Annual Report
2014
The Power of Community
Letter from
Our CEO
Our Story
“
Our passion is to help businesses grow, make
In their first week on the job, new employees are
dreams a reality and be leaders in our community
introduced to the spirit of community banking by
– and it starts with our staff. We encourage
writing a paper. They meet with each employee, ask
active involvement to connect, engage and
questions and summarize what they think GVB is
better understand community needs providing a
all about and how their fellow employees serve our
foundation to truly serve our customers.
customers. They describe our culture and explain
In 2015 we’ll see Jeremy (Commercial Relationship
Banker) as the Chair of the Board for the Boys and
Girls Club, Natasha (Marketing) as the President
of the Young Professionals Organization and
Mark (CEO) as the Chair of the Chico Chamber of
Commerce Board of Directors, to name a few.
processes while gaining insight as to why we do
business the way we do. To the right is a paragraph
from Amber Dowdy, Client Services Representative,
explaining a bit about what she learned her first
week at GVB. We think it says a lot!
Talking to employees of GVB,
they’ll tell you the most important
thing is to always give absolutely
outstanding customer service and
find a way to say YES! GVB makes it
a priority to go above and beyond
for all their customers and to
personalize the banking experience
just like it used to be in the good
‘ole days! One way GVB achieves
this is by educating, training and
empowering the people who work
here to make the decisions needed
to best serve the customer.
”
Amber Dowdy
Real. Local.
Community Banking.
That’s the vision a few local business people had
then has the power to quickly and efficiently get
We have great plans to serve you better in 2015,
in 2004. Build a real community bank based on
it done. A banker who knows your name and
including further upgrading our technology,
absolutely outstanding customer service, local
sincerely appreciates your business.
adding more attentive, knowledgeable staff and
decision making, community leadership and,
most important, local ownership with a strong
commitment to the area we call home.
We are accomplishing what we set out to do.
Our purpose is to be the Best Bank in Town. By
staying aligned with our purpose, we can and will
achieve our goals- financial and otherwise.
More and more people like you recognize the
benefit and the value of being able to come in or
There is value in being able to walk into the
President of the Bank’s office anytime (or call
becoming even more involved in our community.
Many of these initiatives are already underway.
his cell phone 24/7). There is value knowing
REAL community banking is where it’s at today,
that the Bank’s Board of Directors and Advisors
whether you’re a customer or an investor.
are strong and reputable local business people
always I appreciate your support and thank you
and active contributors to the welfare of our
for your business!
community.
There is value knowing that by
banking with a real community bank, you are
Here’s to the power of community!
truly helping others become as successful as you
are, or you dream to be.
call Golden Valley Bank and talk to a banker who
And, there is real value in being a shareholder, a
has “been there and done that.” A banker who
Mark Francis, President & CEO,
partner in our successful community bank, as our
Golden Valley Bank
has the knowledge to understand what you need,
results consistently demonstrate.
As
“
Kevin, our Relationship
Banker, not only responds
quickly & efficiently, he also
checks in on our family &
business regularly.
”
Whitchurch and Son
Cheer’s Effect
From our beautiful brick building and lively music to an entryway experience that delivers
a visual feast of striking woodwork, warming fireplace, elegant stained glass and, most
importantly, smiling faces and a cheery greeting, many times from our CEO.
Our greatest reward is when our customers feel like more than customers. When they feel
like they belong to Golden Valley Bank. When they know it’s more than Absolutely Outstanding
Customer Service – It’s a lasting partnership and friendship that goes far beyond deposits and
cashing checks. That’s the “Cheers Effect.”
Moe, Jackie and family
The Blofsky Family
Kurt, President of BCM Construction
We’ve been working with Marci at Golden Valley Bank
Two years ago we switched our banking to GVB
for many years on home purchases and refinances.
- they made the transition smooth and easier than
She’s become more to us than just a banker. Marci
we imagined. Our experience since then has been
helped both our sons, Shawn and Eric, purchase
incredible. When we call our Relationship Banking
their first homes; in 2014 both upgraded to second
team, they know who we are and instantly take care
homes with their wives Monika and Sarah. Working
of our needs. We appreciate getting down to business
with us, dodging obstacles along the way, Marci was
and not having to deal with someone new each time.
able to make both purchases happen. We know we
At BCM, we use the eDeposit and ACH product which
can call Marci and she’ll find solutions. She knows
saves time, money and makes banking ten times
our story, knows who we are and will always take
easier then before. We couldn’t be happier.
care of us. That’s peace of mind.
The Torres
Community Shelter
The Torres Community Shelter is a shining example of the power of community.
“
It was incredibly nice to be
able to contact the decision
makers directly. No more
going through the “home
office” and speaking to a
different person every time.
