The history of Citizens National Bank, Macomb, Illinois, was written by J. Binnie Wolfe in 1990 for the bank’s centennial anniversary. Addendums have been included that address the history of the bank since 1990.
The
bank has been under the direction and supervision of a
Binnie or a member of the Binnie family since it was organized.
John Binnie (see photo), the founder of the Citizens Bank
of Macomb, was born in Falkirk, Scotland, in 1845 in a
stone house which had a small iron gate with the insignia
in iron (Standa Lane, which means end of the lane). His
father, Andrew Binnie and his mother, Agnes Waddell, had
seven children, five of whom survived. In 1849 Andrew
Binnie decided he and his family should move to America.
They came by sailing vessel from Glasgow, Scotland, June
5, 1849, and arrived in New York one month later. They
then traveled by boat up the Hudson River, across the
Erie Canal and the Great Lakes, then down the Ohio River,
and finally up the Illinois River to Sharp's Landing near
Astoria, Illinois. In a short time they traveled overland
to Scotland Township, McDonough County, where they established
their home.
Andrew
Binnie passed away during the severe winter six years
later, leaving his twin sons, John and Robert, 15 years
old, a younger son, James, and a daughter, Annie (who
later married John F. Watson), for the widow to raise
and look after. The family was well educated for the times,
but just how they all survived and got along is hard to
imagine. We know the mother passed away when she was 66
years old. In the meantime, John and Robert formed a partnership
to buy and sell livestock, which must have been quite
successful. Robert purchased a farm in 1866 and the following
year John purchased another farm. He had to pay for it
in five installments, with the first due January 15, 1868,
in the amount of $3,500; the second due June 6, 1868,
in the amount of $4,000; the third installment of $2,000
was due January 1, 1869; the fourth of $2,000 was due
January 1, 1870; and the final installment of $3,700 was
due on January 1, 1871, for a total of $15,200. The farm
consisted of 320 acres due east of Macomb, known as the
East Farm, now held in the name of John Binnie Wolfe,
a grandson. Mr. John Binnie was attracted to the farm
because it was rolling, allowing the land to dry quicker
after a rain, and also because it was six miles east of
Macomb.
John Binnie at the time was 18 years old, and he was attracted to
the girl who lived at an adjoining farm. He always stopped
by her place to have Effie Savage (see photo) tie his
tie properly before he called on anyone he wished to impress.
On one evening Effie Savage suggested that he would save
a little time by calling on her, and she told him he would
have as much fun. As a result, he married her.
During
the years Mr. and Mrs. John Binnie were blessed with two
daughters, Eleanor and Eunice. Still later a son, Otho,
was born he was a handsome young man, but died of perontinitis
at the age of 19.
John Binnie (see photo) was a vigorous
man standing six feet tall with broad shoulders and a
weight of 190 pounds. He was able to walk through snow
drifts when snow was so deep that horses could not travel
the country roads. He would walk across the fences on
the way to Macomb, which incidentally was approximately
six miles from his home. He was elected Tax Assessor of
Scotland Township for at least one year.
In
1889, John Binnie decided to build the bank building in
Macomb. The square was not, at that time, paved; but the
Courthouse was eight years old, and the population of
Macomb was 4,052. In 1890, John Binnie and his family
moved to 521 North Lafayette Street in Macomb.
The
Binnie brothers' bank was operated as a private bank without
any supervision or regulation of any kind from 1890 to
1920. Early in the first year, Robert Binnie decided that
he could make as much money farming, and he sold his stock
to Elmer T. Walker, the cashier. The story is told that
Robert Binnie did not like to wear a necktie, which was
required when the officers met to discuss the loans, and
that was the real reason for his decision.
John Binnie and James Binnie (see photos) discussed all the
loans along with Elmer T. Walker, Cashier (see photo).
James Binnie was Vice President of the bank and was one
of the original stockholders. He was a veteran of the
Civil War and was also an active farmer. His wealth of
experience was a constant source of assistance to the
bank. He was the grandfather of Dorothy Allen.
In
1907, Edward C. Wolfe, husband of Eleanor Binnie and father
of J. B. Wolfe, who had been born and raised on a farm
of 360 acres just south of Walnut Grove, Illinois, and
had attended Butler University, decided he would like
to be a banker. In 1913, Lawrence Fisher, husband of Eunice
Binnie and father of John Fisher, who had graduated from
St. John's Military Academy, decided he wanted to be a
banker as the Fisher Foundry was closing.
