Sierra Vista Bank in Folsom, California, announced today that it was reporting a profit in the amount of $170,000 or 5 cents a share for the second quarter, which ended on June 30. The Bank is up $222,000 for the year, and has enjoyed five straight quarters of positive results.
For the same six-month period last year, the Bank lost $592,000. It also received a capital injection of $1.3million from an institutional investor. Bank management feels this is a good faith investment in the Bank's long-term goals.
And as a retired banker, so do I.
Many will argue that this is nothing compared to earnings numbers Chase, Citi, BoA and Wells Fargo enjoy and report. And on the surface, they would be right.
But Sierra Vista, and hundreds more community banks like it who have opened in the last 10 years, have survived by smart management, consumer and investor confidence, and old time respect for a decent industry. Banking became a foul term due to poor management, bad and possibly, illegal investments. And of course, government bailouts. All by and to the big guys.
But small banks have shown resiliency in the current market, surviving through the worst financial market disaster in American History. All because these people never forgot it was about the depositor. Yes, most of them are owned by stock holding companies, but most of these stockholders are bankers, who have invested their own money to start up these banks.
So congratulations, Sierra Vista Bank and your hundreds of siblings for a job well-done. Take your bows today for providing great customer service, terrific products and remembering why you are here.
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