Citizens Bank experiences another good year

Staff Reports

   While 2001 held many successes for Citizens Bank Tri-Cities, the terrorist attack of Sept. 11 made the most lasting impression.
   "The attack on our country will certainly be what we remember most about 2001. All Americans are still feeling the impact," said Dale Fair, executive vice president, Citizens Bank Tri-Cities. "Everyone was worried about the slipping economy and the aftermath of Sept. 11, but the financial industry as a whole stood strong. We achieved our financial goals and feel very fortunate that we had another successful year."
   Fair pointed out that despite layoffs and a slumping economy, the dramatic drop in the prime interest rate played a role in helping the bank achieve its lending goals with a huge refinancing boom.
   "I think there were eight or nine drops in a 12-month period which was almost a record," Fair said. "I know we haven't seen that in my 20-plus years at the bank. It was a roller coaster kind of year with prime dropping more than 400 basis points.
   "While falling interest rates are good for borrowers, it can adversely affect people living on fixed incomes who depend on the interest on their money. As a locally-owned community bank, we work directly with customers facing financial difficulties -- that's what separates community banks from the super regional banks. If adversity strikes, we're going to roll up our sleeves and work with everyone affected."
   Fair pointed out that while there are still some ripple effects from Sept. 11, the economy is looking better.
   "The stock market has started back up a little and some of the economic indicators are positive that sometime before the end of the year we'll see the economy turn around," Fair said. "Although the first quarter has gotten off to a slow start, we're anticipating another positive year ahead."
   According to Citizens Bank Chairman and CEO Joe LaPorte III, the local economy will dictate a lot of what happens in the coming year.
   "Last year in the fourth quarter, we saw the lowest mortgage rates in 30 or 40 years, and we experienced a lot of lending activity," LaPorte said. "I expect with the economy being what it is and all of the recent refinancing that took place, mortgage lending this year will be a lot slower or the volume will be less.
   "It would be nice for our region's economy if we had some good news on job creations. I know there are some developments in the works in Johnson City and Kingsport as well as Bristol, Va. When people spend money, it goes through the whole economy, and if you create jobs, people are going to spend money. The multiplier throughout the economy of one dollar spent is incredible.
   "Citizens spent the first quarter of 2001 enhancing its new presence in Bristol TN/VA and opening a new office location in South Johnson City at the Kroger Super Center. The bank completed the acquisition of Twin City Federal Savings Bank in Bristol in December 2000 giving Citizens an additional $100 million in assets and four new office locations, including one in Virginia. Citizens now has 13 branch locations in the Tri-Cities and 15 ATM locations.
   "Our assets were $553 million as of Dec. 31, 2001," said LaPorte. "We have a strong capital base of $58 million so we can consider other acquisitions if the right one presents itself.
   "We are very excited about our growth opportunities in Bristol, especially in commercial lending. Twin City was very limited in its commercial lending abilities so we're working hard to get the word out that we have numerous lending options for businesses including SBA loans."
   According to LaPorte, Citizens increased its revenues by $28 million, and he cites the Twin acquisition as a contributing factor. Future plans for Citizens include increasing market share and providing the high-touch service the bank has become known for.
   "We want to continue to grow market share in all of the areas we serve," LaPorte said. "Citizens has excellent locations throughout the entire Tri-Cities area in addition to convenience services such as free checking, free online banking and 24-hour bank-by-phone. For more information on Citizens Bank Tri-Cities, call 423-543-2265 or go to the bank's Web site at www.citizensbanktricities.com.