In
1920, the State of Illinois passed the legislation stating
the banks had the privilege of being a state bank or joining
the national banking system. The Citizens State Bank of
Macomb was organized with John Binnie as President; Lawrence
Fisher as Vice President; Elmer T. Walker, Cashier; and
Edward C. Wolfe, Assistant Cashier. All of these men were
veteran bankers with 21, 7, 21, and 13 years of banking
experience.
The
ladies of the family decided that John Binnie should wear
a better looking hat to work. They were quite surprised
how quickly he acquiesced to their suggestion. Quite some
time later they found out that he always went through
the horse barn at the back of the house on his way to
work where he deposited the new hat on a peg and took
his old, comfortable hat and put it on his head and walked
on through to the alley, which was a shorter route to
town. When he returned he would walk in the same places,
go through the barn, exchange hats, and walk into the
house; and everybody was satisfied.
In
1927, John Binnie died. Then later in the same year, James
Binnie also passed away. Mrs. John Binnie was elected
Chairman of the Board; E. T. Walker was elected President;
Lawrence Fisher, Vice President; E. C. Wolfe, Cashier;
Mable Edie, Assistant Cashier.
In
1929 to 1930, the stock market crash caught the bank in
the midst of a remodeling program. It included a new stone
front; a new vault and vault door; and low walnut teller
window fixtures, the first in this area without bars or
cages. Deposits declined, but these improvements plus
an extension to the rear of the bank were completed on
schedule. Unquestionably, the improvements of the bank
did help to make the bank more accessible and helped to
keep it going.
After
President Roosevelt declared the nation-wide bank moratorium
in 1933, the Citizens Bank was allowed to re-open its
doors the first day designated for outlying country banks.
However, the large city banks of New York and Chicago
had received their authority to re-open the previous day.
In
1936, J. Binnie Wolfe decided he would like to be a banker,
after graduating from Knox College and entering Northwestern
Business University and gaining experience as Assistant
F.D.I.C. Bank Examiner.
In
1939, a national charter was applied for and was granted.
This action was prompted by banking laws and the elimination
of duplication by both the state and federal agencies.
At that time the total assets of the bank were just under
$1,000,000.
Edward
C. Wolfe passed away in 1942, and J. B. Wolfe was elected
as Cashier of the bank. 
During World War II when the U. S. Army troops were stationed
at Camp Ellis, 23 miles east of Macomb, the Citizens National
Bank cooperated with the Army by establishing a banking
facility. Mr. John Fisher, who formerly was a practicing
attorney but also had previous banking experience, was
placed in charge of the facility. He had previously been
turned down by the armed services because of a physical
impairment. Camp Ellis was operated by the Army for training
purposes. The number of men assigned there varied from
50,000 to over 60,000. The facility opened July, 1943,
and was in constant use until October 1, 1945.
During
the World War, the bank officers formally were reduced
to three men in charge, Elmer Walker, J. B. Wolfe, and
John Fisher. The remainder of the people who helped us
were young ladies whose husbands had been drafted and
were in the service of the U. S. Government. They were
quite efficient in their work and to recall some of them
were Mable Edie, Thelma Farr, Kathryn Gaddis, Lucille
Cox, Shirley Woolam, Nancy Dobey, Dorothy Spicer, Barbara
Markley, Marilyn McDaniel, Elizabeth Hall, Pauline Rigg,
Ella Bugg, Wanda Miller, Dorothy Rigg, Pauline Newell,
Alza Blakely, Barbara Brown, Carol Henkle, Doris Trone,
Lorraine Rockhold, and Maney Dunbar.
In
1946, Captain Al Cooper returned from the Army and later
on that same year, so did Clarence Leighty and Morris
Arnold, former employees. John Fisher decided to stay
in the banking business because deposits had grown and
earnings had improved.
The
installment loan department was established in 1946 to
finance customer purchases of automobiles, farm machinery,
household appliances, and so forth. In the following year
microfilming of all important bank records was inaugurated,
followed by the installation of a central air conditioning
system.
Mr.
Lawrence Fisher, Vice President, died in 1948.
In
1951 to 1952, under the direction of Elmer T. Walker,
Chairman; J. B. Wolfe, President; John Fisher, Vice President;
Alvin Cooper, Cashier; Clarence Leighty, Assistant Cashier,
the bank was completely redecorated and remodeled. New
blond mahogany teller windows were installed, and the
bank was extended back to Washington Street, where a combination
drive-up, walk-up teller window was placed in operation
for the convenience of our customers.