”
The Torres Community Shelter is a shining example
said no. Local project management consultant Steve
fresh, quality food. Now guests can enjoy a dining
of the power of community.
Gibson recommended Brad call Mark Francis, CEO
experience where families share their day, friends
of Golden Valley Bank. Brad knew Mark through
catch up and hope is realized.
Providing shelter, food and services since 1998,
the Torres Shelter has seen a steady increase
of those in need over the years rising from 400
people in 2008 to an expected 900 in 2015.
Until 2014, the Shelter functioned without a full
kitchen. Instead, they would serve 30,000 meals
a year in what’s known as a “warming kitchen”
lacking the most basic of appliances – a stove. Nor
did they have a proper dining room. 2014 was a
Left to Right: Mark Farncis, Brad Montgomery, Diann Harger, Jeremy Stone
Brad Montgomery
various community activities where they had crossed
paths. The result? GVB said yes.
When asked what part of the GVB experience
stood out, Brad says professionalism, attention
This reduced the burden to those helping with
to detail and excellent communication. “It was
the expansion ensuring they were paid in a timely
incredibly nice to be able to contact the decision
manner as grant money takes time to arrive. With
makers directly. No more going through the
the line of credit, the Torres Shelter kept payables
“home office” and speaking to a different person
current allowing construction to move forward
every time.” We’re thrilled to have been a part of
while waiting for grant funds to arrive.
such a fantastic project and look forward to their
turning point. Executive Director Brad Montgomery
The completed construction added an additional
reached out to a few local banks (including their
4,000 square feet including a full commercial
current one) to explore a line of credit to assist with
kitchen and dining area allowing community
construction of a new kitchen and dining room. All
volunteer groups to prepare meals on-site providing
continued success.
Blank Sheet
of Paper
“
At Golden Valley Bank,
you guys made us feel like
we’d been with you for 30
years at our first meeting.
When you sit down to plan a project you’re probably doing it with a pencil, a
blank sheet of paper and a lot of thinking. That’s exactly how we want to start the
discussion with your banking relationship at Golden Valley - with a blank sheet of
paper and a lot of thinking. Let’s plan the relationship the same way you planned
the project. What fits for you? What works for your business? What’s it going to
take to get it done? When we have those answers we’ll know we’ve put together a
banking relationship that will work for you.
”
Dr. Couk, D.D.S
and wife Jane
Here are a couple of stories from business owners who experienced our “blank
sheet of paper” banking.
Scott Laursen
The Printed Image
The Printed Image
Dr. Couk, D.D.S.
Scott Laursen came to us with the vision of expanding his custom apparel business. A new building
Dr. Richard Couk, D.D.S. and his wife Jane found their way to Golden Valley Bank after trying to
would improve work-flow, allow for employee growth and add curb appeal. Another bank turned down
refinance their office building through their current bank of 30 years left them feeling frustrated.
his loan request because he didn’t fit “in-the-box.” Scott’s experience with our CEO, Mark, was very
Facing fees that exceeded quotes and calls that never came as promised, the Couk’s decided to give
different. The blank sheet of paper came out and his loan was quickly approved. Construction was
GVB a try based on a recommendation from a neighbor. After speaking to our Commercial Lender,
completed in early 2015. The expansion increased his square footage, added more offices and new
Jeremy, the Couk’s happily found the answers they were looking for and things were in motion. Their
equipment for production. We are thrilled to have helped make Scott’s vision a reality and proud to be
satisfaction only grew as their loan was completed in less than 5 business days. The Couk’s had this
a part of such a local success. Scott is very happy with his experience. “There’s a real value in working
to say about their experience: “We felt our previous financial institution didn’t want us there. They
with a community bank.” says Scott. “To a corporate bank you’re an account number. At Golden Valley
were across the street, yet they never came to visit us. At Golden Valley Bank, you guys made us feel
Bank, you build a relationship. At GVB, I dealt directly with the CEO on my loan, not some decision-
like we’d been with you for 30 years at our first meeting. We felt encouraged right away. We believe
maker in the sky who will never walk through the doors of my business. Everything for my loan was
in relationships. That’s who we are and it’s fitting to be with a bank that acts the same way we do.
made under one roof at a local level. I could have just built a warehouse here but I didn’t want that for
The personal connection, the smiles when we walk in, just everything is exactly how we want our
our community, I wanted to make it better. Now this beautiful building will improve the curb appeal of
experience to be.” Our thanks to the Couk’s for deciding to pick up the phone and become part of a
Park Ave as well as Chico as a whole. ” It was our pleasure, Scott. Congratulations!
real community bank.
Community
Foundation
Technology
Julia Wilson, Senior Vice President Information Officer, is
responsible for bringing in new technology and services
to continually improve our customers experience.
Julia had a busy year and is prepared for our biggest
technology year ever in 2015.
