Elite Checking and Small Business Online for Business Package Now Available
Citizens National Bank is excited to announce new offerings for our business customers; Elite Checking, a personal checking account with special perks for business owners and a Small Business Package of Online for Business.
Elite Checking is our most comprehensive personal checking account, offering our highest level of benefits. It takes into account the total relationship, both business and personal balances, and offers benefits including unlimited ATM withdrawal surcharge rebates, a Platinum Visa credit card*, and an introductory rate on all balances of 0.35% APY**. According to Amy Yochum, VP Treasury Management, “We truly appreciate the trust our business owners put in our bank in regards to their business finances and we wanted to create an account that provided real value that they would expand that relationship to include their personal accounts. I’m confident Elite Checking does that.” Those interested in learning more about Elite Checking should contact their local CNB office.
Additionally, CNB has created a new Online for Business Package. Previously, the bank offered three options for business online banking:
- Basic – Customers can see both personal and business accounts with one login, transfer money between accounts and pay bills online.
- Basic Plus – Offers the additional capability of initiating wire transfers.
- Deluxe – offers full ACH capability, including electronic vendor payments and returns.
A fourth package option, Small Business, has been created to cater to those businesses who specifically want to offer direct deposit to their employees and complete their tax payments online. “We discovered a need for businesses who wanted to offer the convenience of direct deposit and eliminate the cost of cutting checks but didn’t need all the bells and whistles that come with our Deluxe product. This Small Business package fills that need,” explains Yochum. The Small Business Package is now available by contacting your Business Banking Officer.
*Subject to credit approval. **Annual percentage yield (APY) accurate as of 1/3/14. The above stated APY is guaranteed on all balances for the first 6 months after the account is opened. Minimum opening balance is $50. After 6 months the applicable standard tiered variable rates for the Elite Checking Account will apply. Balances of $100,000 and above currently earn 0.07% APY; balances ranging between $25,000-$99,999.99 currently earn 0.05% APY; balances ranging between $7,500-$24,999.99 currently earn 0.03% APY; balances ranging between $2,500-$7,499.99 currently earn 0.01% APY; balances below $2,500 do not earn interest. Fees could reduce earnings.
Every January I like to consider how the banking industry has changed and take stock of our bank’s position. With all the attention that the large banks receive it is good to be reminded that community banks still make up 97% of all banks in this country numbering approximately 7,000 banks with more than 50,000 locations. Of all banks, more than 90% are small banks with assets under $1 billion; 31% of those have assets under $100 million. With total assets of $650 million Citizens falls right in line with these numbers.
While large banks have accumulated 90% of the total banking assets they only comprise 40% of the loans to small businesses and farms. Banks with less than $10 billion in assets make 58% of these types of loans. Banks like Citizens with assets under $1 billion make up 38% of that number. There are many reasons businesses and farms choose smaller banks over large national banks. Small banks focus attention on the needs of families, businesses and farmers while large banks are structured to focus on serving large corporations. Small banks’ boards of directors are made up of local citizens who want to advance the interests of the towns and cities where their banks do business as opposed to large banks with boards of directors in large cities many miles away.
Technology has leveled the playing field for small banks now able to offer anytime, anywhere electronic and mobile banking, automated teller machines, credit and debit cards, competitive loan and deposit rates, and world class investment products. Both large and small banks have certain competitive advantages in our complex financial system today that should be healthy for the banking industry for many years to come. As part of that industry, Citizens National Bank will remain strong and advocate for our customers as a true community bank.
Defiance Office to open Spring 2014. Loan production office now open in Toledo!
As a strong community bank, we continually look for opportunities to reach more customers and offer our services to more businesses.
In 2013 we realized the need for a full-service branch in Defiance, having served that market since 2011. We broke ground on this new facility in September and construction is expected to be completed by May. The new office will be located at 601 E. Second Street and will be a full-service banking center including commercial and mortgage lending, business and personal deposit accounts as well as access to the bank’s investment center. “As our involvement with the Defiance community and our relationships with our clients have grown we realized the need to offer a full-service office to service our customers better. The state-of-the-art facility and comfort we will be able to now provide our Defiance area clients will be second to none in this area,” states Defiance City President, Brad Spitnale.