In
1954, at the suggestion of Fred Herndon, the friendly
bank slogan was adopted.
In
1955 the Farm Department was set up under the direction
of Raleigh J. Solomon to serve the farming interests of
the area and to accommodate the farm loan and farm management
field. R. J. Solomon had formerly been with the Production
Credit Association and later was in charge of the farm
loan department of McDonough and Henderson County.
In
1955, Elmer T. Walker died, and Mrs. Eleanor B. Wolfe,
daughter of John Binnie, was elected Chairman of the Board.
From 1930 to 1955, the officers of the bank kept the par
value per share at $100, which made $100,000 and the total
assets were $7,300,000. However, in 1960 as a result of
the increased business, they authorized a stock split
of 100%, which made the stock $200,000 and then added
to by selling an additional 100 shares to the public making
the total value $300,000.
In 1960 to keep pace with the steady growth,
the entire front section of the bank was remodeled. Al
Cooper was largely in charge of the final plans, along
with the help of the Bank Building Corporation of St.
Louis. An open house was held July 6, 1961 with over 3,000
guests to personally inspect the red brick front, the
spacious lobby with its 10 teller windows, and separate
consulting rooms for officers.
The
Trust Department was organized in January of 1963, with
Clarence Leighty designated as Trust officer. To provide
for further expansion in 1964, the bank acquired the corner
property to the east which formerly housed the A &
P Grocery.
In
1965, a 20% stock dividend was declared increasing the
total stock to $360,000. 
In the latter part of 1965, the back part of the
corner property building was demolished and a new motor
bank was constructed at the corner of Randolph and Washington
Streets, which consisted of four drive-through windows
and one glass-enclosed walk-up window. The plan for this
building was largely designed by Al Cooper along with
the Bank Building Company of St. Louis.
In
the latter part of 1965, Eleanor B. Wolfe, Chairman of
the Board passed away at 83 years of age.
In
1966 all checking accounts were placed on a data processing
system at the Commercial National Bank of Peoria. In the
future the bank would find many more uses for the computer
in other departments.
John
Fisher, Vice President, died in 1967.
In
1968, a 16 2/3% dividend was declared increasing the capital
to $420,000. The bank did make a steady and continuous
growth with total assets currently amounting to $15,000,000.
A staff of 40 persons, including 12 officers were employed
in the various departments of the bank. The officers at
that time were J. B. Wolfe, President and Chairman of
the Board; Alvin R. Cooper, Senior Vice President; R.
J. Solomon, Vice President and Farm Department Manager;
Clarence Leighty, Vice President and Trust Officer; David
Carson, Vice President; R. N. Shult, Auditor; M. L. France,
Assistant Vice President; James B. Schisler, Cashier;
Harold Summey, Assistant Cashier; Calvin C. Spencer, Assistant
Cashier and Assistant Farm Department Manager; K. W. Wyatt,
Assistant Cashier and Assistant Farm Department Manager.
Directors were A. R. Cooper, T. Mac Downing, Frank J.
Horn, C. L. Leighty, J. Dixson McRaven, Keith F. Scott,
R. J. Solomon, James M. Trapp, Randall W. Watson, and
J. B. Wolfe.
The
bank, as a result of the supervisory service decided to
sell some additional debentures. These debentures could
be included as stock at the time; and we, therefore, avoided
selling additional bank stock. So on April 3, 1970, we
sold 250,000 shares, consisting of $29,000 to mature December
31, 1975, at 7%, $35,000 to mature December 31, 1977,
at 7.5%, $186,000 to mature December 31, 1980, at 8%.
In addition, we sold $420,000 on July 1, 1972, to mature
on December 31, 1979, at 7%. However, such procedures
are not now allowed under the improved banking laws of
the country. But as a result of this action, the bank
did increase the amount of capital assets to $2,140,000.
At
this time Macomb and our own employees were having parking
problems. To relieve the situation Al Cooper contacted
the owner of the vacant lot across the street back of
the bank on Washington Street and was able to strike a
bargain. In doing so he also found that our own director,
Senator T. Mac Downing owned the two adjacent lots to
the west of the one we had already purchased. In addition,
he found that Mr. Downing also owned both of the lots
back of the lots on Washington Street on Jefferson Street
plus a property to the east on the corner of Jefferson
Street. The bank immediately drew up an agreement to purchase
the above listed properties owned by Mr. Downing as soon
as possible. This action gave more room and also helped
the city as much as it did our own customers.
