Message from the President

J. Michael Romey, President/CEO

ICBA Recognition of CNB for 30 Years of Membership

Recently I received a letter and plaque from the ICBA, our National Banking Association, for being a member for the past 30 years. It was a nice gesture of recognition since the association was established to serve the exclusive needs of community banks, but it also got me thinking about the banking industry over that same time period. Banks have survived two episodes of bank failures and a long-term process of consolidation in the last 30 years. This industry consolidation has had the biggest effect on the smallest and largest banks in our country. The very smallest banks have seen their numbers decline by almost 85% while the largest banks have almost tripled in number and their assets have increased 10 times. The trend has resulted in the average community bank size becoming larger, and in fact Citizens National Bank has grown from $100mm to $650mm in assets over the last 30 years. Consolidation has had a much lesser effect on larger community banks like Citizens because of our conservative underwriting and the economies of scale that do not appear to be working against us. When viewing our expense ratio in relation to peers we compare very favorably. We have been able to grow by branching out in other communities, offering personal banking services not offered by the larger banks. We still obtain most of our deposits locally and make most our loans to local businesses. No one can predict the future of our industry but banks our size with conservative practices have remained stable during this consolidation phase and have continued to serve the credit needs of small businesses and provide services to the local communities. Here’s to another 30 years!

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