Message from the President


President’s message, February 2016
Recapping our record year in 2015
You may have seen in our fourth quarter press release issued January 20th that our Bank set many new records in 2015. Below are some key highlights of our record year:
·         Fourth quarter 2015 net income of $508,070 – up 54.3% from 4Q 14 *
·         Full Year 2015 net income of $1,729,848 – up 55.8% from 2014 *
·         Total Assets: $237,472,669 - up 12.4 % from 2014 *
·         Total Deposits: $213,232,98 –up 12.6% from 2014 *
·         Total Gross Loans: $106,974,231 –up 30.7% from 2014 *
·         Our Deposit Market Share grew to a record 10.0% in the Yuba/Sutter market (Yuba City MSA) up from 8.8% the previous year *
·         Our Grass Valley Branch experienced its first profitable quarter in 2Q 2015 and contributed to our overall profitability thereafter.
·         During the 4Q 2015, we executed a five-for-four common stock split and additional shares were delivered to our shareholders – an action designed to potentially increase the accessibility of our stock to a broader range of investors and improve its marketability.
* Results reflect new quarterly and/or annual records for our Bank
Our Bank’s growing profitability is largely a function of loan growth, both in our Yuba/Sutter and Grass Valley markets. As noted in our earnings release, our credit performance continues to be excellent.  Grass Valley’s contributions to our overall profitability were positive for the year as we continue to expand our presence in serving that market.   
We are very proud of how our Bank is recognized in our markets in the delivery of competitive products and services, prompt local decision making, excellent customer service – and our safe and secure ratings as is evidenced by our five star “superior” ratings by Bauer Financial and A+ by
2016 Economic Environment: Increased volatility in commodity and financial markets.
As the calendar rolled into the New Year, we have seen increased volatility in commodity prices and significant declines in stock prices as is evidence by the pull back in most major market indexes. This volatility is based on increased uncertainty relating to a number of factors including:
·         Oil Prices – when, and at what level,  the slide in crude oil prices stabilize
·         Global Monetary Policy – the efficacy of fiscal stimulus abroad, particularly Europe and Asia
·         Domestic Monetary Policy – considerable uncertainty exists around the direction of domestic interest rates and whether or not the US Federal Reserve will increase rates as they have guided in 2016
·         The US Presidential Election
While increased uncertainty drives volatility in global markets and can lead to slower economic growth as businesses defer capital investment and hiring, there are positive signs as it relates to our domestic US economy such as:
·         Continued improvement in employment which will enhance consumer spending
·         Demand for housing remains strong which has a potentially large positive ripple effect on our economy
·         Consumer confidence improved in January following an increase in December
·         Savings from lower energy prices are making their way through the economy
Given the positives noted, I do not believe the country will slip back into a recession as some have suggested recently, in fact, I believe that our national GDP can be higher this year than in 2015, assuming we see some uncertainty dissipate and markets settle down over the next few months. One thing that can be said with certainty is that with the Presidential election under way, some clouds will remain – until that outcome becomes more clear. 
For our Bank…
Despite the “noise” noted above, we believe our Bank is well positioned for further growth and market penetration in 2016 and we are planning accordingly. The “brand” we have created continues to be recognized by those in our communities who expect more from their Bank. Our knowledgeable banking team members have worked hard to deliver a banking experience that separates our Bank from others, particularly the big banks - and we have seen our business grow as a result. While there are always challenges, we carry solid momentum into 2016, and I remain confident in the ability of our team to continue to deliver a superior banking experience that will be satisfying for our customers - and our shareholders alike.
As always, thank you for your continued support of our Bank!

John M. Jelavich, President & Chief Executive Officer


Forward Looking Statements: This document may contain comments and information that constitute forwardlooking statements. Forwardlooking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Forwardlooking statements speak only as to the date they are made. The Bank does not undertake to update forwardlooking statements to reflect circumstances or events that occur after the date the forwardlooking statements are made.

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(530) 755-0418 - Yuba City

(530) 798-2690 - Grass Valley