A year later the bank decided to enlarge the bank building
back to Washington Street. In doing so it had to purchase
additional space for this purpose. We purchased all of
the properties located on the north end of Jefferson Street
including the W. C. Miner property plus the properties
located along the street all the way to South Lafayette
Street, with the exception of the Industry Fire Insurance
Company.
A
new drive-thru facility was built with six drive-thru
stations and one walk-up station, plus a night deposit.
The building was located on the center of the property
with a parking lot on either end. The traffic and the
business has been good and the bank is quite pleased to
have additional parking available.
Mr.
Richard H. Severs, the President of Farm King, was placed
on the Board of Directors in 1973, where he served for
12 years and then because of increased business, he asked
to be relieved of his duties as Director of the bank.
In 1973, J. B. Wolfe (see photo), who had been
President for 22 years, turned the position over to Alvin
R. Cooper, who had an excellent background in banking
and many years of experience. He was well-liked by both
the customers and employees.
In
1974, James M. Trapp, who had served faithfully on the
Board of Directors for four years, resigned.
In
1976, Mary Satter, daughter of J. B. Wolfe, was asked
to be a Bank Director. The bank had grown to $54,000,000
by 1980. Capital stood at $1,000,000 with $1,000,000 surplus,
and undivided profits of $1,180,000. In 1981, John Satter
was asked to be a Bank Director.
In
1982, a branch bank was established by the Citizens National
Bank. It was prompted by the growth of the University
and the establishment of the new Hy-Vee supermarket, in
addition to the other businesses in the area. The bank
installed a new ATM and offered our drop box and night
depository storage service. There were two teller windows
and a lobby which could accommodate over 60 persons at
any one time. In addition, the facility had adequate storage
space and two restrooms. The bank, after operating the
facility for several years, decided to close it because
no additional businesses were established. At this time,
we moved the ATM machine to the Western Illinois University
Union building on the campus.
In
1983, Al Cooper voluntarily resigned as President and
suggested that R. J. Solomon take his place. R. J. Solomon
was a most likable person with a winning personality and
many friends. He was born in McDonough County on a farm.
He attended Western Illinois University and then was employed
as an appraiser for the Production Credit Association
here in Macomb. During the war he was in the Air Force
of the U. S. Government. Later on when he returned from
the service, he was placed in charge of the McDonough
County and Henderson County Federal Land Bank Association.
In addition, he had been employed for a good many years
at our own bank.
The
country was already in a depression, but we did not feel
it here at the time. However, we were in very good financial
condition with assets of over $74,580,000, capital of
$1,000,000, surplus of $1,000,000, undivided profits of
$3,140,000, and reserves of $90,000. However, in 1985,
the depression finally was felt, and we were down $1,000,000
with total assets of $73,500,000 and no reserves for bad
debts. The following year, 1986, our total assets were
up to $75,683,00, capital $1,000,000, surplus $1,000,000,
and undivided profits of $3,866,000. Mr. R. J. Solomon
passed away in November of 1987. In 1987, we ended the
year with $78,190,000 in assets, capital of $1,000,000,
surplus of $1,000,000, undivided profits of $3,336,000.
In
March of 1988 Tim Flemming was elected President of the
bank. He has a strong personality and is quite knowledgeable,
especially in banking business. He formally commenced
with the First National Bank of Decatur where he worked
for 10 years and became the head loan officer. He was
asked to take over the Vice Presidency of the First National
Bank of Clinton, Iowa, where he remained for five years.
He knows the banking business, has instructed the various
officers under him, and he has a nice manner. We expect
good things to happen to the bank in the future. Tim Flemming
has been here over two years and has already increased
the earnings.
The
Directors of Citizens National Bank of Macomb authorized
a stock dividend of 10% for each stockholder as of October
20, 1989. This action brought the book value of the shares
close to $150 per share and was payable December 1, 1989.
As
of December 31, 1989, we had 48,373 shares of stock outstanding
with 1, 627 shares held by the holding company as treasury
stock. The total equity of the stock was $7,142,196. Book
value was $147.65 per share. This is the first time that
we have gone over $7,000,000 in equity capital.
Our
net income for the year 1989, was $966,637, and it was
our best year. Our capital to asset ratio amounted to
8%, while 6% is now required and 7% desired.
As
of February 28, 1990, the capital to assets ratio had
increased to 8.16%. With this momentum, we can look forward
for steady and continued growth.
