Corporate Culture at RiverHills Bank

Prepared for

Lara DavisBusiness Communication 271

Prepared by

James, DelpyTaylor, JonesChase, Hall

Section # 11Group # 5

October 15, 2012

Table of Contents

Executive Summary ………………………………………………………………………………………………………………….iii

Introduction

Research

Purpose of Study

Corporate Culture and History of RiverHills Bank

Definitions

Organizational Structure

Mission

Vision (Goals)

Values

Communication Procedures

Hierarchy and Personnel

Personnel Attitudes and Behaviors Shared by Groups

Tasks by Various Personnel Including Internal and External Communication

Organizational Culture

Rites and Rituals

Symbols within the Organization

Norms

Assumptions Shared by the Employees of the Organization

History

Traditions

Heroes/Legends/Myths

Describe Your Organization’s Culture

ii

Figures

1. Chain of Command Table

2. RiverHills Bank Real Estate

3. Bank of Port Gibson Share of Stock

iii

Executive Summary

RiverHills Bank, a historic community bank founded in Port Gibson, Mississippi, has been

a part of the South Mississippi community for 122 years now. Founded in Port Gibson, RiverHills

Bank now has three locations, and is preparing to open their fourth location later this year. A

small town bank owned and run by a family for four-generations and counting, RiverHills Bank

is most certainly on this rise. This report is a study of the corporate culture at RiverHills Bank.

Our group conducted research using: (1) Interviews with current RiverHills Bank CEO

and Chairman of the Board Robert Gage IV, (2) the use of Lynn Lofton’s scholarly journal about

RiverHills Bank, (3) the use of RiverHills Bank’s company website, and (4) the use of the internet

to find relevant information pertaining to corporate culture at RiverHills Bank. We separated

our report into two main topics: The first of which is (1) Organizational Structure which is made

to examine the visible aspects of the corporate culture at RiverHills Bank and will include

RiverHills Bank’s (a) mission, (b) vision and goals, (c) values, (d) communication procedures, (e)

hierarchy and personnel, (f) personnel attitudes and behaviors shared by groups, and (g) tasks

by various personnel including internal and external communication. The second main topic is

(2) Organizational Culture which is designed to discover the invisible aspects of the corporate

culture at RiverHills Bank and will entail RiverHills Bank’s (a) rites and rituals, (b) symbols within

the organization, (c) norms, (d) assumptions shared by the employees of the organization, (e)

history, (f) traditions, (g) heroes, legends, and myths, and (h) the description of RiverHills Bank’s

iv

corporate culture. This report concludes that the corporate culture at RiverHills Bank is that of

which employees find to be excellent.

Many factors play into making the corporate culture at RiverHills Bank so wonderful. It

starts at the top with the banks upper management. They provide a good workplace

atmosphere where the employees are not worked to death. A series of breaks lets the

employees recover and not become exhausted. The bank also celebrates big moments in their

employee’s life with parties. The bank makes the holiday seasons a special time at the office

too. This corporate culture is a key to success for RiverHills Bank and makes it a place many

people would be glad to work at. As far as the corporate culture in concerned, all four of our

group members would love to work at a place like RiverHills Bank. However, due to our groups

varying majors and career desires, only Robert Gage feels aspirations to apply for a job at

RiverHills Bank.

x

Corporate Culture at RiverHills Bank

Introduction

RiverHills Bank is a family owned community bank located in Port Gibson and Vicksburg,

Mississippi. The Bank has many historical characteristics and a reputation of being honest and

hard working. It was founded in 1890 and originally named Port Gibson bank and has now

become a highly successful multi-branch bank. The corporate culture in banking is very

important because it ties employees to the customers and helps everything run smoothly.

Corporate culture can be described as a company’s system of values, ethical beliefs, attitude

towards one another, and the way in which they operate. Every company has their own unique

and specified corporate culture, with both visible and invisible aspects. Our team has done

extensive research on the company and the corporate culture that lies within.

Research

We held an interview with the CEO and Chairman of the Board Robert D. Gage IV; he

provided a vivid walkthrough of the corporate culture at the bank. Also we used the bank’s

website and newspaper articles about RiverHills Bank. The following report will take you inside

the corporate culture of the bank and how everyone works together as one big banking family.

Robert Gage has worked as a teller for the bank in the past and can also provide information on

the culture of the company.

1

Purpose of study

The purpose of this report is to research the corporate communicational culture within

RiverHills Bank. Examining how the officers of the bank communicate their demands to

employees, communicate with one another, and how the bank operates on a daily basis.

