Community Banks With Branches: River Valley
The River Valley Community Bank has estimated spending of $40,942 as marketing and advertising spend for 2018. The requested information is provided in the attached spreadsheet, column I, rows 3-8.
RIVER VALLEY COMMUNITY BANK
- Locations: The bank is headquartered at Yuba city branch. It has a full-service community branch located at GrassValley and another branch at Auburn.
- The bank's total assets for 2018 was $377 million
- The River Valley Community Bank had an estimated spend of $40,942 on marketing/advertising efforts for 2018.
- The bank is also experiencing improving efficiency ratios, as income generated at new branch locations added in 2018 is growing and helping to offset the costs of those locations.
- The Auburn office, which opened last fall, continues to maintain solid momentum and is working closer to achieving its stand-alone profitability.
Through our initial research on the River Valley Community Bank's website and annual reports, we were able to get the details of the bank's locations and total assets. We were not able to get any published details about its advertising and marketing spend despite extensive searches through trusted market reports, articles, and databases such as Crunchbase, PR Newswire, among others. This bank is a public entity and publishes its annual reports, but there were no details found on marketing/advertising in these reports. We reviewed the company's financial statements press releases but that also did not yield any relevant information on marketing/advertising.
Taking all of these findings into account, our next step was to triangulate the advertising and marketing spend for River Valley Community Bank. We were able to find information on an estimated percentage share of advertising and marketing spend of community banks, in general (2.2% of total expenses for community banks on an average has been considered as the ROAE is less than 15%). We then went through the FDIC for the total expenses and the banks' annual financial statements for the ROAE of River Valley Community Bank for the financial year 2018. This yielded the following results (calculation):
=River Valley Community Bank’s ROE (10.52%) .
= Estimated marketing spend for community banks on an average for 2017 is 2.2%.
= Total expenses, as of December 31, 2018, were $1,861,000.
= 2.2% x $1,861,000 = $40,942 estimated spend on marketing and advertising efforts for 2018.