Below highlights Julia’s efforts for each month in the
year 2014:
Doug and Debbie Guillon
January: Golden Valley Bank Credit cards now issued as “chip” cards to
August - September: Core Vendor Evaluation to select the best core
support transactions conducted by customers when traveling abroad.
vendor and technology partner.
Tracie Cvitkovich
February - April: Upgraded all bank computers to improve performance.
October: Implemented an efficient electronic filing solution replacing
physical storage and the need for physical access of documents.
The Guillon’s and the
donors made a big
difference in this woman’s
life with the help of the
Golden Valley Bank
Community Foundation.
The Golden Valley Bank Community Foundation
Golden Valley Bank Director Doug Guillon and
serves as a catalyst and partner in finding
his wife Debbie worked with the Foundation as
innovative and workable solutions to community
they spearheaded a fundraising effort for a local
needs. Tracie Cvitkovich, Executive Administrative
woman who needed help with her payments at the
June: Added Real Time payments to debit cards. Allows customers
Assistant runs our Community Foundation and
Jesus Center. Each month Tracie paid the woman’s
to send an instant payment accessible via a debit card. (ie. To a family
puts in many hours to help local organizations
costs from the generous donations of others. The
member or child in an emergency).
and associations with their community fundraising
Guillon’s made a big difference in this woman’s life
Added Electronic Loan statements and notices for timely electronic delivery
efforts. Tracie works to keep track of accounts, pay
and the Golden Valley Bank Community Foundation
of account statements
bills as needed and keep the communication on
was proud to help.
point. Tracie’s efforts have made a big difference
in our community for many people. In 2014, the
Foundation distributed over $100,000 throughout
our community.
May: Upgraded ATM with chip card enabled technology.
November: Implemented a phone solution for new debit card activation
and PIN Selection. Cardholders may select their PIN when they activate
their card, and they can also change a known or forgotten PIN whenever
they like.
December: Online banking upgrade with improved landing page,
feature functionality and more. Improved user experience, consistent view
July: Updated “forgot password” feature for Online and Business Banking
to make it easier to reset passwords while maintaining security.
throughout the product for both customer and internal operations.
Our Board in Action
Advisors
Board of Directors
Michael Baird, MD
Oncologist
Bill Bales
Sierra Nevada Brewing Company
James Boice, MD
Pathology Sciences
Donald Hubbard, Chairman
North State Radiology Medical Group (Retired)
W. Howard Isom, Vice Chairman
Matson & Isom (Retired)
Lewis Brogan
Erickson’s Veterinary Hospital
John L. Burghardt,
Marshall, Burghardt, Mieske & Harp
Dan Cargile,
Retired Banker
Matt Gallaway
Russell Gallaway and Associates
Syl Lucena, Secretary
Owner, Collier Hardware
Mark Francis
Syl Lucena
President & CEO, Golden Valley Bank
Owner, Collier Hardware
Mark has been actively involved in the Chico Chamber of Commerce for over
30 years and is the 2015 Chairman of the Board. Mark fully embraces the
Chamber’s purpose as the “Voice of Business” and looks forward to leading
their efforts of advocacy, economic development and tourism. The area of
advocacy will be a special focus as it is about improving our local economy
and directly benefits local businesses. Mark believes this is the most important
thing the Chamber does. Pictured with Katie Simmons, President/CEO of the
Chico Chamber of Commerce.
Syl Lucena is President of the Chico High School Foundation Board. Syl
along with his fellow Board members, are responsible for over $350,000
of endowed funds with proceeds dispersed through scholarships and grants
to students and staff. With these funds they assist students attending local
and national events, award scholarships to graduating students and provide
teachers funding for classroom supplies.
Mark Francis, President & CEO,
Golden Valley Bank
Norm Larson
Larson Ranch
Jeff Lobosky, MD
NorthState Neurosurgical Associates
Doug Guillon, President
Guillon Companies
R. Scott Chalmers, CEO
RSC Associates (Retired)
Frank Solinsky
Payless Building Supply
Robert Harp
Marshall & Harp Attorneys
Frank Sisco
President, Sisco Enterprises, Inc.
Jack Sterling
Madison Bear Garden/Mom’s
Scott Chalmers, CEO, RSC Associates (Retired) &
Mark Kimmelshue, GM/CEO, Associated Rice Marketing Cooperative (ARMCO)
As Co-Chairs for Enloe’s TakeFlight Campaign, Scott and Mark helped raise over $1
million for the hospital’s new, state of the art medical helicopter. Traveling alongside
the Enloe FlightCare team, they sought the support from neighboring communities in
this region-wide venture. Funding was secured and the new helicopter was unveiled in
January 2015. Scott, Mark and the Committee took up the challenge to raise an additional
$100,000 to provide the Neonatal Isolette machine in the helicopter for high risk babies.