At
the present time (1990), the directors of the Citizens
National Bank consist of Mr. J.B. Wolfe, Chairman of the
Board; Mrs. Mary Satter, Vice Chairman of the Board; Mr.
Timothy Flemming, President; Mr. Alvin Cooper, Retired
President; Mr. J. Dixson McRaven, Attorney; Mr. Arthur
Peyton, Electrical Consultant; Mr. John Satter, Attorney;
Mr. Keith Scott, Retired Circuit Judge; and Mr. Randall
Watson, Agricultural Business.
We
are very proud of our annual Statement of Condition for
the bank as of 1989. At the present time we are sincerely
contemplating an addition to the rear of the bank because
we actually need the room for expansion.
At
this date the contract has not yet been consummated.
FEBRUARY
1990 through JUNE 1996
In
June, 1991, Retired Judge Keith F. Scott passed away.
Judge Scott had been elected to the board of directors
in 1961 and served until December 1970, when regulations
prevented his serving on the board. Upon his retirement
from Circuit Judge of the Ninth Judicial District in the
State of Illinois he was re-elected to the board of directors
in January, 1976, and served until his second retirement
from the board in April, 1991.
By
1991 Citizens National Bank had grown to $100 million
in total assets, with $37.7 million in outstanding loans.
Total capital had grown to $8.1 million dollars. As a
result of its growth, the board of directors and management
made a commitment to expand the bank's facilities to better
serve its customers. A major expansion and remodeling
project, including a brand new brick front with ten large
arched windows, began in June, 1991, and was completed
in June, 1992.
It
was estimated over 4,000 persons visited the bank during
its grand opening in June, 1992, to see the new lobby
and offices. A spacious new board room was built and was
dedicated as the J. Binnie Wolfe Board Room.
Additional
growth of the bank and efforts to provide more convenient
banking services led to a 1993 purchase of several lots
on East Jackson Street in Macomb formerly occupied by
the Rural Equipment Co. A facility known as Citizens East
was constructed in 1993 using the same brick and building
design as the main bank on the south side of the square.
The facility at 1400 East Jackson Street has six drive-thru
lanes and a walk-in vestibule, and also has a 24 hour
drive-up ATM.
The
grand opening of Citizens East in August, 1993, was highlighted
by the presence of Chicago Bulls basketball guard B. J.
Armstrong, who gave a talk to over 2,000 people present
and signed hundreds of autographs for those in attendance.
On January 23, 1994, Mr. J. Binnie Wolfe passed away at the age of 86. Having joined the bank in 1935, his association with Citizens had spanned nearly 60 years. Mr. Wolfe's daughter, Mary E. Satter, a member of the Board of Directors since 1976, was appointed Chairman of the Board upon Mr. Wolfe's passing.
In
July, 1994 Citizens Central Bancorp, Inc. purchased the
Roseville State Bank in Roseville, Illinois, a successful
community 18 miles north of Macomb on U.S. Highway 67.
Located in Warren County. Roseville State Bank was just
completing its 50th year of business and was a $17 million
bank.
Early
in 1995, a decision was made to merge the Roseville State
Bank into Citizens National Bank in order to be able to
offer investment, trust, and ATM services as well as all
the regular deposit and lending services. The merger process
was later consummated on September 15, 1995.
In
December, 1995, Alvin R Cooper retired from the board
of directors. Mr. Cooper started work at Citizens in the
bookkeeping department in 1937 and was instrumental in
the bank's growth serving as Cashier from 1950 to 1968
and President from 1973 to 1983.
In April, 1996, Arthur H. Peyton passed away. Mr. Peyton
had been elected to the board of directors in January,
1971, and faithfully served the bank as director until
his retirement from the board in December, 1993.
Major
street improvements in Macomb resulted in widening of
Routes 67 and 136 greatly improving the traffic flow thru
Macomb. In a move designed to respond to the changing
traffic patterns and growth on West Jackson Street, the
bank's board of directors purchased several lots in 1995
from Lyle and Corinne Jones at 1100 West Jackson Street.
The
same brick and arched windows building design used at
the main bank and Citizens East are incorporated into
the Citizens West branch. It has four drive-thru lanes
and a lobby vestibule. A 24 hour drive-up ATM is also
located at Citizens West. Citizens West opened for business
in early August, 1996.
