank is $259,480. More details are presented below.

Five Star Bank

  • Five Star Bank describes itself as the best community bank for business owners, entrepreneurs, and community leaders.
  • Five Star Bank has two branches in Northern California located in Chico and Redding.
  • The bank's assets total $1.33 billion.
  • The total expenses of Five Star Bank, as of June 2019, total $4.99 million (year-to-date).
  • Five Star Bank’s return on equity (ROE) is 26.64%.
  • Community banks with more than 15% ROE spend an estimated 5.2% on marketing and advertising.

Research Strategy:

To identify additional community banks in Northern California with 1-5 branches, we used a community bank directory, trusted articles and reports (e.g., The Business Journals, Yelp, Independent Community Bankers of America, LinkedIn, GlobeNewswire, etc.). We focused within the counties of Northern California like Butte, Glenn, Shasta, Tehama, and Colusa and identified Five Star Bank. However, there were no published details about its advertising and marketing spend despite extensive searches through trusted market reports, articles, and databases such as Crunchbase, PRNewswire, etc. The bank is also a private entity with no obligation to publicly publish its annual reports or financial dealings.

Taking all of this into account, the research team opted to triangulate the advertising and marketing spending for Five Star Bank. We were able to find information on an estimated percentage share of advertising and marketing spending of community banks, in general (5.2% for banks with more than a 15% ROE). We then searched through the FDIC and iBanknet for the ROE and total expenses of Five Star Bank. This yielded the following results (calculation):

=Five Star Bank’s ROE (26.64%)
=total expenses, as of June 2019, were $4,990,000.
=5.2% * $4,990,000 = $259,480‬ is spent on its marketing and advertising efforts.
Sources
Sources