Thousands of future Enloe Medical Center patients and their families from all over our
region will benefit from the hard work and dedication Scott and Mark exhibited during
this campaign. Pictured with the FlightCare Crew.
Ken Grossman
CEO, Sierra Nevada Brewing Company
Marilyn Everett, Partner
K-Coe Isom
Gary Katz, Katz Investments
Dick Stein
HJ Promotional Products
Brian Sweeney
Asset Management Group
Audrey Tennis
Rice Farmer
Glen Toney
Retired Aerospace Engineer
Cresia Gale, Co-Owner
Bidwell Consulting Services
Mark Kimmelshue, GM/CEO
Associated Rice Marketing Cooperative (ARMCO)
Don Wallrich
Retired Banker
Financial Highlights
2014 Marked Several Accomplishments:
• Total assets grew by $15.3 million – or more than 10%
• Loans increased $7.5 million surpassing the $100 million mark
• Total impact: Record earnings of $1.5 million
Success Stories
puts the bank in great financial shape
We are proud to be a part of this community. When we hear success stories about our
customers, their families and local businesses, it reminds us why we opened our doors.
We’d like to share a few we’ve heard over this last year.
Chico Dental Arts
Dr.’s Kyle and Oster came in and sat down with their Commercial Lender, Jeremy, who helped them with a loan to purchase their existing facility.
166
150
MILLION
$
$
128
$
MILLION
111 MILLION
$
102 MILLION
83 93 MILLION
MILLION MILLION
$
102
95
$
$
82
$
MILLION MILLION
72
$
66 MILLION MILLION
56 62 MILLION
MILLION MILLION
$
$
138
132
MILLION
110
MILLION
$
$
93
$
86 MILLION MILLION
69 77 MILLION
MILLION MILLION
2008 2009 2010 2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 2014
2008 2009 2010 2011 2012 2013 2014
$
2014 marked big changes and new ownership for
As one of the top solar installers in the North
local icon Woof & Poof. Roger Hart, wife Sabrina
Valley, AES needed to expand and GVB was
and Sara Gonzalez worked tirelessly to improve
there to help. 2014 marked the expansion of a
the seasonality of the business, unlock new
new headquarters, one of only four SunPower
distribution channels and keep all operations
Solar Design centers in the country and other
and manufacturing right here in Chico. GVB was
improvements to their property. The sun is
thrilled to provide a line of credit to assist Woof &
Woof & Poof
Poof as they celebrate 40 years of whimsy!
$
As a result of being treated like an account
Long time GVB customer Lance Blanshei wrote a
number instead of real people, the Gruber family
letter to our CEO, Mark, sharing his recent experience
came to Golden Valley Bank in hopes of a better
with Marci, one of our Relationship Specialists who
experience. They ran into obstacles obtaining
helped him and his wife Shelly with a home loan. He
a loan to purchase their existing building and
wrote, “In doing business with GVB for many years,
looked to GVB to make it happen. Their loan
we’ve built up pretty high expectations in terms of
was approved quickly. Shortly thereafter, a new
opportunity arose for them to move locations
$
$
$
$
shining brightly for this thriving company!
Alternative Energy Systems
TOTAL ASSETS
Gruber Manufacturing
$
service from our bank. Throughout this quick 3-4
The Blanshei’s
week process of working with you on this loan, you
and expand. GVB is proud to be a partner in
all somehow exceeded those high expectations.”
their continued growth.
Thank you, Lance. It was our pleasure.
LOANS
DEPOSITS
.76
.67
.53
.44
.39
.1 7
.0 1
2014
2013
2012
201 1
2010
2009
2008
EARNINGS PER SHARE
Corporate Headquarters
190 Cohasset Road, Suite 170
Chico, CA 95926
(530) 894-1000
www.GoldenValleyBank.com
Registrar and Transfer Agent
American Stock Transfer Company
6201 15th Avenue Brooklyn, NY 11219
Shareholder Services: 888-509-4619
www.amstock.com
Investor Relations
Investors seeking information about Golden
Valley Bank should contact:
Mark Francis, Chief Executive Officer (530)
894-4920 [email protected]
Tracie Cvitkovich, Executive Administrative
Assistant (530) 894-4923 tcvitkovich@
goldenvalleybank.com
Stock Listing
Golden Valley Bank common stock is listed on
the Over The Counter Markets system under the
symbol “GVYB”. Go to www.otcmarkets.com to
gain access. To inquire about purchase or sale,
please contact your broker or Tracie, above.
Independent Public Accountant
Crowe Horwath, LLP
40 Capital Mall, Suite 1200
Sacramento, CA 95814
(916) 441-1000
Annual Report
2014
MEMBER FDIC
EQUAL HOUSING
LENDER