Corporate Culture and History of RiverHills Bank

Definitions

Corporate culture is a term used to describe a company’s beliefs, values, morals, ethics,

terms of communications and the standards that rule over the company in which gives a

company their identity. Corporate culture is basically describing how different departments of

the company work together and the rules that the company wants their employees to obey

(Tatum, 2012).

Organizational Structure

Mission

RiverHills Bank provides financial services to many people in the nearby community

while offering the best customer service in town since 1890. RiverHills Bank offers a unique

alternative to big commercial banks, by employing local people who care for the customer.

RiverHills Bank’s main missions as a company are:

Provide excellent financial service to all customers, commercial and consumer,

with the best customer service possible.

Keeping customers protected and informed of their financial assets

Treating the customer with the upmost respect

Providing the best customer service possible

Building a personal long lasting relationship with the customer

*All the bulleted information above is described by R. Gage IV (personal

communication, October 10, 2012)

Vision (Goals)

As said by Gage IV, “Our vision is to grow our company by expanding our services to a

larger percent of the population and to increase the wealth of our shareholders.” RiverHills

Bank offers more flexible services to suit the customer’s needs, which can’t be achieved by the

larger one-size-fits-all style of larger commercial banks. RiverHills Bank sees banking as

developing a personal relationship between the employee and customer, providing the

fundamental element of bonded trust between the two (R. Gage IV, personal communication,

October 10, 2012).

Values

RiverHills Bank is a bank after all, so their values are very financially based. As Gage IV

said “we are first and foremost a financial institution, therefore we require the company and all

employees to adhere to the highest ethical standards. There is nothing that we place a higher

value on than financial integrity, because without it, we cannot do business” (personal

communication, October 10, 2012). RiverHills Bank also values customer service highly, and

demands that their employees are sincere and helpful when dealing with clients (R. Gage IV,

personal communication, October 10, 2012).

Communication Procedures

There are many different forms of communication that goes on in a bank. There is the

communication between employees and communication directed to the consumer and

potential customers. Each officer of the bank has a cell phone paid for by the bank to use for

business and personal communication. Communication between employees at the bank

includes:

Phone calls

Direct employee communication

Emails

Memos

Texting

Bank meetings

When the bank wants to relay a message to the general public or to customers they use

a different strategy that includes:

Online banking

Advertisements (radio, TV, and billboards)

Mailings

Bank statements

Customer satisfaction surveys

Phone calls

Email

*All bulleted information above is described by R. Gage IV (personal communication, October

10, 2012).

Hierarchy and Personnel

Every company has a hierarchy or chain of command that goes from top, being the most

powerful, to the bottom, which have less power. At the top is the Board of Directors, which

consists usually of the CEO of the company and large investors in the company. Their job is to

set policies, goals, and procedures for the bank. The Board of Directors main focus is deciding

what is best for the well being of the bank and its shareholders. Next is the Chief Executive

Officer, commonly known as the CEO. The CEO is responsible for daily affairs and is in direct

control of the company and enforces the polices set by the Board of Directors. The CEO directs

and implements assignments to all departments of the bank. The CEO gives each officer a

specific area of responsibility and duties they must fulfill and then report back to the CEO, who

reports to the Board of Directors (R. Gage IV, personal communication, October 10, 2012).

Under the CEO is the President of the bank. The President assists in everyday control of

the bank following orders set by the CEO and Board of Directors. The President reports back to

CEO for completion of tasks and briefings of new ones. Under the President are five Senior Vice

Presidents who are in control of three departments of the bank. The Senior Vice President of

Operations controls data processing and daily operations of the bank. The Senior Vice President

of Deposit Procurement over sees the deposit gathering of the bank. The Senior Vice President

of Loans manages the lending of loan the bank gives out (R. Gage IV, personal communication,

October 10, 2012).

Under the Senior Vice Presidents is the Chief Financial Officer, commonly known as the

CFO. The CFO holds many responsibilities including: In charge of all finances of the business,

provides current financial statements, accounts for all liquid assets of the bank, conducts

internal cash audits and performs all of the income tax accounting for the bank. The CFO

reports directly to the CEO. The Senior Vice Presidents supervise four Vice Presidents who are

below them in the chain of command. The Vice presidents supervises two Assistant Vice

President under them. The Assistant Vice Presidents report to Vice Presidents who report to

Senior Vice Presidents (R. Gage, Personal Communication, October 10, 2012)

Figure 1

Board of Directors

Set policies, goals, and procedures

Senior VP of Operations

In charge of data procession and

operations

Vice Pres.