JUNE
1996 THROUGH JUNE 1999
After
the opening of Citizens West on West Jackson Street in
Macomb, Citizens then offered banking services in Macomb
at the main bank on the Macomb square, drive-up and walk-in
services on East and West Jackson Streets, and also at
the former drive-up on Jefferson Street, one block south
of the main bank. The bank also offered ATM services at
the main bank, Citizens East and Citizens West, the University
Union at Western Illinois University, McDonough District
Hospital, Wal-Mart and the Hyvee Food Store. As a result
of the new drive-ins on East and West Jackson Streets
having better traffic access, the Board of Directors decided
to close the Jefferson Street drive-in in the fall of
1996.
In
addition to the above banking facilities, at the end of
1996 the bank also offered full banking services at its
Roseville Office. Total assets were $125 million and the
bank had more than $13.3 million in capital.
Early
in 1997 the Board of Directors thoroughly reviewed the
Y2K issue and the potential impact to the banks hardware
and software systems. A decision was made in the first
quarter of 1997 to completely replace the bank's primary
systems and installed an IBM AS 400 computer and software
from Jack Henry Associates. This move resulted in significant
costs but the Board was committed to take all necessary
steps to ensure the bank's ability to continue to provide
efficient and quality financial services. A decision was
made later in 1997 to replace the bank's on-line teller
system, the Customer Service Platform system and the Load
Documentation system to compliment the Jack Henry Software
systems.
Also
in the first quarter of 1997, Lafayette Square, a nearby
retirement housing complex, expressed its need for additional
parking and Citizens agreed to sell the west part of the
former drive-in location on Jefferson Street to Lafayette
Square.
As
1997 progressed, management and the Board of Directors
continued their search for opportunities to expand its
level of financial services. Discussions commenced in
the summer of 1997 with the owner of a independent insurance
agency in Roseville. The negotiations led to an agreement
between the bank and the insurance agency and on September
1, 1997, the Roseville Hometown Insurance Agency was purchased
and moved into the bank lobby in the Roseville Office.
The owner of the agency joined Citizens and became the
manager of the agency, known as the Citizens Hometown
Insurance Agency. The bank added a customer service representative
to work in the agency and also added a new sales representative
to offer insurance products in the main bank in Macomb.
Successful growth in the insurance agency led to increasing
the sales staff in Macomb early in 1999.
The
successful conversion to the Jack Henry software allowed
the bank to acquire an Internet Banking product called
NetTeller. The bank acquired the NetTeller system and
put it into a test mode in September 1998. The product
was made available to customers in the fourth quarter
of 1998. Plans immediately got underway to include a bill-payer
service as part of the Internet banking product and the
bill-payer product was scheduled to be offered in the
third quarter of 1999.
By
late 1997 assets managed by the Trust Department exceeded
$100 million. Serious study was given to alternatives
available to increase business and sales in the Trust
Department and also to solve the Year 2000 processing
issue. In October 1997 the Board authorized entering an
agreement with SEI, a premier trust processing company,
to perform trust processing for the trust department.
The conversion to SEI was completed in June 1998.
In
September 1998, management initiated discussions with
a local broker who sold annuities and mutual funds. The
board felt the acquisition of his book of business would
fit very well with the expansion of trust services and
asset management, and therefore, purchased the $25 million
book of business. The bank also added a successful sales
individual to manage and expand the annuity and mutual
funds department. The annuity and mutual funds sales services,
known as the Investment Center, was brought under the
wing of trust department, now known as the Trust and Asset
Management Department.
In
the summer of 1998 discussions were started with First
Banks, Inc. of St. Louis concerning the potential purchase
of some of First Bank's Illinois branches located in the
west part of Illinois. The discussions led to a definitive
agreement to purchase four branches, located in the Illinois
communities of Galva, Mt. Pulaski, Carlinville and Bunker
Hill. The transaction to purchase the four branches was
consummated on April 1, 1999. total assets of the bank
increased to $175 million after the acquisition.
The
Board of Directors, upon reviewing its strategic plan
for acquiring locations in the general western Illinois
area took action in January 1999, to change the bank's
legal name to Citizens National Bank, dropping the "of
Macomb" from the bank name.
In
December 1998 the bank had the opportunity to engage in
a bidding process to purchase one or more of the Illinois
branches being offered for sale by the Mercantile Bank
in St. Louis, Mo. Recognizing a unique opportunity to
expand its financial base in Macoupin County, Illinois,
where the bank had already acquired branches in Carlinville
and Bunker Hill, the bank entered the bidding process.