In January, another avenue for expansion was created when CNB opened a loan production office headed up by Nelson Shaffer, SVP/Market President in Toledo. The new office is located at 3454 Oak Alley Court, Suite 501. A Toledo native, Shaffer states “I’m proud to be part of the Toledo community and introduce Citizens National Bank to our market. The financial strength of CNB and the growth they’ve realized over the past 3 years is exceptional and I look forward to helping them gain more growth through businesses I’m able to partner with.” Services offered through this office include commercial lending and access to deposits through the bank’s Online for Business and Merchant Capture services.
Citizens National Bank is excited to begin new customer relationships in these markets and offer more locations for our current customers to access our services through. Click here for a complete list of our locations or call toll free 800-448-0025 to speak with a customer care representative.
Bob Morgan, Economist with Austin Associates, LLC
“2014 is a pivotal year for the US economy,” states economist Bob Morgan with Austin Associates. Mr. Morgan works with Citizens National Bank on an ongoing basis to advise the bank of economic trends and considerations moving forward. He recently shared his opinion about how he sees the economy shaping up this year.
Compared historically, the recent recession cycle was similar to that of 1980-1982. What happened after those recessions, however, has been very different. In the 1980’s there was a huge spike in personal consumption expenditures (PCE), 4.6% in 1983 and 7.3% in 1984. This was an inflationary cycle that led to growth in our economy. People were spending money. Unlike that period, the years coming out of this recent recession have seen minimal increases in PCE, 2.5% in 2011 and 2.2% in 2012, and a continuation of deleveraging by consumers in an effort to pay down debt. According to Morgan, “Seventy-percent of our nation’s gross domestic product (GDP) is based upon PCE which explains our very weak economic recovery.” Factors that limit PCE include: labor market uncertainty, low wage and income growth, political deadlock, lack of a long-term fiscal policy by our government and fear of increasing healthcare costs due to the health care law. “The biggest factor which is affecting the slowdown in PCE, however, is our nation’s demographics and that is a fundamental difference between now and the 1980’s,” states Morgan. Baby boomers are the fastest growing population segment and their spending habits are very different than those of younger generations. They spend less on housing and lifestyle expenses which traditionally have been big boons for an economic recovery.
For these reasons, Morgan feels the US will not see a rapid rate of growth that will stimulate the economy any time soon. He predicts a GDP growth rate of 2-2½% through the second quarter and 3-3½% by the end of the year. Deleveraging will continue at a reduced level and job growth will average less than 200,000 per month. “Much of this is due to increased efficiencies in manufacturing processes and the need for a higher skilled labor force than in the past,” Morgan explains. The unemployment rate has already dropped to around 7% and he predicts inflation will remain below 2% for the year. He doesn’t foresee interest rates changing well into 2014, maybe even longer.
Bright spots in the economy do exist, specifically in the auto industry and housing sectors. The average age of a car in the US is still 10.7 years old, so there will continue to be demand for new vehicles for the next 2 or 3 years Morgan feels. Housing also will see increased demand as the inventory of homes is currently less than 5 months’ need at current sales levels. New home construction will be needed.
“Of course much of the economy is dependent upon what the government will do about the debt ceiling, a federal budget moving forward and what the Federal Reserve’s monetary policy will be,” Morgan comments. The next few years’ economic questions will be answered by what is decided in 2014.
To view Bob’s entire presentation, click here.
“We have a mutual friendship with our banker and believe he is going to steer us in the right direction for our business and take us where we need to be.” – Shawn and Jacob Wildermuth, Wildermuth Farms
Father and son Shawn and Jacob Wildermuth have developed a relationship with their banker, Bob Inniger, built on trust. From visiting the farm on a regular basis to making suggestions for products that will save them time and money, Bob’s commitment to his customers is evident in the confidence the Wildermuth’s have in him. Services such as online banking and merchant capture allow the Wildermuth’s to bank when it’s convenient for them and gives them the flexibility to travel across the country when they participate in tractor and truck pulls.