Supervises Assisant VP

Assisant VP

takes commands from VP

Senior VP of Deposit Gathering

Handles bank's Deposits

Vice Pres .

Supervises Assisant VP

Assisant VP

Takes commands from VP

Senior VP of Loans

In charge of bank's loan operations

Vice Pres.

Supervises Assisant VP

Assisant VP

Takes Commands From VP

CEOOverall person in direct

control

President

assist in everyday control

Cheif Financal Officer

Controls finances of company

Personnel Attitudes and Behaviors Shared by Groups

For a bank to remain successful all associated must work together as a team, at

RiverHills Bank every employee is considered a party of the banking family and it is vital that a

strong relationship between management and employees exists. Mr. Gage says, “Employees

are treated as if they are customers and in return it is expected that employees treat customers

with respect and understanding as well. It is required that employees show up to work with a

positive attitude and behave in a professional manner. All the expectations required of each

employee are outlined in a manual that is updated year-after-year” (personal communication,

October 10, 2012).

Tasks by Various Personnel: Internal and External Communication

Communication is key to ensure the company continuously runs smoothly, considering

RiverHills is a banking family most communication is very personal be it face-to-face

communication, phone conversations, or text messaging. E-Mail is also an effective way to

communicate, especially with workers at a separate branch location (R. Gage IV, personal

communication, October 10, 2012). Communication is crucial and a failure to communicate

could be detrimental to the success of the bank.

It is also important to maintain a line of communication with your customers. Banking is

being made easier with advancements in technology allowing customers to securely access

their bank accounts online. Riverhillsbank.com allows customers to order debit cards and

checks online, as well as advertising bank owned properties that are up for sale. However with

the introduction of online banking big banks come across as “impersonal” and “profit-driven”,

communication becomes critical for community banks because many customers stay loyal to

smaller banks due to the friendliness felt upon entering the door (Pratt, 2011).

Internal Communication. Many different jobs must be completed internally in order for

a bank to thrive, first and foremost The CEO oversees the day-to-day operation of the bank with

the assistance of The President; The CEO calls the shots then reports back to The Board of

Directors. Senior Vice Presidents each manage a separate department in the bank, deposits,

loans, and lastly operations and data input. Deposits and withdrawals are handled by a bank

teller who deals with client service, while loans are handled by a loan officer because loans

must be approved before anyone sees any money (R. Gage IV, personal communication,

October 10, 2012). Most of these exchanges would take place in person, some minor details

regarding a loan might take place over the phone or web, but a majority of the deal will be

handled in an office, restaurant, or sometimes a golf course.

External Communication . The CEO operates externally too managing other locations

assuming the bank has multiple branches, RiverHills Banks has branches in Port Gibson and two

in Vicksburg, Mississippi. The Board of Directors operates externally making the executive

decisions required to operate, the board members work to make sure their money is safe and

make the decision if there is ever an opportunity to buy or sell (R. Gage, IV personal

communication, October 10, 2012). The CEO would communicate with the other branches by

use of E-Mails or phone calls, and then would redirect this information to the investors by a

presentation or report at a Board Meeting.

Structure is vital for a company to be successful, and you can see it visibly in their day to

day operations. What some people miss about corporate culture however are the things you

cannot see, called invisible aspects.

Figure 2 (RiverHills Bank, 2012)

Organizational Culture

Rites & Rituals

10 days paid sick leave and 3 weeks paid vacation

All standard national holidays off, including the day before or the day after on flex

holidays like Thanksgiving

401k retirement plan

ESOP employee stock ownership plan

Cash bonus program for employees who reach certain goals, up to 15% of total income

Employees receive various promotions for signing up new customers, including a cash

bonus. Every year rather than throwing a Christmas party all employees receive a Wal-Mart gift

card Christmas present. Each employee is also offered a company medical insurance plan in

which the bank covers 90% of the bill and the employee pays for the remaining 10%. Likewise,

60% of direct family member’s medical insurance bills are covered by RiverHills (R. Gage IV,

personal communication, October 10, 2012).

Symbols within the Organization

RiverHills Bank is symbolized most notably by the bank’s first branch in Port Gibson

remaining a symbol in the community since its construction in 1832. Also serving as a symbol of

the bank is the oak tree planted by Judge R.D. Gage outside the main branch (R. Gage IV,

personal communication, October 10, 2012). Both the actual building and tree symbolize the

bank’s strength as it survived The Civil War as well as The Great Depression (Lofton, 2005).