In January 1999, the bank was informed it was the successful
bidder for the Staunton, Illinois branch.
After
the consummation of the Staunton branch on June 24, 1999,
total assets of the bank exceeded $190 million and its
total equity capital was over $16 million. in addition
to its three banking locations at Macomb in McDonough
County, by mid-year 1999 Citizens National Bank offered
its full range of financial services at Roseville in Warren
County, Galva in Henry County, and at Carlinville, Bunker
Hill and Staunton in Macoupin County.
In
addition to a full range of banking products including
ATM and Internet banking products, other financial services
offered at all locations include trust and asset management
services, farm management, mutual funds and annuities,
and a full line of insurance products.
JUNE, 1999 THROUGH JUNE, 2005
After the 1999 acquisitions the bank continued with its plan to further define its market area and a decision was made to sell the Mt. Pulaski office early in 2001. The closing date of the sale was in the third quarter of 2001.
A larger building had been purchased in Bunker Hill in 1999 and it was completely remodeled with the addition of two drive-up lanes as well as a drive-up ATM. A new vault was constructed which allowed the installation of safety deposit boxes for customer use. The grand opening of the new Bunker Hill office was held in June 2000.
Improvements were made in the fall of 2000 at the Galva office, and they included a drive-up ATM and a drive-up window for customer banking services. In addition safety deposit boxes were installed to add that convenience to the Galva office customers.
The Carlinville office was remodeled in 2004 by adding three offices and redecorating the lobby. The additional space was used for lending and insurance products and services. New CSR and customer reception areas were part of the remodeling project and a drive-up ATM was also installed next to the existing drive-in units.
Members of the senior management team in 2000 included President and CEO T C Flemming, Executive Vice President J B Schisler and Senior Vice Presidents G B Grimm, K A Pico, and Todd Lester, who had joined the senior management team in late 1999. In its continuing emphasis to expand non-financial banking services including brokerage and trust, G W Turner was appointed First Vice President in late 2004 and he joined the senior management team as head of the bank's brokerage and trust departments.
During the years from 1999 to 2004 the bank had grown in total assets to approximately $220 million. Net outstanding loans had increased to over $140 million. Total capital had increased to over $22 million by the end of 2004 from $15.1 million in 1999.
The board of directors on December 31, 2004 included Chairman of the Board Mary E Satter and directors T C Flemming, J G Satter, P J Burke, J K Dively, N L Foster, W C Gossett, J D McRaven, J B Schisler and R W Watson.
The bank began an expansion in 2000 to broaden its base of insurance and investment services by acquiring three insurance agencies. Two were located in Lewistown, Illinois, and one in Macomb. A professional insurance agency manager was brought into the agency in 2000.
One of the bank's next goals was to establish a presence in Rushville, Illinois, and a de novo insurance agency office was established there in 2001. By the end of 2003, the annualized written premium had increased to nearly $3.5 million, more than triple the level in 2000.
The bank established a de novo insurance agency in the Carlinville banking office on January 1, 2004. In July 2004, the bank acquired an agency in Rushville and merged the two Rushville offices into a single office location.
At the end of 2004 the bank had six Illinois banking locations in Macomb, Roseville, Galva, Carlinville, Bunker Hill and Staunton. Investment and trust services were available in each office in addition to the traditional deposit and lending services.
At this time, Citizens was offering insurance services at the Macomb, Roseville, and Carlinville banking offices and also had insurance agency offices in the communities of Lewistown and Rushville. The staff of the insurance center at year-end included the manager, five insurance producers, five CSRs and one employee in operations. Through internal growth and agency acquisitions, total annualized premium written exceeded $5 million by early 2005.
The board of directors of Citizens Central Bancorp, Inc., of which the bank was a wholly owned subsidiary, determined in 2004 that in order to best serve its customers, shareholders and staff, various options should be identified and researched that would allow the bank to achieve its goals over the longer term basis. Realizing that it would require increased financial strength and a greater range of financial products in order to allow Citizens to continue its 115 year history of growth in providing quality and efficient financial services, the holding company board entered discussions in late 2004 with individuals whose objectives in providing community banking financial services were consistent with their own.
After numerous discussions with several investor groups concerning the future of Citizens National Bank and comparing long term goals in providing quality financial services in a community banking environment, an agreement was reached on April 27, 2005, to sell the subsidiary bank to the JGS Investment Group located in Oak Brook, Illinois. The group, owned by Mr. John Gorman and Mr. Gary Svec , had previously acquired and managed several banks and had developed a consistent reputation for maintaining strong local community ties and relationships by working with existing staff and systems not only to maintain, but to increase those relationships and provide greater access to financial services and products.