Norms

Every company has their normal routine of daily operations that their employees

become accustomed to, and RiverHills Bank is no different. The bank has multiple breaks for

their employees and different procedures that they follow.

Daily breaks

Two 15 minute breaks in the morning

Two 15 minute breaks in the afternoon

Lunch

1 hour lunch break for each employee

Drive-through tellers go to lunch at 12 p.m. and return to work at 1 p.m.

The inside employees go to lunch at 1 p.m. and return to work at 2 p.m.

The drive-through is closed from 12 p.m. to 1 p.m.

The inside is closed from 1 p.m. to 2 p.m.

Every Friday at the Port Gibson branch the bank provides lunch for its

employees

Dress code

Business Casual

Men wear a collared shirt with slacks and loafers

Women can wear a dress or a collared shirt with business slacks

No code on shoes for women but they must be in good taste

Jeans are allowed on Fridays

End of the day

No employee leaves their department until they balance out

Each department leaves on their own

*All of the bulleted information above described by R. Gage IV (personal communication,

October 10, 2012)

Through a structured break system, the bank ensures that their employees are at a high

performing energy level and have an optimal mindset. The banks dress code shows

professionalism while also not demanding anything above and beyond from its employees.

Employees leave from work with their department after they balance out the transactions from

that day (R. Gage IV, personal communication, October 10, 2012).

Assumptions Shared by the Employees of the Organization

An employee manual is made every year by the board that describes everything the

employees of the bank needs to know. Each year the manual is approximately 70 pages

covering all topics and stating what the bank expects from its employees.

The manual includes:

Illness

Disability

Supervision

Suspension

Vacation

Breaks

Dress Code

Appropriate Office Behavior

Bringing Your Child to Work

The manual lists out the expectations for the employees and serves as an all-in-one

manifest which sketches the image of what the corporate culture at RiverHills Bank should be.

History

River Hills Bank is a family owned financial institution located in Port Gibson and

Vicksburg, Mississippi. Founded in 1840, originally called the Port Gibson Bank began as a

response to local demands. During the Civil War the bank printed and circulated Confederate

currency and served as a field hospital for the Confederates. The bank door’s closed during May

1864 when General Grant and his Union troops defeated the Confederates at the battle of Port

Gibson. Union troops used the bank as a Union Headquarters and field hospital until the end of

the war. After the Civil War the bank’s building was used as a boarding house until it finally

reopened as a fully operational bank in 1890 (R. Gage IV, personal communication, October 10,

2012).

Lofton (2005) tells that in 1916, Robert Gage IV’s great grandfather, Judge R.D. Gage,

returned home to Port Gibson from Texas and bought the controlling interest in the small bank.

As said by Lofton (2005), “There has been a Gage at the helm ever since”(p.31). In 1999, the

current CEO and Chairman of the Board, Robert D. Gage IV, changed the name of the bank to

RiverHills Bank after opening two branches in Vicksburg, Mississippi. This small town bank has

survived some of history’s most infamous economical tragedies including the Civil War, the

Great depression and numerous other economic downs. Four generations of Gages later the

bank is still expanding and thriving.

Figure 3 (Stevens Auction Company, 2012)

Traditions

RiverHills Bank is a bank that runs on the relationships they form with the clients of their

community. Lofton (2005) reported Gage IV saying “Personal service has always been a

hallmark of our bank” (pp. 31). Corporate culture plays a part here in that when employees are

happy the custom service they provide is much better. RiverHills Bank ensures the happiness of

their employees in a number of ways.

Bank funded parties

Birthday parties

Bridal Showers

Baby Showers

Retirement

Retirement party paid for by the bank

Senior Management (Senior VP or above) is presented with a gift

Customer appreciation

Birthday cards sent via e-mail to all clients

Holiday festivities

Bank gives employees a Wal-Mart gift card as a Christmas present

Santa Clause in the bank during Christmas season

Bowls full of candy in the bank during Halloween season

*All of the bulleted information above described by R. Gage IV (personal communication,

October 10, 2012)

The bank works hard to keep their employees happy and in high spirits. The bank used

to have a Christmas party for its employees, but decided to give the employees the option of a

Wal-Mart gift card instead, which they decided they would rather have (R. Gage IV, personal

communication, October 10, 2012). These traditions are vital in continuing the great corporate

culture that exists at RiverHills Bank.

Heroes/Legends/Myths

Like most old businesses, a certain level of mystery surrounds RiverHills Bank. The long

standing tradition of RiverHills Bank began when the historic building the bank now occupies

was built in 1840. The building stood through the civil war and was made into a new bank in

1890. In 1916, Judge R.D. Gage bought the controlling interest of the then Port Gibson Bank.

The name was later changed to RiverHills Bank in 1999. With such strong history, intriguing

stories, some accurate and some tall tales undoubtedly, are sure to be present.

Heroes. The heroes’ of RiverHills Bank has to be the Gage family. Lofton (2005)

discussed the Gage family’s four-generation long ownership of the bank, and the bank has now

become somewhat of a family business. In 1999, Robert Gage IV decided to expand the bank

with two new locations in Vicksburg, MS, and is now set to open the banks fourth location in

Madison, MS. The Gage’s show no signs of letting ownership of the bank leave their family’s

hands.

Myths. R. Gage IV (personal communication, October 10, 2012) explained the story of a

photographer coming to the bank awhile back to take pictures. While in the directors’ room he

took multiple photos of the same shot. When those photos were developed, there were small

white floating circles in one of the pictures that didn’t appear in the rest of the photos, even the

ones of the same shot. This created the story of the Orbs, which are said to be ghosts, perhaps

of soldiers killed in the civil war, who live in the building of the bank.

These stories are small quirks that add to the corporate culture of RiverHills Bank make

it even more interesting. While the truth about the Orbs will probably never be known, the

recorded history of the bank itself is enough to intrigue many.

Describe Your Organizations Culture

The culture of RiverHills Bank is not like that of most banks. Located in South Mississippi,

there is a small town vibe that you feel right when you walk through the door. Most employees

know all the clients and some of them have grown up together. You cannot get that personal

service at a large bank, and that is what RiverHills Bank prides themselves on (R. Gage IV,

personal communication, October 10, 2012). The banks culture is started from right at the top,

with the Gage family themselves. With the Gage family at the helm for the past four-

generations, it seems very unlikely this culture will change, and the employees of RiverHills

Bank would not have it any other way.

Conclusion

The best way to describe the corporate culture that surrounds RiverHills Bank and has

kept it running strong since the late 1800’s is family. RiverHills is a family owned bank and every

time you step into the bank you feel like family because it is important that all employees are

treated like customers and customers should feel like family as well. We as a group believe

RiverHills has established an environment anyone would feel comfortable working in. You feel

secure working for a company that has remained a staple in this Mississippi community through

four generations in the Gage family. RiverHills Bank offers their employees’ careers rather than

jobs; you will receive all the tools and support you may need to excel in your financial

department. We believe that RiverHills Bank is a company that would be a wonderful family to

join for many years.

References

Lofton, Lynn. (2005). Gage carries on four-generation tradition of banking. Mississippi Business Journal, May 16-22, p. 29, 31.

RiverHills Bank. (2012). Real Estate for Sale [Photograph], Retrieved October 11, 2012, from: https://www.riverhillsbank.com/realestate.php

Pratt, Christine. (2011, April 25). What Is Wrong With Big Banks’ Communication These Days? Retrieved from http://aitegroupblog.com/banking-payments/what-is-wrong-with-big-banks’-communication-these-days/

Stevens Auction Company. (2012). Bank of Port Gibson Share of Stock [Photograph], Retrieved

October 11,2012, from: http://jdstevensstables.com/Old%20auctions/31%20Oct

%2009%20WEB/pages/353%20-%20Merchant%27s%20Bank%2C%20Port%20Gibson%20--

%20Bank%20Shares%2C%201850.htm

Appendix A

Interview Participants

The group conducted the interview with Mr. Robert D. Gage IV on October 10, 2012.

Name Title Organization Location

Gage IV, Robert D. CEO & Chairman of

the Board

RiverHills Bank Port Gibson, MS

Appendix B

Interview Questions

1. What is RiverHills Bank’s mission?

2. What are the bank’s visions and goals?

3. How do you communicate within your company and outside the company?

4. Tell me the hierarchy of the bank.

5. How would you describe your employee’s attitude at work? Work atmosphere?

6. How do you communicate to your clients and potential customers?

7. Tell me some rites and rituals that are preformed at the bank.

8. What are some recognizable symbols of the bank?

9. What would be considered “norms” at your company?

10. From beginning to end what is the history of the historical bank?

11. Do you have any traditions such as Christmas parties?

12. Are there any legends or myths regarding the bank?