The transaction of the sale of the bank by Citizens Central Bancorp, Inc. to JGS Investments was scheduled for the first quarter of 2006 upon the ratification of the transaction by the shareholders of both parties and the receipt of the required regulatory approvals.
The bank purchased a new deposit and loan platform processing system early in 2005 and one of the benefits of the deposit system was the feature of an automated record keeping and tracking system for referrals for new business opportunities. Upon the installation of the new software in May, 2005, the bank immediately recognized the benefits of a fully automated referral system through a significant increase in successful referrals between the various departments of the bank including the brokerage, trust and insurance divisions of the bank.
JUNE, 2005 THROUGH JUNE, 2006
The bank purchased a new accounting software system called ProfitStar in the second quarter of 2005. The software would be used to enhance the monthly balance sheet and profit and loss reports, and later in the year, be used to prepare the monthly board of director reports. The software provided for increased efficiencies by allowing data to be automatically downloaded from the bank’s mainframe accounting system and this significantly reduced the manual effort required to prepare the monthly and quarterly reports. The system also provided additional detailed reports on interest rates and interest margin analysis.
Later in the second quarter of 2005 the bank purchased a new software package called “Yellowhammer” which was specially designed to identify unique or unusual check or deposit transactions on certain deposit accounts. The software was designed to reduce fraudulent or unauthorized transactions that were occurring at an increasing frequency.
It became obvious very soon that the new software would play an important role in reducing fraud, and therefore losses, to both the bank and its customers who had been targeted for fraudulent transactions by individuals both in the United States and also several foreign countries.
A special shareholder’s meeting was held July 22, 2005, for the purpose of acting upon the recommendation of the board of directors to approve the sale and merger agreement of April 27th. All shares voted were in favor of the agreement. The date of the pending transaction was tentatively set for the end of January 2006.
The board of directors and management spent much of the remainder of 2005 working on the legal, regulatory and accounting aspects of the transaction. In addition to the December 31, 2005, year-end accounting requirements, additional preparation was required in order to again close out the books on the date of the actual sale and merger.
Thus, on January 31, 2006, the sale and merger of Citizens National Bank was consummated and a new board of directors was elected.
Retiring directors included outgoing Chairman of the Board Mary E Satter, great-granddaughter of John Binnie. As noted in the second page of this history, Mr Binnie was one of the bank’s founders in 1890. Other retiring directors included John G Satter, President & CEO Timothy C Flemming, and Jon K Dively. In addition, directors J Dixson McRaven and Randall W Watson retired from the board, after serving on the board of directors since January, 1961.
The members of the new board of directors elected January 31, 2006, were Bruce J Biagini, Patrick J Burke, Curtis C Farr, Nancy L Foster, John E Gorman, William C Gossett, Todd V Lester, G Michael Plaiss, Max R Rexroat, J B Schisler, Gary L Svec, and Gregory W Turner. Gary L Svec was elected Chairman of the Board of Directors.
Also on January 31, 2006, James B Schisler was appointed Chief Executive Officer and Todd V Lester was appointed President and Chief Lending Officer of Citizens National Bank.
In addition to the CEO and President, the Senior Management Committee included Senior Vice Presidents Kent A Pico, Data Processing, Gene B Grimm, Branch Offices, and Gregory W Turner of the Trust and Investment Financial Services Departments.
In the second quarter of 2006 the bank was approached by another bank in Galva indicating an interest in acquiring the assets and liabilities of Citizens’ Galva office. After careful consideration of the efficiencies of operating the Galva office, a decision was made by the Board of Directors in May to enter into an agreement to sell the office. Total deposits of the office were approximately $6 million and there were a minimal number of loan transactions at the office. The transaction included the sale of the building and land where the office was located. The transaction was expected to be completed in August, 2006, after receipt of the required regulatory approval and the coordination of the accounting and conversion processes.
As the bank entered the second half of 2006, the board of directors and management were very pleased with the progress the bank has made since January 31, 2006, in both performance in earnings and growth in assets and liabilities. In addition, the bank has received very positive customer feedback in the communities in which the bank had offices. The bank continues to grow by increasing new business in loans and deposits and also by expanding its activity in the trust, brokerage and insurance divisions.
